The Competition and Markets Authority (CMA) has disqualified its first company director for infringing competition law.
Daniel Aston, managing director of the online poster supplier Trod Ltd, has undertaken not to act as a director of any UK company for five years.
Under the Company Directors Disqualification Act 1986, the CMA can seek the disqualification of an individual, either by court order or legally binding undertaking, from holding company directorships or performing certain roles in relation to a company for up to 15 years, following a competition law breach. The CMA has had this power since 2003.
Trod breached competition law by making an agreement with a competitor online seller that they would not undercut each other’s prices for posters and frames sold on Amazon.
Nicole Kar, competition partner at Linklaters, said: “Director disqualification was really the dog that didn’t bark until [this] announcement.
“In its decision, the CMA took into account Mr Aston’s conduct and the fact that he was willing to give an undertaking before court proceedings were commenced, leading the CMA to consider a 5-year period to be appropriate. However, this was a small cartel, and it was the first time the CMA has made use of these powers. In future cases involving larger businesses we might expect the CMA to impose a longer period of disqualification.
“This announcement will be widely read as a warning that more enforcement is coming.”
The other company involved was granted immunity for co-operating with the CMA.
