Competition Law
Anti-competitive agreements, abuse of dominance, mergers, and CMA enforcement.
Introduction
Competition law in the UK is governed primarily by the Competition Act 1998 and the Enterprise Act 2002. The Competition and Markets Authority (CMA) is the principal enforcement body. UK competition law prohibits anti-competitive agreements (Chapter I prohibition, mirroring Article 101 TFEU) and abuse of a dominant market position (Chapter II prohibition, mirroring Article 102 TFEU). The merger control regime requires notification of qualifying mergers. Post-Brexit, the UK operates its own independent competition regime.
In Brief
The Competition Act 1998 prohibits two main categories of conduct: anti-competitive agreements between businesses (Chapter I — for example, price-fixing and market-sharing) and abuse of a dominant market position (Chapter II — for example, predatory pricing or refusal to supply). The CMA can impose fines of up to 10% of worldwide turnover, and individuals who participate in cartels can face criminal prosecution and up to five years in prison.
Core Principles
Chapter I Prohibition — Agreements between undertakings that prevent, restrict, or distort competition are prohibited (Competition Act 1998, s.2). This covers price-fixing, market-sharing, bid-rigging, and output limitation.
Chapter II Prohibition — Conduct by an undertaking with a dominant market position that amounts to abuse is prohibited (Competition Act 1998, s.18). Examples include excessive pricing, predatory pricing, refusal to supply, and tying.
Merger Control — The CMA has jurisdiction to review mergers where the target has UK turnover of £70m+ or the merged entity supplies/acquires 25%+ of goods/services in the UK.
Cartel Offence — Under the Enterprise Act 2002, individuals who participate in cartel arrangements (price-fixing, market-sharing, bid-rigging) can face up to 5 years' imprisonment.
Exemptions — Agreements may be exempt if they improve production or distribution, benefit consumers, are indispensable, and do not eliminate competition (parallel to Article 101(3) TFEU).
Private Enforcement — Victims of anti-competitive conduct can claim damages through the Competition Appeal Tribunal (CAT) or the courts.
Digital Markets — The Digital Markets, Competition and Consumers Act 2024 gives the CMA new powers over firms with 'strategic market status' in digital activities.
Key Statutes
Leading Cases
Argos Ltd v OFT
[2006] EWCA Civ 1318
Sainsbury's v Mastercard
[2020] UKSC 24
Common Scenarios
Competitors agree to fix prices
Price-fixing is a hardcore restriction under Chapter I of the Competition Act 1998. The CMA can impose fines of up to 10% of worldwide turnover. Individuals involved may face the criminal cartel offence under the Enterprise Act 2002.
Dominant company refuses to supply a competitor
Refusal to supply by a dominant undertaking may constitute abuse under Chapter II of the Competition Act 1998 if it eliminates competition in a downstream market. The CMA can impose fines and order the undertaking to supply.
Related Careers
Frequently Asked Questions
What is an anti-competitive agreement and is it always illegal?
An anti-competitive agreement prevents, restricts, or distorts competition — for example, price-fixing, market-sharing, or bid-rigging. These are prohibited under Chapter I of the Competition Act 1998. However, some agreements can be exempt if they create efficiencies and the benefits outweigh the harm to competition (s.9 exemption, parallel to Art 101(3) TFEU).
Can I report a suspected cartel anonymously?
Yes — you can report cartel activity to the Competition and Markets Authority (CMA) anonymously through its cartels hotline (0800 085 1664 or online). The CMA also operates a leniency programme: a cartel member who cooperates and reports first may receive full immunity from prosecution and fines. Individuals can also report to the CMA directly.
What is the CMA's merger review process?
The CMA has jurisdiction to review mergers where the target has UK turnover over £70m or the merged entity has a combined 25%+ share of supply in the UK. Phase 1 is a 40-working-day review; if competition concerns arise, the CMA can open a Phase 2 investigation lasting up to 24 weeks. The CMA can block a merger, require divestments, or accept undertakings.
Can individuals go to prison for competition law offences?
Yes — under the Enterprise Act 2002, individuals who dishonestly participate in cartels (price-fixing, market-sharing, bid-rigging) commit a criminal offence carrying up to 5 years' imprisonment and an unlimited fine. Directors can also be disqualified. The CMA has criminally prosecuted individuals for cartel offences.
Important Deadlines
Typical Costs
Official Resources
What To Do Next
Step-by-Step Guides
Know Your Rights
Common Scenarios
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