Internal audits of competition law compliance are no longer just a formality – they are becoming one of the key tools of corporate compliance programs. They help identify risks, ensure legal compliance, and prevent hefty fines and other negative consequences of competition law violations
INTRODUCTION: WHAT IS AN ANTITRUST AUDIT AND WHY IS IT IMPORTANT
The consequences of competition law violations are becoming increasingly severe, making proactive compliance measures more important than ever. The Czech Competition Authority (ÚOHS) and other competition watchdogs worldwide emphasize the importance of effective compliance programs, with internal audits serving as a key detection tool for identifying risks and verifying the effectiveness of compliance processes.
An antitrust audit is a systematic review of key business steps, strategies, documents, and communications to assess whether employee activities comply with competition law. The primary objective of the audit is to detect and mitigate risks early – before they lead to serious legal and financial consequences.
This article – the first in a series on antitrust audits – explains why these audits matter and what benefits they bring. In the upcoming articles, we will focus in more detail on the practical aspects of conducting audits, including recommended procedures and available tools and technologies that significantly enhance the audit process.
WHY ANTITRUST AUDITS GIVE COMPANIES A STRATEGIC ADVANTAGE
An antitrust audit is not just a formal compliance check – when properly targeted and conducted, it brings real, tangible benefits that can protect companies from serious legal and financial consequences.
- Verification of employee compliance and prevention – An audit allows a company to verify whether employees comply with internal competition compliance policies, reducing the risk of inadvertent violations. This is particularly important for companies that have previously violated competition law, as repeat offenses lead to stricter sanctions and further reputational damage. A positive side effect of audits is also raising employee awareness of competition law risks, serving as a preventive tool against future violations.
- Early detection of competition law issues – An audit is the most effective way to quickly and efficiently – yet with the necessary level of detail – assess warning signs, gain a clear understanding of potential violations, and determine the best course of action.
- Room for strategic decision-making – Early risk identification gives companies greater control over risk management. Whether it involves adjusting business practices and strategies, providing additional employee training, or self-reporting to authorities, detecting violations earlier provides more opportunities to minimize potential damage.
- Reducing the risk of investigations and fines – Companies that voluntarily report their own competition law violations can benefit from leniency programs, which may lead to significant fine reductions or even complete immunity. In some jurisdictions (including the Czech Republic), leniency applies not only to cartels but also to vertical agreements between suppliers and distributors. Additionally, terminating anticompetitive conduct before an investigation begins can significantly improve a company's position when penalties are determined.
- Eligibility for fine reductions – If a company violates competition law, some jurisdictions offer fine reductions for companies with an effective compliance program. The Czech Competition Authority (ÚOHS) may reduce fines by up to 10%, provided the company has a well-functioning compliance program. Regular audits are one of the key elements for securing the maximum reduction.
CONCLUSION: A KEY COMPLIANCE TOOL FOR EVERY BUSINESS
In an environment of increasing pressure on competition compliance, internal antitrust audits are no longer a luxury limited to a handful of companies – they are becoming an integral part of compliance programs. They help companies:
- proactively identify and mitigate risks
- ensure employees comply with competition law
- strengthen competition compliance programs
- reduce the risk of high fines and other negative consequences of violations
This article has outlined the importance of antitrust audits, their timing, and their benefits. In our next article, we will focus on the practical aspects of conducting an antitrust audit, including key steps, best practices, and the latest tools that make the process more efficient and effective.
Would you like to assess competition compliance risks in your company? Discuss it with our team. Contact us to find out how an internal audit can benefit your business.
