Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

Pursuant to Section 2(3) of the Act, the prohibition only applies to restrictive agreements intended to be implemented in the UK. As regards abuse of dominance, there is no express limitation on the extra-territorial application of the Act as set out in Section 2(3). Nonetheless, Section 18(3) does require that the position of dominance must be within the UK.
Competition rules apply to all industr …

Scope

Competition law in the UK is mostly governed by the Competition Act 1998 ("the 1998 Act") of 9 November 1998. This Act replaced or amended prior legislation such as the Restrictive Trade Practices Act 1976, the Resale Prices Act 1976 and relevant parts of the Competition Act 1980. It has been in force since March 2000. The aim of the 1998 reform was to introduce a prohibition against anticompetitive agreements and more generally to bring UK law more in line with EU law. Thus, the prohibitions of Chapter I and Chapter II of the Competition Act 1998 mirror those set out in Articles 101 and 102 TFEU. The provisions of the Competition Act were supplemented by those of the Enterprise Act ("the 2002 Act"), which reformed the law on mergers and changed the manner in which market investigations were carried out, while introducing criminal sanctions in order to fight cartels. Further, in an attempt to try and limit conflict between UK and EU competition law provisions, Section 60 of the Competition Act 1998 specifically allows the UK competition authorities to apply EU competition law when making decisions under the Act “as far as is possible”. Competition law in the UK was significantly amended by the Enterprise and Regulatory Reform Act (ERRA) passed on 25 April 2013, the provisions of which entered into force in April 2014. New amendments relating to damages actions were brought by the Consumer Rights Act (CRA) passed on 26 March 2015 which entered into force on 1 October 2015 and by the Claims in respect of Loss or Damage arising from Competition Infringements Regulations 2017 of 8 March 2017, which transposed into national law EU Directive No 2014/104 on damages actions.

The Competition Act 1998 deals with anticompetitive agreements and abuse of dominance. The 1998 Act also established a new competition authority called the Competition Commission. The Enterprise Act 2002, which deals with mergers and criminal offenses related to competitive behavior, reformed the organization of the UK’s Competition authorities and established the Competition Appeal Tribunal. Finally, the Enterprise and Regulatory Reform Act 2013 created a single competition body, the Competition and Markets Authority (CMA), merging the Competition Commission and the Office of Fair Trading as regards its competition functions.

On 23 June 2016, the UK decided to leave the EU. The UK 's withdrawal became a reality on 31 January 2020, with a transition period until 31 December 2020. Until then, EU law will still be applicable in the UK. Eventually, applicability of the EU rules will largely depend on whether the UK remains in the EEA, joins the EFTA or engages in bilateral negotiations with the EU. However, the current provisions of national law largely mirror the EU competition rules. Nevertheless, some unavoidable consequences will arise from Brexit: the EU block exemption regulations will no longer apply in the UK and the national courts will no longer be bound by Commission decisions. Furthermore, the Commission will no longer be able to carry out dawn raids in the UK and exchange information with national authorities. State aid rules, preventing the UK from granting selective advantages to particular undertakings will no longer apply four years after the transition period, i.e. after 31 December 2024.

Since 1 January 2021, only UK competition law (Chapters 1 and 2 of the Competition Act 1998 (CA98)) applies to agreements and conduct of undertakings that affect trade within the UK. EU competition law is no longer to be applied in the UK by the CMA and competing regulators. This is without prejudice to the application of EU competition law (Articles 101 and 102 TFEU), which will continue to apply to agreements and conduct of UK companies where they may have an effect on intra-EU trade.

Context

Pursuant to Section 2(3) of the Act, the prohibition only applies to restrictive agreements intended to be implemented in the UK. As regards abuse of dominance, there is no express limitation on the extra-territorial application of the Act as set out in Section 2(3). Nonetheless, Section 18(3) does require that the position of dominance must be within the UK.

Competition rules apply to all industrial sectors, including regulated industries such as gas, electricity, water, telecommunications and rail, but are implemented by each sector's Regulator (the Office of Gas and Electricity Markets - Ofgem, the Office of Water Services - Ofwat; the Office of Rail Regulation - ORR, the Office of Communications - Ofcom and the Civil Aviation Authority - UK CAA), who has the same powers of investigation and enforcement as the Competition and Markets Authority (CMA) in its respective field. The general duties of the Regulators are set out in their sector-specific statutes. In general, Regulators are to ensure fair competition with regard to the services they monitor. However, under the rules laid down by the Enterprise and Regulatory Reform Act 2013, the CMA is entitled to take over particular cases from a sectoral Regulator, after consultation with it, if it deems that it is better placed to do so. In addition, the Secretary of State is allowed, by order, to remove a sectoral Regulator's of all its functions under Part 1 of the 1998 Act or under Part 4 of the 2002 Act that are exercisable concurrently by it and the CMA if the Secretary of State considers that it is appropriate to do so for the purpose of promoting competition for the benefit of consumers. Finally, certain anticompetitive behavior which is under the scrutiny of another statute (e.g. the Broadcasting Act) is excluded from the scope of the Competition Act. 

In particular, with the entry into force of the Motor Vehicle Agreements Block Exemption Order ("MVBEO") on 1 June 2023 and the publication of the CMA's Guidance on Motor Vehicle Agreements on 5 June 2023, specific new rules apply to motor vehicle distribution and aftermarket activities in the UK.

The prohibitions of the Act apply to public sector bodies only insofar as they are acting as an undertaking. This means that any activities that they engage in as “non-undertakings” fall outside the scope of the prohibitions. Undertakings entrusted with operating services of general economic interest are not covered by Chapter I and II prohibitions insofar as the prohibition would obstruct the performance, in law or in fact, of the particular tasks assigned to that undertaking (Schedule 3).

On 20 October 2022, the UK government announced that the Subsidy Control Act 2022 (SCA) would take effect on 4 January 2023. This now requires certain UK subsidies to be notified to the Competition and Market Authority's Subsidy Advice Unit. Decisions by UK authorities on subsidies are subject to appeal to the UK Competition Appeal Tribunal.

Global Competition Law

1385. Scope

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Les notions juridiques connexes

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Les notions juridiques connexes

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