Chapter I Prohibition
The prohibition, under s.2 Competition Act 1998, of agreements between undertakings, decisions by associations of undertakings, or concerted practices that have as their object or effect the prevention, restriction, or distortion of competition within the UK.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Section 2 of the Competition Act 1998 prohibits agreements between undertakings, decisions by associations of undertakings, or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom, and which either affect trade within the UK (where implemented or intended to be implemented here) or are likely to have an immediate, substantial and foreseeable effect on UK trade in any other case. This prohibition is expressly referred to in the Act as 'the Chapter I prohibition'.
The prohibition applies in particular to agreements or decisions that fix prices or trading conditions, limit or control production, markets, technical development or investment, share markets or sources of supply, apply dissimilar conditions to equivalent transactions so as to disadvantage some trading parties, or tie contracts to unrelated supplementary obligations. Any agreement or decision caught by the Chapter I prohibition is void, unless it is exempt under the provisions of Part I of the Act.
Related terms
Official sources
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