The Competition and Markets Authority has acted in response to research showing poor levels of understanding of competition law, by releasing films designed to help SMEs avoid breaking the rules
It has never been more crucial for UK business leaders to understand the risks involved with anti-competitive conduct. And yet for many, competition law remains fraught with confusion and ambiguities.
In fact, earlier this year, an independent report commissioned by the Competition and Markets Authority (CMA) concluded that 77 per cent of firms either had a hazy grasp of competition law or were completely oblivious to its existence.
The research also revealed that, while 55 per cent of businesses know price-fixing is illegal, 18 per cent believed that it is acceptable to agree prices with rivals (27 per cent were unsure).
It is in response to these alarming findings that the CMA has now launched a new suite of materials, predominantly aimed at SMEs, with a view to helping directors fully comprehend why competition law exists – and how to avoid falling foul of it.
The user-friendly materials – which include eight animated films, a quiz, a checklist on what to avoid and enlightening case studies – include advice on the law and how to comply, as well as information on what business owners can do if they suspect a rival firm is breaking the law.