HAVEL & PARTNERS, the largest law firm in the Czech Republic and Slovakia, has launched a new comprehensive service called Dawn Raid Protection. This service provides maximum protection for companies during unannounced inspections by antitrust authorities, known as dawn raids. The service responds to the increasing number of these inspections since the COVID-19 pandemic and helps companies prepare for the possibility that their activities may be unexpectedly scrutinised by the competition authority.”

Rising trend of dawn raids in the post-COVID era

Dawn raids, unannounced inspections conducted at dawn, are a highly effective investigative tool for competition authorities. The element of surprise allows authorities to obtain crucial evidence. According to statistics released yesterday, the Czech Office for the Protection of Competition has conducted nearly 80 dawn raids since 2021, marking a significant increase compared to previous periods.

“Data clearly show that dawn raids have become a common part of corporate reality,” says Robert Neruda, partner at HAVEL & PARTNERS and head of the team of competition lawyers and economists. “Post-pandemic, companies are bringing their employees back to the office. However, they are also facing new challenges – they may be caught off guard by more frequent and sophisticated unannounced inspections by the antimonopoly office, which typically last several days.”

Digital tools are changing the game

The antimonopoly authority now utilises cutting-edge forensic software, Nuix, which allows inspectors to quickly and efficiently analyse large volumes of e-mails and digital documents directly on company premises. “Thanks to advanced tools, investigators can process vast amounts of data in a short time. For companies, this means a significant increase in risk – a single unannounced inspection can uncover even older problematic communications that the current management may not be aware of,” explains Neruda. He also warns that failing to duly cooperate during an investigation can result in fines of up to 1% of the holding’s annual turnover.

How HAVEL & PARTNERS prepares its clients for dawn raids

The Dawn Raid Protection service offers comprehensive solutions for companies of all sizes and from various industries. Key benefits for clients enrolled in the programme include:

Crisis Manuals: A brief guide outlining key principles of conduct for employees during an unexpected inspection by the competition authority.

24/7 Legal Support: Immediate availability of experts to assist clients during inspections.

Automatic Updates of Instructions: Continuous updates in case of changes in contacts or rules, and considering current decision-making practices.

Employee Training: Access to specialised training and dawn raid simulations to prepare employees for a potential dawn raid.

How to enrol in the Dawn Raid Protection programme

Companies can easily enrol in the programme by filling in the form at www.havelpartners.cz/dawnraid.

“Dawn raids no longer concern just large corporations – the antimonopoly authority and other regulators are expanding inspections across sectors and are targeting companies of various sizes. Timely and professional preparation is now an essential part of risk management for any responsible company,” adds Neruda.