Competition Act 1998

Summary

The Competition Act 1998 is the primary UK statute prohibiting anti-competitive agreements and abuse of a dominant position. Modelled closely on Articles 101 and 102 of the Treaty on the Functioning of the European Union, it introduced the 'Chapter I prohibition' against agreements that prevent, restrict or distort competition, and the 'Chapter II prohibition' against abuse of a dominant market position. The Competition and Markets Authority (CMA) enforces the Act with power to impose fines of up to 10% of worldwide turnover.

Key Points

• Chapter I prohibition — anti-competitive agreements, decisions, and concerted practices (s.2)
• Chapter II prohibition — abuse of a dominant position in a market (s.18)
• Individual exemptions available if agreements improve production/distribution and benefit consumers (s.9)
• Block exemptions may be granted by the Secretary of State (s.6–s.8)
• CMA has power to investigate and impose penalties of up to 10% of worldwide turnover (s.36)
• Private actions — persons harmed may seek damages in the Competition Appeal Tribunal
• Leniency regime incentivises cartel members to self-report in exchange for reduced penalties
• Chapter I prohibition: agreements that prevent, restrict, or distort competition (s.2)
• Chapter II prohibition: abuse of a dominant market position (s.18)
• CMA can impose fines of up to 10% of worldwide turnover
• Leniency programme for cartel whistleblowers
• Private actions for damages before the Competition Appeal Tribunal
• Exemptions available where agreements meet efficiency criteria (s.9)

Parts & Sections

Amendments History