McGuireWoods London partner Matthew Hall discussed the U.K. Competition and Markets Authority’s (CMA’s) use of warning and advisory letters to encourage compliance with antitrust/competition law, in a Nov. 19, 2024, Law360 article. Hall explored the implications of these letters for businesses and the CMA’s recent introduction of heat maps to increase transparency.
“Although receipt of one of these letters from the CMA does not necessarily mean there has been an infringement, it is a prompt to the recipient to review practices to make sure it is compliant,” Hall wrote.
Hall explained that the CMA often sends warning or advisory letters when it identifies potential issues that do not warrant a formal investigation. Factors such as the seriousness of the suspected breach, the strength of the evidence and the potential harm to competition influence the CMA’s decision. Advisory letters typically request acknowledgment of receipt, Hall wrote, while warning letters require businesses to outline steps they take to ensure compliance.
The CMA’s recent publication of heat maps, which illustrate the geographic distribution of letters issued to businesses in the United Kingdom, underscores the agency’s proactive approach. “The CMA,” Hall noted, “pointed out that the maps illustrate the CMA’s proactive approach to ensuring businesses across the U.K. comply with competition law, regardless of size or location.”
Hall cautioned that businesses must take these letters seriously. “Failure to act on a letter can in the worst case give rise to an increased fine, should a formal investigation find an infringement of competition law,” concluded Hall, an antitrust lawyer and member of McGuireWoods’ Government Investigations & White Collar Litigation Department.