If a company fails to comply with its legal obligations during a dawn raid, significant fines can be imposed, and individuals may face civil or even criminal sanctions.
Raid alert issues how to#
All employees must know how to deal with the inspectors, and what their legal obligations and rights are. It is therefore crucial that an effective internal response strategy is put in place before being confronted with a dawn raid. Dawn raids may take place in multiple locations (including in different countries) at the same time. Irrespective of which procedural rules apply, a dawn raid places considerable pressure on multiple areas of a business at once, and can be very stressful. It is therefore important to check the inspectors' authorisation documents carefully to determine which rules apply, as detailed below. It is important to clarify at the outset who is leading the dawn raid and the underlying investigation into a suspected infringement of competition law, as this will affect which detailed procedural rules apply to the dawn raid and the scope of the inspectors' powers. In the UK, competition dawn raids may be carried out by the CMA or a sectoral regulator with concurrent competition powers 1. If a competition authority suspects that an infringement of competition law has occurred, it may carry out unannounced inspections ("dawn raids") at the premises of companies suspected of involvement (and, in some circumstances, also at the premises of their customers and/or competitors). Businesses should seek legal advice in relation to European Commission investigations that were initiated prior to 1 January 2021.
For further information on inspections by European competition authorities see our Quickguide, " Dawn raids: dealing with inspections by European competition authorities". On 1 January 2021, the UK and EU became two fully distinct regulatory, legal and customs territories, whose relationship is governed by the Trade and Cooperation Agreement (TCA).įor new investigations, the European Commission no longer has jurisdiction to carry out dawn raids in the UK, nor to direct the Competition and Markets Authority (CMA) to carry out raids on its behalf. The UK left the EU on 31 January 2020 and the Brexit Transition Period ended on 31 December 2020.
This Quickguide provides an overview of guidance on how to ensure an effective response to an unannounced inspection (known as a "dawn raid") by a competition authority. Restructuring, Special Situations and Insolvency.Antitrust, Regulation and Foreign Investment.
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