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Criminal Cartels and Liability of Corporate Managers

October 2008
Corporate GovernanceTelecommunications

Abstract

Recent cases in the UK and the US have highlighted the risks for company directors and managers taking part in cartels which are subject to criminal penalties under UK and US anti-trust law (“a criminal cartel”). In June 2008 and for the first time in the UK, executives were jailed for up to three years for their part in a criminal cartel. More cases are in the pipeline. Close co-operation by the UK and US anti-trust authorities in recent extradition cases has internationalised the risk. Paradoxically, enforcement action in the UK may reduce the risk of jail terms in the US. In-house counsel will seek to ensure that their company’s compliance procedure enables corporate managers to avoid the pitfalls. Taking part in a criminal cartel can have severe consequences for managers as well as for the company. Putting the focus on the risks to individual managers helps with corporate compliance as well. Executives who avoid personal criminal liability thereby tend to reduce corporate risks at the same time. This article covers: • Case studies: the UK’s first criminal cartel convictions and cartel offences charges • When is a cartel criminal? • What are the risks for individuals? • What should a manager do if a cartel is suspected? • What compliance procedures should there be?

Author

Beatrice Roxburgh
Senior Tutor, The University of Law, UK

Beatrice Roxburgh is an experienced competition law practitioner, with a career spanning from private practice in two of the City's pre-eminent competition law firms, to competition law enforcement, followed by 15 years as senior in-house competition counsel with BT Group plc, and joining the University of Law in March 2018 to teach competition law. In that time, she has led a variety of cases and investigations in-house at BT, overseen dawn raids as a competition law enforcer, and in private practice advised major corporates, government and public bodies on all aspects of European and UK anti-trust law (including its application to international mergers, joint ventures and other transactions). At the University of Law she aims to give our future practitioner the benefit of her experience and kindle the enthusiasm of the next generation of competition lawyers.

Company

The University of Law logo

The University of Law

The University of Law London Moorgate is the largest specialist corporate law school in the UK. It’s located in the City of London, close to leading global law firms. BT Group plc is a UK-based communication services company headquartered in London.

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