Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
Tips and traps
What would be your recommendations to companies faced with a cartel investigation and what potential pitfalls would you highlight?

Answer ... A company that is the subject of (or is expecting) a cartel investigation should consider the following:

  • Conduct a thorough internal competition law audit to discover any breach of the Competition Act.
  • Seek legal advice on the feasibility of filing a leniency application if a breach has been discovered. Also, name individuals involved in the cartel in the application for a lesser penalty.
  • Set up an ombudsman programme for employees to make anonymous disclosures of any potential breach of the act and any evidence thereof.
  • Set up a robust competition compliance programme, if not already in place.

The following are potential pitfalls which a company under cartel investigation may face:

  • drainage of time, resource and focus on compliance with the directions and orders of the director general, the Competition Commission and the appellate authorities;
  • loss of reputation, decrease in stock value and trust deficit between the company, contractors, clients and shareholders;
  • financial loss due to penalties imposed and compensation claims;
  • the emergence of certain issues which were not alleged at the time of the start of the investigation; and
  • if privileged is not asserted, the director general’s access to and reliance on otherwise legally privileged documents.

For more information about this answer please contact: Vivek Agarwal from DMD® ADVOCATES