Many businesses in the United Kingdom and European Union are inadequately prepared to respond to a “dawn raid” by competition law authorities, McGuireWoods London partner Matthew Hall wrote in an April 2025 cover article in PLC Magazine.
Regulators typically are empowered to enter businesses without notice to search for evidence of competition law violations. These visits are known as “dawn raids,” and regulators’ methods have evolved as new technology changes how employees share and store relevant electronic documents. Regulators’ increasing focus on mobile devices and inappropriate uses of instant messaging services or disappearing messages can create problems for businesses, Hall wrote.
In the UK, the Digital Markets, Competition and Consumers Act 2024 expanded the Competition and Markets Authority’s powers during and after raids and stiffened penalties for obstruction and noncooperation. Regulators also can carry out fully remote raids, using virtual data rooms and surprise video conference interviews, noted Hall, an antitrust lawyer and member of McGuireWoods’ Government Investigations & White Collar Litigation Department.
“Businesses operating in any sector need to understand their IT infrastructure and legal obligations so that, in the event of a raid, they and their employees are ready to respond appropriately,” Hall wrote. “It is easy to get it wrong when faced with a dawn raid and the consequences of doing so can be significant.”