(5 min read)
Imagine receiving a call from your office receptionist one morning and being informed that competition regulators are at your office, seeking access to documents and systems. Your team is uncertain about the necessary actions to take and whom to reach out to for help. These unannounced inspections, known as "Dawn Raids", can disrupt operations, expose businesses and individuals to serious legal consequences, and reshape entire industries. Dawn Raids are a powerful tool used by competition regulators to investigate suspected breaches of competition law, including cartels, abuse of dominance and anti-competitive agreements or violations of digital regulations and foreign subsidy regulations. In Ireland, the Competition and Consumer Protection Commission (CCPC) is responsible for enforcing competition law at the national level, while the European Commission (EC) conducts Dawn Raids across EU Member States when suspected violations affect multiple jurisdictions (1).
In Part 1 of our Dawn Raids in Ireland series, we delve into the Powers of the CCPC to conduct search and seizures, emphasising key aspects businesses must be aware of to safeguard their rights and ensure the CCPC operates within its legal boundaries.
Era of Increased Dawn Raid Activity
The CCPC and EC are ramping up enforcement through Dawn Raids. In 2023/2024 the CCPC conducted Dawn Raids of businesses active in: (i) the home alarm industry; (ii) the publicly funded transport sector and (iii) the airline industry. During the same period, the EC conducted Dawn Raids at businesses active in the: (i) financial derivatives sector; (ii) data centre construction; (iii) provision of consultancy services; and (iv) in the fragrance industry. Most recently, in March 2025, the EC conducted Dawn Raids at companies operating within the non-alcoholic drinks sector across multiple Member States.
With an enhancement of its powers in 2023, the CCPC intends to expand its "capacity to conduct multiple simultaneous large scale investigations" (see the CCPC Strategy Statement 2024 – 2026) and has placed a strong emphasis on the vigorous enforcement of competition laws as a primary focus.
Dawn Raids – Why are they initiated? Where are they Conducted? And by Whom?
The CCPC merely needs a 'suspicion' of past or continuing anti-competitive behaviour, to initiate an Investigation. The suspicion may arise from a complaint by a customer, competitor or supplier, or following on from a market enquiry by the CCPC. Once initiated, the CCPC may conduct surveillance, whether through market monitoring, intelligence gathering, or covert operations, to track and uncover anti-competitive practices. Surveillance is often a precursor to a Dawn Raid.
Dawn Raids can occur at any time and at any place and are conducted at business premises, or at private residences (of directors or other employees) and can include vehicles. Dawn Raids involve searching, inspecting and seizing documents, electronic records and other critical evidence of suspected violations.
Searches are conducted by CCPC officials (referred to as "Authorised Officers"), who may be accompanied by police officers (members of An Garda Síochána). To obtain a Search Warrant, an Authorised Officer must satisfy a District Court Judge that there are reasonable grounds to suspect that evidence of a beach of competition law may be found at the place indicated. Dawn Raids cannot amount to a fishing expedition. The scope of the search must be directly linked to justifying the granting of the Search Warrant.
Businesses must carefully inspect the Search Warrant to verify that it accurately specifies the issue date, the address and description of business under investigation. Any discrepancies could invalidate the Search Warrant and thereby preventing the search from proceeding. This was exemplified in the 2005 case The Competition Authority v The Irish Dental Association where an error in outlining the target business's activity – stemming from the reuse of a previous Search Warrant as a template – was deemed critical. Consequently, the Search Warrant was found to be illegal, thus the search was declared invalid, and the evidence gathered was inadmissible. In another, unsuccessful prosecution, an error concerning an individual's name on the Search Warrant, authorising the search of a private residence, led to the seized material being returned after the error was identified during the search.
Powers of Search and Seizure
Upon arriving at the premises, Authorised Officers have specific powers to effect the search, including the power to:
- Gain entry using reasonable force if necessary, to conduct the search. The Search Warrant will contain the name of an Authorised Officer (referred to as the Warrant Holder) and businesses ought to verify the person exercising the Search Warrant is the Warrant Holder. The Warrant Holder will furnish the business with a copy of the Search Warrant and an accompanying Explanatory Note that outlines the search objective, including information about the alleged behaviour under investigation. In an EC investigation, for inspections within private residences, the EC would collaborate with the CCPC, by securing a District Court Search Warrant beforehand.
- Inspect and seize material such as books, documents, records or other storage medium and take steps to preserve and secure evidence. In this context, the definition of 'records' extends to information stored on any storage medium (e.g. images, audio or video recordings etc.). The CCPC can seize electronic equipment (e.g. laptops, removable drives and mobile phones). Material seized can be held indefinitely, right up to the conclusion of any proceedings. If the material is required for business continuity, an early request to the CCPC for copies is advisable. Unlike the CCPC, a key distinction in the powers of the EC is that the EC can only retain copies of records and not seize originals. Throughout the search, an Authorised Officer will compile and update a list of all materials intended for seizure, known as the Site Exhibits List. It is crucial for businesses to promptly object when private data or privileged material is earmarked for inspection or seizure, aiding in potential future disputes. At the conclusion of the search, the Site Exhibit List will be shown to a representative of the business, who will be requested to sign each page to acknowledge the materials seized. A signed copy of the Site Exhibits List will be provided to the business once the search is completed.
- Require individuals on site to provide detailed information: their name, home address, their occupation, information about the business and the management of the business. Authorised Officers may seek to conduct interviews with individuals on-site, potentially under caution. It is advisable for businesses to request the rescheduling of such interviews to a later date or, if delaying is not feasible, to ensure the presence of a legal advisor during the interview.
- Require individuals to facilitate access to physical records (including in locked cabinets) and to records stored on data equipment or computers, including material on the cloud accessible (including requesting relevant passwords required to gain access). The obligation to provide passwords also extends to mobile phone devices and other handheld electronic devices.
- Seal the premises to secure and enable a subsequent return to conclude the search. Re-entry to a premises is possible within the timeframe of the warrant (1 month). Where a seal is put in place, business must warn staff (including office services or security staff) not to interfere with a seal as this will likely amount to obstruction. The EC has had this power for many years, and it has proved very effective.
- Continue the search: the competition authorities can either continue the search on site or may continue the search of seized material off site at their own premises.
- Authorised Officers cannot search an individual during a search or search anything on that person.
Penalties for Obstruction / Interference
Businesses and individuals must not obstruct or interfere in the search. Preventing entry; hiding or deleting evidence; or tipping off other parties, failing to answer questions or giving false information during a search is an offence. The Garda could arrest and detain any individual for doing so and can hold that individual for up to 24 hours.
If convicted of obstructing a CCPC search, the individual is liable for a fine of up to €5,000 and/or six months in jail; or a fine not exceeding €50,000 and/or 3 years in jail. Obstruction of an EC Dawn Raid could result in a fine not exceeding 1% of the total turnover of the business in the previous year. For practical tips for businesses on how to prepare for a Dawn Raid by a competition authority and how staff should conduct themselves during such an event, please see Part 3 in our Dawn Raids in Ireland series on Key Steps for Business.
Dawn Raids by the EU Commission
An inspection decision is usually made at the start of an investigation when the EC suspects a competition law infringement. Multiple inspections, known as successive inspections, can occur during the same investigation. The EC must inform and consult relevant Member States Competition Authority (for example, the CCPC in Ireland), before conducting an inspection. For inspections within private residences, the EC would collaborate with the CCPC, by securing a District Court Search Warrant beforehand. The inspection decision must be well-reasoned, stating the investigation's subject matter, purpose, start date, potential penalties, and the right to judicial review by the European Court of Justice ("ECJ"). It is essential to state the investigation's scope and in practice these statements are brief. Inspections must be based on reasonable grounds for suspecting an infringement and must remain within the scope of those suspicions.
Following an inspection, the business will receive a detailed list of the documents that were copied, ensuring a transparent process. Failure to comply with an EC Dawn Raid, or any actions that obstruct the procedure, can result in significant fines and negatively impact the business's reputation in future investigations.
Conclusion
Dawn Raids by competition regulators, such as the CCPC and EC, represent a significant enforcement tool against anti-competitive practices, with recent activities highlighting the competition authorities' commitment to robust enforcement across various sectors. Businesses must understand the legal framework, the powers of the competition authorities, and the critical steps to take when faced with a Dawn Raid to mitigate operational repercussions and potential legal including hefty fines and potential jail time.
The conclusion of a Dawn Raid and the departure of CCPC Authorised Officers does not signify the end of the process. Further challenges lie ahead for the business in seeking to protect its rights over data seized, as will be outlined in Part 2 of our Dawn Raids In Ireland series "Disputes Relating to Seized Data".
Contact our Competition Team to ensure your team knows their rights, obligations, and best practices to minimise their risks and protect your business and check out our website for further updates.
