The Office of Fair Trading ("OFT") confirmed yesterday that four individuals are to be prosecuted for their alleged role in the British Airways price fixing probe.
This announcement comes hot on the heels of the UK's first price-fixing prosecution in June of this year – this saw three businessmen jailed for between 24 and 30 months for their involvement in a marine hose cartel.
The four current and former British Airways executives (often referred to as the BA Four!) are alleged to have been involved in an illegal arrangement with Virgin Atlantic to set the level of fuel duty surcharges on long haul passenger flights.
The matter came to light after Virgin Atlantic tipped-off the OFT about the cartel. As a result of their timely approach to the authorities, the organisation received immunity from financial penalties and the executives involved were granted immunity from prosecution.
By contrast, British Airways were fined a record £121 million and now the BA Four are facing criminal charges - if convicted, each could face up to five years in prison and/or an unlimited fine.
The OFT's announcement, together with the convictions in the marine hose industry, shows that the OFT will use its criminal powers against cartel members. Cartel activity is no longer just a risk for the business – rather, it is a serious risk for you personally. This case also shows the benefits of being first to the OFT's door with information about cartel involvement.
MacRoberts has extensive experience in dealing with cartel investigations and leniency applications. Immediate specialist help is imperative when dealing with the OFT to ensure that your interests are fully protected. We also offer full competition law training, compliance and audit services.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
