The consequences of breaching competition law can be serious with significant penalties – up to 10% of global turnover and personal liability for individuals.
Increased government spending on infrastructure may drive the need for more alliances and Joint Ventures to share risk, resources and expertise. Infrastructure client requirements for contractors to engage in closer collaboration and achieve greater efficiencies may also drive types of cooperation and information sharing between JV or alliance partners that may increase competition law risk.
Here we provide an overview of some of the main competition law and compliance risks to consider when planning Joint Ventures and alliances – especially when they are between competitors.
- Risks of breaching competition law can be serious.
- It is critical to address competition law considerations at the early stages of planning a Joint Venture.
- The design and ongoing review of guidelines and protocols is critical to ensure compliance is maintained by JV partners.
- Factor in new and evolving regulatory developments such as national security rules.
- Consider the potential jurisdictional differences in regulation, especially after Brexit.