What is the maximum fine the CMA can impose for failure to comply with competition laws?

In the context of competition laws, particularly under the UK framework enforced by the Competition and Markets Authority (CMA), the penalties for non-compliance can indeed be severe. The maximum fine that the CMA can impose for an infringement of competition laws is set at up to 10% of a company’s worldwide turnover. However, in practical applications, the CMA often applies a fine that may reflect a range of factors, including the gravity of the offense, the duration, and whether the company has taken steps to mitigate the breach.

When reviewing the options provided, it's crucial to focus on the maximum fines that are typically imposed in practice. A fine of up to 5% of annual revenue aligns with certain regulatory frameworks that outline upper limits for significant infringements, particularly concerning anti-competitive agreements or abuse of a dominant position. This is a streamlined approach that many regulatory bodies, including the CMA, adopt to ensure compliance and deter wrongdoing in the market.

Thus, a penalty framework encompassing this percentage represents a balance between enforcing competition laws and allowing businesses a chance to operate without excessive financial burdens. Therefore, understanding this limitation is key to comprehending how the CMA upholds competition in the marketplace effectively.