How do companies deal with competition law infringement?

Laws that have been enacted to protect the interests of businesses and consumers are classified under competition and consumer laws. Corporates often faces malpractices and strict competition from opponents who resort to unfair means. Competition law compliance makes sure this does not happen. Any infringement of law is duly penalized to ensure that it does not happen again. Here are some characteristics of this law from writing assignment help.

Features of competition law infringement

1. Companies are fined up to 10 percent of turnover.
2. Reputation of company is harmed and board members are penalized.
3. Lawsuits from opponents lead to further monetary losses.
4. Management of company is affected and involved members are disqualified.

Benefits of competition law

1. Companies can avoid penalties if they find out early that their policies are violating the law.
2. An ethical business environment is created in the market.
3. Industries can take appropriate action against malpractices.
4. Small businesses that are still in their nascent stages can compete freely in the market alongside their established counterparts.

In order to stay within the boundaries of competition law, companies follow a 4-step process.

1. Risk identification- it is necessary to identify the areas of operation that are liable to impose a risk of infringement. It varies from business to business. Companies need to keep an eye on employees who might disclose tender details and other commercially critical information.
2. Risk assessment- it is important to assess the potential of risk associated from every source. It is classified as

• High risk- the high-risk employees include senior managers, marketing personnel, members involved in trade meetings and new employees from competitive firms.
• Medium risk- it includes the back end staff and employees that are not involved in meetings with other firms.
• Low risk- manual labour, clerical staff and employees involved in administrative roles.

3. Risk mitigation- this step focuses on bringing changes in the attitude of employees so that their work complies with the ethics of competition law. It can be introduced as a part of training of new recruits. Company secretaries and lawyers play an important role in risk mitigation.
4. Review- the company should be capable of monitoring the changes in the company’s policies as well as that of competitors for any violation of competition law.

Management as well as law students are often given assignments and case studies on competition law. It requires in-depth research of the businesses involved in the case study. As a result it becomes quite time consuming. If you are also in need of management assignment help, we can sort it out. All you need to do is visit our portal and tell us about your assignment task. We have an experienced team of academic writers who will ensure that you get the best grades in class.