Director disqualification describes a sanction where an individual is not allowed to act as a director of a company for a period following a violation of competition law. Bidder exclusion is the banning of the company from a bidding process or future public procurement tenders, typically in a specific market and for a specific amount of time.
In the context of the importance of fighting cartels and bid rigging and of the debate around whether antitrust fines may be too low relative to the gains from the infringement, these forms of debarment may be very effective. Their application, however, raises a few practical challenges relating to the objectives pursued, the scope of application (e.g. which individuals or companies should be subject to it, for how long and in which markets), the standard of proof to be met, and the negative consequences they may bring about.
In November 2022, the OECD held a discussion to explore the objective and scope of application of debarment sanctions in different jurisdictions; the practical issues associated with their application and their effectiveness
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