C6C7C8C9C16C14C15C12C11C13C17C18C19C21C22C23C25C24C42 Part I Competition

Annotations:
Modifications etc. (not altering text)
C6

Pt. 1: certain functions made exercisable concurrently (26.11.1998 for certain purposes and prosp. otherwise) by 1984 c. 12, s. 50(3) (as substituted by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 2(6) (with s. 73); S.I. 1998/2750, art. 2)

C7

Pt. 1 (except ss. 38(1)-(6), 51) amended (1.2.2001) by 2000 c. 38, ss. 86(1)(3), 89 (with ss. 105(2)(d)(5), 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. 1

C8

Pt. 1 (except ss. 38(1)-(6), 51, 52(6) and (8) and 54) amended (1.2.2001) by 2000 c. 38, s. 86(4)(b)(5) (with ss. 105(2)(d)(5), 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. 1

Pt. 1 (except ss. 38(1)-(6), 51) amended (1.2.2001) by 2000 c. 38, s. 86(7)(b) (with ss. 105(2)(d)(5), 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. 1

C9

Pt. 1 modified (25.7.2003 for specified purposes, 29.12.2003 in so far as not already in force) by Communications Act 2003 (c. 21), ss. 371(3), 411(2) (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(2) (with art. 11)

C16

Pt. 1 certain functions made exercisable concurrently by 1998 c. 41, s. 67(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 6(2)(a))

C14

Pt. 1 certain functions made exercisable concurrently by 1991 c. 56, s. 31(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 4(2)(a))

C15

Pt. 1 certain functions made exercisable concurrently by S.I. 1992/231 (N.I. 1) art. 46(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 5(2)(a))

C12

Pt. 1 certain functions made exercisable concurrently by 1986 c. 44, s. 36A(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 1(2)(a))

C13

Pt. 1 certain functions made exercisable concurrently by 1989 c. 29, s. 43(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 3(2)(a))

C17

Pt. 1 certain functions made exercisable concurrently by S.I. 1996/275 (N.I. 2), art. 23(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 9(2)(a))

C18

Pt. 1 certain functions made exercisable concurrently (1.4.2007) by The Water and Sewerage Services (Northern Ireland) Order 2006 (S.I. 2006/3336), arts. 1(2), 29(3) (with arts. 8(8), 121(3), 307); S.R. 2007/194, art. 2(2), Sch. Pt. 2 (with Sch. 2)

C22

Pt. 1 functions made exercisable concurrently (6.4.2013) by Civil Aviation Act 2012 (c. 19), ss. 62(1)-(3), 110(1) (with s. 77(1)-(3), Sch. 10 paras. 12, 17); S.I. 2013/589, art. 2(1)-(3)

C25

Pt. 1 certain functions made exercisable concurrently by 2000 c. 8, s. 234J (as inserted (1.11.2014 for specified purposes, 1.4.2015 so far as not already in force) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 8 para. 3; S.I. 2014/2458, arts. 2(b)(aa)(i), 3(b)(v))

C24

Pt. 1 certain functions made exercisable concurrently (1.11.2014 for specified purposes, 1.4.2015 so far as not already in force) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 61(2), 148(5); S.I. 2014/2458, arts. 2(a)(i), 3(b)(ii)

C42

Pt. 1: certain functions made exercisable concurrently (26.12.2023) by Energy Act 2023 (c. 52), ss. 37, 334(3)(a) (with s. 38)

C33Chapter I Agreements

Annotations:
Modifications etc. (not altering text)

Introduction

I11 Enactments replaced.

The following shall cease to have effect—

I4a

the Restrictive Practices Court Act 1976 (c. 33),

b

the Restrictive Trade Practices Act 1976 (c. 34),

c

the Resale Prices Act 1976 (c. 53), and

d

the Restrictive Trade Practices Act 1977 (c. 19).

Annotations:
Commencement Information
I1

S. 1 partly in force; s. 1 was not in force at Royal Assent, see. s. 76(2)(3); s. 1(b) to (d) in force at 1.3.2000 by S.I. 2000/344, art. 2, Sch.

I4

S. 1(a) in force at 10.3.2013 by S.I. 2013/284, art. 2(a)

The prohibition

C322 Agreements etc. preventing, restricting or distorting competition.

C1C20C26C29C28C27C30C31C34C35C361

Subject to section 3, agreements between undertakings, decisions by associations of undertakings or concerted practices which—

a

may affect trade within the United Kingdom, and

b

have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom,

are prohibited unless they are exempt in accordance with the provisions of this Part.

2

Subsection (1) applies, in particular, to agreements, decisions or practices which—

a

directly or indirectly fix purchase or selling prices or any other trading conditions;

b

limit or control production, markets, technical development or investment;

c

share markets or sources of supply;

d

apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

e

make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

3

Subsection (1) applies only if the agreement, decision or practice is, or is intended to be, implemented in the United Kingdom.

4

Any agreement or decision which is prohibited by subsection (1) is void.

C105

A provision of this Part which is expressed to apply to, or in relation to, an agreement is to be read as applying equally to, or in relation to, a decision by an association of undertakings or a concerted practice (but with any necessary modifications).

6

Subsection (5) does not apply where the context otherwise requires.

7

In this section “the United Kingdom” means, in relation to an agreement which operates or is intended to operate only in a part of the United Kingdom, that part.

8

The prohibition imposed by subsection (1) is referred to in this Act as “the Chapter I prohibition”.

Excluded agreements

I2C393 Excluded agreements.

1

The Chapter I prohibition does not apply in any of the cases in which it is excluded by or as a result of—

a

Schedule 1 (mergers and concentrations);

b

Schedule 2 (competition scrutiny under other enactments);

c

Schedule 3 (planning obligations and other general exclusions). F14...

F1d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

The Secretary of State may at any time by order amend Schedule 1, with respect to the Chapter I prohibition, by—

a

providing for one or more additional exclusions; or

b

amending or removing any provision (whether or not it has been added by an order under this subsection).

3

The Secretary of State may at any time by order amend Schedule 3, with respect to the Chapter I prohibition, by—

a

providing for one or more additional exclusions; or

b

amending or removing any provision—

i

added by an order under this subsection; or

ii

included in paragraph 1, 2, 8 or 9 of Schedule 3.

4

The power under subsection (3) to provide for an additional exclusion may be exercised only if it appears to the Secretary of State that agreements which fall within the additional exclusion—

a

do not in general have an adverse effect on competition, or

b

are, in general, best considered under Chapter II or F27the M1Fair Trading Act 1973F27the Enterprise Act 2002.

5

An order under subsection (2)(a) or (3)(a) may include provision (similar to that made with respect to any other exclusion provided by the relevant Schedule) for the exclusion concerned to cease to apply to a particular agreement.

6

Schedule 3 also gives the Secretary of State power to exclude agreements from the Chapter I prohibition in certain circumstances.

Exemptions

4 Individual exemptions.

F161

The F2OFT may grant an exemption from the Chapter I prohibition with respect to a particular agreement if—

a

a request for an exemption has been made to F2it under section 14 by a party to the agreement; and

b

the agreement is one to which section 9 applies.

2

An exemption granted under this section is referred to in this Part as an individual exemption.

3

The exemption—

a

may be granted subject to such conditions or obligations as the F2OFT considers it appropriate to impose; and

b

has effect for such period as the F2OFT considers appropriate.

4

That period must be specified in the grant of the exemption.

5

An individual exemption may be granted so as to have effect from a date earlier than that on which it is granted.

6

On an application made in such way as may be specified by rules under section 51, the F2OFT may extend the period for which an exemption has effect; but, if the rules so provide, F2it may do so only in specified circumstances.

5 Cancellation etc. of individual exemptions.

F171

If the F3OFT has reasonable grounds for believing that there has been a material change of circumstance since F3it granted an individual exemption, F3it may by notice in writing—

a

cancel the exemption;

b

vary or remove any condition or obligation; or

c

impose one or more additional conditions or obligations.

2

If the F3OFT has a reasonable suspicion that the information on which F3it based F3its decision to grant an individual exemption was incomplete, false or misleading in a material particular, F3it may by notice in writing take any of the steps mentioned in subsection (1).

3

Breach of a condition has the effect of cancelling the exemption.

4

Failure to comply with an obligation allows the F3OFT, by notice in writing, to take any of the steps mentioned in subsection (1).

5

Any step taken by the F3OFT under subsection (1), (2) or (4) has effect from such time as may be specified in the notice.

6

If an exemption is cancelled under subsection (2) or (4), the date specified in the notice cancelling it may be earlier than the date on which the notice is given.

7

The F3OFT may act under subsection (1), (2) or (4) on F3its own initiative or on a complaint made by any person.

C376 Block exemptions.

1

If agreements which fall within a particular category of agreement are, in the opinion of the F28CMA, likely to be F19exempt agreements, the F28CMA may recommend that the Secretary of State make an order specifying that category for the purposes of this section.

2

The Secretary of State may make an order (“a block exemption order”) giving effect to such a recommendation—

a

in the form in which the recommendation is made; or

b

subject to such modifications as he considers appropriate.

3

An agreement which falls within a category specified in a block exemption order is exempt from the Chapter I prohibition.

4

An exemption under this section is referred to in this Part as a block exemption.

5

A block exemption order may impose conditions or obligations subject to which a block exemption is to have effect.

6

A block exemption order may provide—

a

that breach of a condition imposed by the order has the effect of cancelling the block exemption in respect of an agreement;

b

that if there is a failure to comply with an obligation imposed by the order, the F28CMA may, by notice in writing, cancel the block exemption in respect of the agreement;

c

that if the F28CMA considers that a particular agreement is not F18an exempt agreement, F4it may cancel the block exemption in respect of that agreement.

7

A block exemption order may provide that the order is to cease to have effect at the end of a specified period.

F208

In this section—

  • “exempt agreement” means an agreement which is exempt from the Chapter I prohibition as a result of section 9; and

  • “specified” means specified in a block exemption order.

7 Block exemptions: opposition.

F211

A block exemption order may provide that a party to an agreement which—

a

does not qualify for the block exemption created by the order, but

b

satisfies specified criteria,

may notify the F5OFT of the agreement for the purposes of subsection (2).

2

An agreement which is notified under any provision included in a block exemption order by virtue of subsection (1) is to be treated, as from the end of the notice period, as falling within a category specified in a block exemption order unless the F5OFT—

a

is opposed to its being so treated; and

b

gives notice in writing to the party concerned of F5its opposition before the end of that period.

3

If the F5OFT gives notice of F5its opposition under subsection (2), the notification under subsection (1) is to be treated as both notification under section 14 and as a request for an individual exemption made under subsection (3) of that section.

4

In this section “notice period” means such period as may be specified with a view to giving the F5OFT sufficient time to consider whether to oppose under subsection (2).

C388 Block exemptions: procedure.

1

Before making a recommendation under section 6(1), the F29CMA must—

a

publish details of F6its proposed recommendation in such a way as F6it thinks most suitable for bringing it to the attention of those likely to be affected; and

b

consider any representations about it which are made to F6it.

2

If the Secretary of State proposes to give effect to such a recommendation subject to modifications, he must inform the F29CMA of the proposed modifications and take into account any comments made by the F29CMA .

3

If, in the opinion of the F29CMA , it is appropriate to vary or revoke a block exemption order F7it may make a recommendation to that effect to the Secretary of State.

4

Subsection (1) also applies to any proposed recommendation under subsection (3).

5

Before exercising F6its power to vary or revoke a block exemption order (in a case where there has been no recommendation under subsection (3)), the Secretary of State must—

a

inform the F30CMA of the proposed variation or revocation; and

b

take into account any comments made by the F30CMA .

6

A block exemption order may provide for a block exemption to have effect from a date earlier than that on which the order is made.

9F24Exempt agreements.

F221

F25An agreement is exempt from the Chapter I prohibition if it—

a

contributes to—

i

improving production or distribution, or

ii

promoting technical or economic progress,

while allowing consumers a fair share of the resulting benefit; F26and

b

does not—

i

impose on the undertakings concerned restrictions which are not indispensable to the attainment of those objectives; or

ii

afford the undertakings concerned the possibility of eliminating competition in respect of a substantial part of the products in question.

F232

In any proceedings in which it is alleged that the Chapter I prohibition is being or has been infringed by an agreement, any undertaking or association of undertakings claiming the benefit of subsection (1) shall bear the burden of proving that the conditions of that subsection are satisfied.

C4010F34F49Assimilated exemptions.

F47A1

An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in F55an assimilated block exemption regulation.

F361

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F372

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

An exemption from the Chapter I prohibition under this section is referred to in this Part as F53an assimilatedF38exemption.

4

F54An assimilatedF39exemption—

F40a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

ceases to have effect—

i

if the relevant F41F51assimilated block exemption regulation ceases to have effect; or

ii

on being cancelled by virtue of subsection (5) or (7).

5

In such circumstances and manner as may be specified in rules made under section 51, the F31CMA may—

a

impose conditions or obligations subject to which F56an assimilatedF42exemption is to have effect F43in respect of an agreement;

b

vary or remove any such condition or obligation;

c

impose one or more additional conditions or obligations;

d

cancel the exemption F44in respect of an agreement.

6

In such circumstances as may be specified in rules made under section 51, the date from which cancellation of an exemption is to take effect may be earlier than the date on which notice of cancellation is given.

7

Breach of a condition imposed by the F32CMA has the effect of cancelling the exemption.

8

In exercising F8its powers under this section, the F33CMA may require any person who is a party to the agreement in question to give F8it such information as F8it may require.

F459

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4510

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4511

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4612

 In this Part, “F52assimilated block exemption regulation” means the following regulations as amended from time to time—

a

Council Regulation (EC) 169/2009 applying rules of competition to transport by rail, road and inland waterway;

b

Commission Regulation (EC) 906/2009 on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia);

c

Commission Regulation (EU) 330/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices;

d

Commission Regulation (EU) 461/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector;

e

Commission Regulation (EU) 1217/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of research and development agreements;

f

Commission Regulation (EU) 1218/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of specialisation agreements;

g

Commission Regulation (EU) 316/2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements.

C4110AF35Power to vary etc F50assimilated block exemption regulations

1

The Secretary of State may by regulations vary or revoke F57an assimilated block exemption regulation.

2

In exercising the power under subsection (1), the Secretary of State must have regard to the conditions specified in section 9(1) for exemption from the Chapter 1 prohibition.

3

If, in the opinion of the CMA, it is appropriate to vary or revoke F58an assimilated block exemption regulation, the CMA may make a recommendation to that effect to the Secretary of State.

4

Before making a recommendation under subsection (3), the CMA must—

a

publish details of its proposed recommendation in such a way as it thinks most suitable for bringing it to the attention of those likely to be affected; and

b

consider any representations about it which are made to it.

5

Before exercising the power to vary or revoke F59an assimilated block exemption regulation (in a case where there has been no recommendation under subsection (3)), the Secretary of State must—

a

inform the CMA of the proposed variation or revocation; and

b

take into account any comments made by the CMA.

F4811 Exemption for certain other agreements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification

I312 Requests for F9OFT to examine agreements.

F151

Sections 13 and 14 provide for an agreement to be examined by the F9OFT on the application of a party to the agreement who thinks that it may infringe the Chapter I prohibition.

2

Schedule 5 provides for the procedure to be followed—

a

by any person making such an application; and

b

by the F9OFT, in considering such an application.

3

The Secretary of State may by regulations make provision as to the application of sections 13 to 16 and Schedule 5, with such modifications (if any) as may be prescribed, in cases where the F9OFT—

a

has given a direction withdrawing an exclusion; or

b

is considering whether to give such a direction.

C213 Notification for guidance.

F151

A party to an agreement who applies for the agreement to be examined under this section must—

a

notify the F10OFT of the agreement; and

b

apply to F10the OFT for guidance.

2

On an application under this section, the F10OFT may give the applicant guidance as to whether or not, in F10its view, the agreement is likely to infringe the Chapter I prohibition.

3

If the F10OFT considers that the agreement is likely to infringe the prohibition if it is not exempt, F10its guidance may indicate—

a

whether the agreement is likely to be exempt from the prohibition under—

i

a block exemption;

ii

a parallel exemption; or

iii

a section 11 exemption; or

b

whether F10it would be likely to grant the agreement an individual exemption if asked to do so.

4

If an agreement to which the prohibition applies has been notified to the F10OFT under this section, no penalty is to be imposed under this Part in respect of any infringement of the prohibition by the agreement which occurs during the period—

a

beginning with the date on which notification was given; and

b

ending with such date as may be specified in a notice in writing given to the applicant by the F10OFT when the application has been determined.

5

The date specified in a notice under subsection (4)(b) may not be earlier than the date on which the notice is given.

C314Notification for a decision.

F151

A party to an agreement who applies for the agreement to be examined under this section must—

a

notify the F11OFT of the agreement; and

b

apply to F11the OFT for a decision.

2

On an application under this section, the F11OFT may make a decision as to—

a

whether the Chapter I prohibition has been infringed; and

b

if it has not been infringed, whether that is because of the effect of an exclusion or because the agreement is exempt from the prohibition.

3

If an agreement is notified to the F11OFT under this section, the application may include a request for the agreement to which it relates to be granted an individual exemption.

4

If an agreement to which the prohibition applies has been notified to the F11OFT under this section, no penalty is to be imposed under this Part in respect of any infringement of the prohibition by the agreement which occurs during the period—

a

beginning with the date on which notification was given; and

b

ending with such date as may be specified in a notice in writing given to the applicant by the F11OFT when the application has been determined.

5

The date specified in a notice under subsection (4)(b) may not be earlier than the date on which the notice is given.

C415 Effect of guidance.

F151

This section applies to an agreement if the F12OFT has determined an application under section 13 by giving guidance that—

a

the agreement is unlikely to infringe the Chapter I prohibition, regardless of whether or not it is exempt;

b

the agreement is likely to be exempt under—

i

a block exemption;

ii

a parallel exemption; or

iii

a section 11 exemption; or

c

F12it would be likely to grant the agreement an individual exemption if asked to do so.

2

The F12OFT is to take no further action under this Part with respect to an agreement to which this section applies, unless—

a

F12it has reasonable grounds for believing that there has been a material change of circumstance since F12it gave F12its guidance;

b

F12it has a reasonable suspicion that the information on which F12it based F12its guidance was incomplete, false or misleading in a material particular;

c

one of the parties to the agreement applies to F12it for a decision under section 14 with respect to the agreement; or

d

a complaint about the agreement has been made to F12it by a person who is not a party to the agreement.

3

No penalty may be imposed under this Part in respect of any infringement of the Chapter I prohibition by an agreement to which this section applies.

4

But the F12OFT may remove the immunity given by subsection (3) if—

a

F12it takes action under this Part with respect to the agreement in one of the circumstances mentioned in subsection (2);

b

F12it considers it likely that the agreement will infringe the prohibition; and

c

F12it gives notice in writing to the party on whose application the guidance was given that F12it is removing the immunity as from the date specified in F12its notice.

5

If the F12OFT has a reasonable suspicion that information—

a

on which F12it based F12its guidance, and

b

which was provided to F12it by a party to the agreement,

was incomplete, false or misleading in a material particular, the date specified in a notice under subsection (4)(c) may be earlier than the date on which the notice is given.

C516 Effect of a decision that the Chapter I prohibition has not been infringed.

F151

This section applies to an agreement if the F13OFT has determined an application under section 14 by making a decision that the agreement has not infringed the Chapter I prohibition.

2

The F13OFT is to take no further action under this Part with respect to the agreement unless—

a

F13it has reasonable grounds for believing that there has been a material change of circumstance since F13it gave F13its decision; or

b

F13it has a reasonable suspicion that the information on which F13it based F13its decision was incomplete, false or misleading in a material particular.

3

No penalty may be imposed under this Part in respect of any infringement of the Chapter I prohibition by an agreement to which this section applies.

4

But the F13OFT may remove the immunity given by subsection (3) if—

a

F13it takes action under this Part with respect to the agreement in one of the circumstances mentioned in subsection (2);

b

F13it considers that it is likely that the agreement will infringe the prohibition; and

c

F13it gives notice in writing to the party on whose application the decision was made that F13it is removing the immunity as from the date specified in F13its notice.

5

If the F13OFT has a reasonable suspicion that information—

a

on which F13it based F13its decision, and

b

which was provided to F13it by a party to the agreement,

was incomplete, false or misleading in a material particular, the date specified in a notice under subsection (4)(c) may be earlier than the date on which the notice is given.