Competition Law

Competition law ensures that businesses compete with each other fairly. In the UK, breaches of competition law can result in fines and potential criminal sanctions for individuals.

The secretary of State for Business, Innovation and Skills sets the overall policy framework for competition. UK competition cases are dealt with by a number of different Acts and Regulations. The Competition Act 1998 introduces two main prohibitions; prohibition of anti–competitive agreements and a prohibition of abuse of a dominant position in a market. It also targets issues arising from public sector or utility procurement and sector regulation. The Enterprise Act 2002 includes a merger of competition and regulatory work.

Cartel activity is prohibited by UK competition law. These arrangements are normally between at least two competing organisations, designed to reduce competition between them, thereby increasing prices/profit beyond the level that could be achieved competitively. You may hear this referred to more generally as bid/tender rigging, price fixing, allocation of particular market shares or exchange of confidential information. Failure to prohibit such practices would lead to higher prices and a loss of customer’s free choice.

It is crucial to be aware about forms of co-operation with other companies or organisations that could lead to a breach of competition regulations.