Discovering your business partner has violated antitrust laws can be a shocking and unsettling experience. These laws exist to promote competition and prohibit practices that restrain trade. If your business partner disregards these laws, it puts your business in jeopardy and could also lead to personal repercussions.
Understanding the steps to take upon such discovery is vital. You must address this serious situation promptly to protect your business, your financial security and your reputation.
Understanding the violation
Antitrust violations include practices like price fixing, bid rigging or market division. Each of these actions restricts free trade and competition, and they are serious offenses.
Seek information on the violation. Who carried it out? How did it happen? What are the potential implications? Gathering all the facts will allow you to make informed decisions on how to move forward.
Distancing yourself from the action
The next step is to distance yourself from the unlawful activities. If possible, you should cease any business dealings related to the illegal conduct. It is important that you make it clear you were not involved and do not condone the actions. You do not want authorities to implicate you in the violation.
Reporting the violation
You must also report the violation to the appropriate authorities. In Massachusetts, you would report the violation to the Office of the Attorney General’s Antitrust Division. This division works to ensure businesses are not engaging in practices that restrict competition and harm consumers.
Reporting is an essential step in the process. While it may seem daunting, it can serve to protect your business from further harm. It is not a step to take lightly, you should do it promptly after receiving all the facts.
Safeguarding your business for the future
Finally, you must take steps to protect your business from future violations. Review your business practices, policies and partnerships. It may be necessary to end partnerships or revise agreements to ensure compliance with antitrust laws.
Dealing with a business partner’s antitrust violation is a complex and difficult process. However, with the right approach, you can protect your business and uphold your ethical standards.