Putting The ‘Aid' In Dawn Raid: A Lesson In First Response

In the midst of your morning coffee, reading your financial broadsheet of choice, you receive an alarming call from reception; officials from the European Commission (EC) have arrived at the office announcing a dawn raid. In the search for anti-competitive agreements, they have begun to seize mobile phones, papers and hard drives. Worse still, on this particular morning, you are 600 miles away at the World Economic Forum (WEF) with other senior employees - a nightmarish situation indeed, but one that is increasingly a harsh reality as opposed to a bad dream.

Initial response

The steps taken during the subsequent 30 minutes are crucial, as they will substantially impact the way in which the ensuing investigation develops. As competition authorities can strike unannounced, even in the event of your absence, it is essential that suitable practices are put in place and that all staff are trained properly to ensure this process runs as smoothly as possible.

Reception should first establish which organisation the officials are from, what the purpose of the visit is and how many officials there are. A request for official IDs, business cards and a copy of the warrant or the decision authorising the inspection should be made in order to determine this. Reception should take copies of all documents handed over by the officials.

In the past, there have been instances where security guards have turned EC officials away in the belief that they did not have the authority to enter the premises. In the UK, cartels, price fixing and bid rigging can attract criminal sanctions. In the rest of Europe, they are mostly non-criminal offences, but nevertheless are prosecuted in quasi-criminal proceedings. So it is imperative that all staff know not to obstruct the officials in carrying out their investigation. Any failure to cooperate can also increase the ultimate fine, should investigators find evidence of anti-competitive behaviour.

Although staff should not impede the investigators, reception should politely ask them to await the arrival of the company's senior executives or, preferably, its lawyers. Reception should show the investigators to a waiting area (such as an empty meeting room) that does not contain any files or have access to the company's IT system, and they should be politely offered refreshments.

Reception must contact the company's legal department, who should immediately contact external lawyers with expertise in dawn raids. All copies of...

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