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There Is No Corona Defense for Cartels

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Blog

There Is No Corona Defense for Cartels

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1 Min Read

Author

Eva Cole

Related Locations

New York

Related Topics

Antitrust Basics
Cartels
COVID-19
Compliance and Counseling

Related Capabilities

Antitrust/Competition

Related Regions

North America

March 5, 2020

In-house compliance teams should be on alert as the coronavirus (COVID-19) continues to spread. It is often during times of perceived crises or disasters that competitors end up discussing subjects that can be risky from an antitrust perspective (e.g., procurement costs and selling prices). The risk is amplified when there is a corresponding downturn in the markets and financial uncertainty. Contacts with competitors can be dangerous even if the initial purpose of the contact seems legitimate under the circumstances, i.e., to exchange information about coping with the current situation.     

Given this, consider sending a compliance reminder or conducting a “refresh” training on the “do’s and don’ts” of competitor contacts. And, consider ramping up efforts to monitor potential cartel activities, at least during this period of heightened concern.

Finally, operations overseas are not immune from U.S. antitrust scrutiny. Consider the same tips from above, and the overall health of your compliance programs, even outside the United States.

View all of our COVID-19 perspectives here. Contact a member of our COVID-19 Legal Task Force here.

Related Professionals

Related Professionals

Eva Cole

Eva Cole

This entry has been created for information and planning purposes. It is not intended to be, nor should it be substituted for, legal advice, which turns on specific facts.

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