Background & Framework
Background
Competition Law, United Kingdom. The United Kingdom law on competition applies to Northern Ireland. Prior to 1998, the principle competition legislation was comprised in the Restrictive Trade Practices Act, 1976 and the Resale Prices Act 1976. This consolidated earlier legislation.
When the Office of Fair Trading was established 1973, the Director General of Fair Trading became Registrar under the restrictive practices legislation.
The restrictive practices legislation was technical and formalistic. Agreements within a scope were registerable and a registerable agreement which is not registered was void.
The Restrictive Practices Court considered whether registered agreements were in the public interest. The Court could declare the restrictions not to be in the public interest and to be accordingly void.
The apparent lack of effectiveness of the legislation, the government decided in 1996 to enact legislation by way of analogy to the EU competition law prohibition.
Following change of government in 1997, the Labour Government introduced the Competition Act, 1998.
The Competition Act 1998.
The 1998 Act refers to the prohibition on anticompetitive agreements as the Chapter I prohibition. It refers to the prohibition on abusive dominant position as the Chapter II prohibition.
The Chapter I prohibition prohibits agreements, decisions and concerted practice between or by and between undertakings or associations of undertakings, which are implemented in the UK, which have the object or effect of prevention, restriction or distortion of competition in the UK.
The legislation provides that in determination of issues in respect of the prohibition, it should be interpreted in the same manner as the corresponding EU provisions. Judgments of the Competition Appeal Tribunal follow EU case law and practice.
Chapter III of the 1998 Act provides for investigation and enforcement of the prohibition by the Competition and Markets Authority. Investigations may be initiated where there is reasonable grounds for suspecting that the legislation has been breached. The powers of investigation are similar to those afforded to the EU Commission.
The CMA may make interim measures. It may impose a fine of up to 10% of worldwide turnover on undertakings which infringes the prohibition on anticompetitive agreements. Certain small agreements are not subject to imposition of penalties for breach.
The Competition Appeals Tribunal was established by the Enterprise Act 2002. It acts as an appeals body in respect of decisions by the CMA. Further appeals may be taken from the Competition Appeals Tribunal on a point of law to the Court of Appeal in England and Wales or Northern Ireland respectively.