Publications
Credit history information exchange between competitiors
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Julija
Varul Vilgerts Smaliukas
Until recently most businesses focused more on attraction of new customers and entering into bigger and bigger transactions. Now the every day practices and attitude towards clients has changed drastically, since, due to the interdependence of the businesses, the non-payment risk increases in geometrical progression. Most companies would have preferred to sell their goods only for prepayment, but it is not always possible to agree on such arrangement and, in that case, the financial standing of the client is of utmost importance.
There is some publicly available data on companies, which fail to comply with their payment obligations. However, this data is very limited and does not therefore resolve the non-payment issue.
The aim of the article is to provide an overview of the competition law rules, which, though to a
limited extent, allow the competitors to exchange information on their clients, who have materially delayed payments.
Jerneva, J. 2009, Credit history information exchange between competitiors.