Competition Act 1998
What the Competition Act covers
The Competition Act 1998 came into force on the 1 March 2000.
Its aim is to create a regulatory framework that is tough on those that seek to restrain competition whilst allowing those who compete fairly the opportunity to thrive. It outlaws two forms of anti competitive behaviour:
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Chapter I: prohibition of agreements, decisions or concerted practices that have as their effect the prevention, restriction or distortion of trade within the UK. This prohibition is based on Article 101 of the EC Treaty; and
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Chapter II: prohibition of an abuse of a dominant position in a market, based on Article 102 of the EC Treaty.
Key aspects of the new legislation are:
• anti-competitive agreements, cartels and abuses of a dominant position are now unlawful from the outset;
• businesses which are found to be in breach of the prohibitions are liable to financial penalties of up to 10% of UK annual turnover;
• gives those competitors and customers who have been economically harmed as a result of proven anti-competitive behaviour the power to seek damages from the Competition Appeals Tribunal
• gives the Director of the Office of Fair Trading significant powers to actively root out anti-competitive behaviour; including the ability to launch 'dawn raids', and to enter premises with reasonable force;
• Allows the OFT the use of leniency provisions to expose cartels
