Remaining dawn raid ready

August 2025  |  FEATURE | RISK MANAGEMENT

Financier Worldwide Magazine

August 2025 Issue

Dawn raids – surprise, unannounced inspections by government authorities – are far from rare. Often initiated following tip-offs from whistleblowers or confessions from leniency applicants, these raids allow investigators to seize information for further examination. The element of surprise is crucial, as it significantly reduces the risk of evidence being destroyed or tampered with.

These inspections can target any type of business or individual and may be triggered by a wide range of regulatory concerns, including antitrust violations, fraud or breaches of consumer protection laws. As such, it is essential that all businesses, regardless of size or sector, are adequately prepared to respond. Proper preparation not only ensures that employees know how to act under pressure but also helps to minimise disruption and prevent authorities from exceeding their legal powers.

The frequency of dawn raids has increased in recent years, rebounding from the decline seen during the COVID-19 pandemic. In 2024 alone, over 70 dawn raids were conducted globally, with 24 out of 31 surveyed jurisdictions confirming enforcement activity. In Europe, the European Commission (EC) has intensified its efforts to uncover anticompetitive practices, while in the UK, the Competition and Markets Authority (CMA) has expanded its enforcement capabilities under the Digital Markets, Competition and Consumers Act 2024 (DMCC), which came into force in January 2025.

Adapting to a changing landscape

The nature of dawn raids is evolving rapidly, driven by technological advancements and changes in workplace dynamics. Hybrid working models, cloud computing and the proliferation of digital communication tools have added layers of complexity to investigations. Authorities are now capable of conducting remote raids, accessing data through virtual platforms or directly from IT systems. It is increasingly common for multiple sites to be raided simultaneously, including employees’ homes.

In response, companies must ensure that their internal protocols are updated to reflect these new realities. Traditional procedures – such as instructing reception staff on how to respond to investigators and ensuring compliance teams shadow officials during the search – remain important. However, protocols must now also address how to manage remote forensic investigations and searches conducted at private residences.

Employees should be trained to cooperate with investigators without volunteering unsolicited information. They must not obstruct the search in any way, and designated personnel should be assigned in advance to supervise the inspection. These individuals should be prepared to take detailed notes of the officials’ actions and ensure that any requests for information or questioning are directed to legal counsel. It is vital that no documents or data – whether physical or electronic – are destroyed, altered or concealed during the raid. Communication with external parties about the raid should also be strictly prohibited.

Where possible, employees should request clarification on the scope and purpose of the investigation. Copies of any warrants, court orders or other authorising documents should be obtained and reviewed by legal counsel. These documents are essential for understanding the legal basis of the raid and ensuring that the authorities do not exceed their remit.

Leveraging technology and legal safeguards

The increasing reliance on electronically stored information has prompted regulators to enhance their digital forensic capabilities. For example, the EC has begun using artificial intelligence (AI) tools to analyse large volumes of data more efficiently. These tools can identify patterns and flag potentially relevant documents, significantly accelerating the review process.

In turn, companies are also adopting AI-powered legal technologies to support their compliance efforts. These tools can help legal teams quickly identify and assess relevant information, improving their ability to respond effectively during a raid. However, the use of such technologies must be carefully managed to ensure that they do not inadvertently compromise legal privilege or data protection obligations.

The DMCC has granted the CMA broader powers to obtain electronic information stored in the cloud or accessible from domestic premises. It also introduced ‘seize and sift’ powers, allowing investigators to temporarily remove materials for off-site review. These developments underscore the importance of having robust data governance policies in place, including clear protocols for managing access to sensitive information.

Recent enforcement actions highlight the consequences of non-compliance. In 2024, the EC fined a fragrance manufacturer €15.9m for obstructing a dawn raid after a senior employee deleted WhatsApp messages containing business-sensitive information. Similarly, the French antitrust authority imposed a €900,000 fine on a company for providing misleading information during a raid. These cases serve as stark reminders that obstructing an investigation can result in severe penalties for both companies and individuals.

Proactive readiness

Dawn raids are becoming more frequent, more sophisticated and more invasive. As regulatory scrutiny intensifies across Europe, Asia and South America, companies must remain vigilant and proactive. The EC has signalled that 2025 will see an increase in cartel infringement decisions, particularly those involving the unlawful exchange of information facilitated by automated tools and algorithms.

To navigate this challenging environment, businesses must ensure that their dawn raid protocols are comprehensive, up to date and tailored to the realities of modern working practices. This includes preparing for remote inspections, training employees on their rights and responsibilities, and leveraging technology to support compliance efforts.

Ultimately, being dawn raid ready is not just about avoiding penalties – it is about protecting the integrity of the business, maintaining stakeholder trust and demonstrating a commitment to lawful and ethical conduct.

© Financier Worldwide

BY

Richard Summerfield