Last month, the Competition & Markets Authority (CMA) updated its guidance on whistleblowing. The opening paragraph announcing the new guidance starts, “If you are an employee or ex-employee and wish to provide the CMA with information and/or raise a concern about your employer’s possible involvement in anti-competitive or unfair trading practices, please contact us….”.
Also last month, the CMA secured the disqualification of three company directors after finding they broke competition law by forming a cartel in their industry. Meanwhile, the French competition authority announced towards the end of July that it had fined Chanel €130,000 for forbidding online sales by eyeglass retailers, LVMH €500,000 for imposing its prices and other sales terms on opticians, and Luxottica €125m for forcing its prices and other sales terms on opticians.
In short – competition law authorities are happy to uphold the law by fining and (in the UK) disqualifying directors. It will also encourage third parties, whether employees or ex-employees, to whistleblow. Further agreements that infringe competition law are unenforceable under both UK and EU laws, and parties adversely affected by agreements that infringe competition law can pursue claims for damages.
Fox Williams is advising clients in the fashion industry on a monthly basis on issues concerning how they can:
- Ensure price stability at retail; or
- Control the use of the online channel; or
- Ensure that their counterparties do not act for their competitors.
Stephen Sidkin is a partner at Fox Williams LLP (www.fashionlaw.co.uk; www.agentlaw.co.uk; and www.distributorlaw.co.uk)
© Fox Williams LLP 2021
