Last amended by Enterprise and Regulatory Reform Act 2013 in 2013. Removed the dishonesty element from the cartel offence, replacing it with secrecy-based criteria, and merged OFT and Competition Commission into the CMA.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Enterprise Act 2002 reformed UK competition and consumer law, establishing the merger control and market investigation regimes, and introducing a criminal cartel offence. It created the framework under which the Competition and Markets Authority now operates, including powers to conduct market studies and make market investigation references. The Act also significantly reformed corporate insolvency by restricting the use of administrative receivership and promoting the rescue culture.
Key Points
- Established the Office of Fair Trading (now CMA) as the UK's primary competition authority (Part 1)
- Introduced a criminal offence of dishonest participation in cartels (s.188)
- Created a merger control regime based on 'substantial lessening of competition' test (Part 3)
- Market investigation references allow the CMA to investigate entire markets (Part 4)
- Super-complaints by designated consumer bodies (s.11)
- Reformed corporate insolvency — restricted administrative receivership (Part 10)
- Introduced Enterprise Act regime for disqualification of directors involved in competition breaches
- Established the merger control regime with CMA as decision-maker
- Criminal cartel offence: individuals face up to 5 years' imprisonment (s.188)
- Market investigation references to the CMA for features of markets preventing competition
- Super-complaints by designated consumer bodies
- Reformed corporate insolvency: abolished administrative receivership for most companies
Parts & Sections
Amendments History
2013 — Enterprise and Regulatory Reform Act 2013
Removed the dishonesty element from the cartel offence, replacing it with secrecy-based criteria, and merged OFT and Competition Commission into the CMA.
2013 — Enterprise and Regulatory Reform Act 2013
Merged the OFT and Competition Commission into the CMA. Removed the dishonesty requirement from the cartel offence.
Frequently asked questions
- What did the Enterprise Act 2002 change about UK competition law?
- The Enterprise Act 2002 reformed UK competition and consumer law by establishing merger control and market investigation regimes. It introduced a criminal cartel offence and created the framework for the Competition and Markets Authority. The Act also reformed corporate insolvency by restricting administrative receivership and promoting a rescue culture for companies.
- What is the criminal cartel offence and what are the penalties?
- Under the Act, an individual commits a criminal offence if they dishonestly agree with others to fix prices, share markets, limit supply, or rig bids. The Enterprise and Regulatory Reform Act 2013 later removed the dishonesty element, replacing it with secrecy-based criteria. Conviction on indictment can result in up to five years' imprisonment, a fine, or both.
- When must the CMA refer a merger for further investigation?
- The CMA must refer a completed merger for a Phase 2 investigation if it believes a relevant merger situation has been created and may result in a substantial lessening of competition. The CMA can also refer anticipated mergers that are not yet completed if arrangements are in progress or contemplation that would create such a situation.
- What are super-complaints and who can make them?
- The Act allowed designated consumer bodies to make super-complaints. These complaints enable the CMA to investigate entire markets if specific features of those markets are preventing, restricting, or distorting competition. This mechanism gives consumer groups a direct route to trigger market investigations.
- How did the Enterprise Act change corporate insolvency rules?
- The Act significantly reformed corporate insolvency by restricting the use of administrative receivership. It effectively abolished administrative receivership for most companies, aiming to promote a rescue culture. This change was part of broader reforms to how failing companies are handled under UK law.
- How did the 2013 Act change the competition authority structure?
- The Enterprise and Regulatory Reform Act 2013 merged the Office of Fair Trading and the Competition Commission into the Competition and Markets Authority. It also removed the dishonesty requirement from the cartel offence, replacing it with secrecy-based criteria. These changes updated the framework established by the 2002 Act.