A sudden inspection by the competition protection authorities is an event that may disrupt the normal course of any company’s operations. Investigations conducted by the Commission for Protection of Competition (CPC), related to potential infringements of national competition law or the Treaty on the Functioning of the European Union (TFEU), involve significant legal and financial risks. They may result in the imposition of substantial fines, the filing of damages claims, and, in certain cases, even personal sanctions against managers and senior executives.

In such a situation, it is crucial for the company to respond promptly and safeguard its rights, while at the same time cooperating with the inspectors within the limits of the law in order to avoid further complications.

These on-site inspections, commonly referred to in practice as “dawn raids,” represent an extremely effective tool used by the CPC for gathering evidence. They are applied in investigations of serious infringements such as prohibited agreements and cartels, abuse of monopoly or dominant position, as well as in merger control proceedings. Inspections are also carried out under European legislation, including Regulations (EC) No 1/2003 and No 139/2004. In this context, the CPC may cooperate with the competent authorities of other Member States, provide assistance to them, and exchange information.

It should be noted that dawn raids are an intensive enforcement instrument that may have significant consequences for the operations and reputation of any company. During such inspections, officials of the Commission are vested with extensive powers aimed at the effective collection of evidence. They are entitled to access all premises, vehicles, and facilities of the company, as well as to review and seize documents—regardless of whether they are in paper, electronic, or any other format. Their powers also extend to direct access to IT systems, servers, and traffic data. In certain circumstances, inspectors may even seal offices or temporarily restrict access to corporate email accounts, as well as request on-the-spot oral explanations from employees.

Any obstruction or refusal to cooperate is strictly sanctioned and may lead to serious financial consequences—up to 1% of the annual turnover or up to 5% of the average daily turnover of the undertaking.

Alongside the broad powers of the authorities, inspected companies also benefit from important legal safeguards for the protection of their rights. However, the effective exercise of these safeguards largely depends on the level of prior preparation of the company concerned.

The absence of clearly defined internal procedures and coordination in such situations often leads to hasty and incorrect actions. Therefore, it is essential for companies to establish internal rules for responding to inspections, to train their key personnel, and to ensure an appropriate configuration of their IT systems.

In this context, Velchev & Co. has significant practical experience in preparing companies for such inspections. Our firm has conducted specialized training at two levels—both for senior management and for employees directly involved in the process. In addition, our team has repeatedly organized and carried out simulated dawn raids in real business environments, including in companies from various sectors, such as telecommunications operators and other business enterprises.

You may contact us if you wish to develop a reliable response strategy and receive timely professional support. Our team will assist you in effectively protecting the company’s rights and minimizing the risk of significant adverse consequences.