24.04.2025 | Latvian competition authority
The article emphasizes the significance of competition law for associations, highlighting that any entity involved in economic activities, including associations, is subject to these laws. Associations, which often aim to achieve various goals such as environmental or health-related objectives, must be cautious in their operations to avoid violating competition regulations.
Competition law advisors play a crucial role in informing associations about their responsibilities, particularly when acting as a collective voice for their members. It is essential for these advisors to ensure that associations understand the legal implications of their activities, especially in sectors like construction where economic activities may overlap with their objectives.
Key prohibitions for associations include avoiding agreements that restrict competition and the misuse of a dominant position. While the latter is less common, it is vital for associations to assess their role as market participants. Common violations often stem from the prohibition of agreements rather than misuse of dominance.
Information exchange among members is necessary for achieving association goals but can also lead to competition restrictions. Advisors must ensure that such exchanges do not breach competition laws, particularly regarding sensitive information that could affect market competition.
Each market participant must independently determine their actions, and sharing sensitive information that could influence competition is prohibited. The article discusses the risks associated with exchanging commercially sensitive information, which can impact competitors' strategies.
Prohibited agreements can arise from direct or indirect information exchanges, including discussions or coordinated actions aimed at restricting competition. Even seemingly non-binding recommendations can become binding if followed by members. Public statements made at conferences can also signal future actions that may lead to anti-competitive behavior.
To mitigate risks, associations should handle information collection carefully, ensuring it aligns with legal standards. It is advisable to use independent parties for data collection to avoid exposing sensitive information. When sharing information, it should be general enough to prevent the identification of individual members.
Key considerations for information collection include ensuring no sensitive information is collected unnecessarily, maintaining a general level of detail, and considering the age and relevance of the data. The structure of the market also plays a role in determining the risks associated with information sharing.
Overall, the article stresses the importance of developing internal guidelines for compliance with competition law and promoting awareness of permissible practices. Competition law advisors should assist businesses in understanding the implications of information sharing and help create compliance frameworks aligned with regulatory guidelines.
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