The linkages between corruption and violations of competition laws
Filed under - Public procurement
To better understand the linkages between corruption and violations of competition law.
- Corruption and competition: the linkages
- Mitigating corruption risks in competition practices and policies
- Further reading
Although distinct, there is a broad consensus and empirical evidence that competition and anti-corruption are closely intertwined, with corruption inversely related to levels of competition. Anti-competitive business conducts frequently occur in tandem with corruption, which can also facilitate firms’ collusive behaviours. This intersection between anti-competitive practices and corruption is particularly evident in the field of public procurement.
The literature recommends a coordinated enforcement approach to corruption and competition laws, implying increased cooperation between anti-corruption and competition authorities. While collusion and corruption are generally pursued under distinct but compatible legal frameworks, there is a need to balance competing requirements of collusion and corruption prevention.
Similar to anti-corruption, enforcement tools at the disposal of competition agencies include a mixture of carrots and sticks, such as dissuasive civil and criminal sanctions, leniency programmes for early defectors, effective monitoring, complaints mechanisms and whistleblowing protection. Naming and shaming approaches, including ethical blacklisting of companies violating competition and anti-corruption laws, is also being envisaged by some countries.
Author(s): Marie Chêne, Transparency International, firstname.lastname@example.org
Reviewed by: Finn Heinrich, Ph.D., Transparency International, email@example.com
Publication date: 12 February 2016