Businesses must comply with European Commission and UK competition law which affects (amongst others) the areas described below.
Certain agreements that have the effect of restricting or distorting competition within the EU are prohibited – unless they fall within certain automatic exclusions or exemptions. For example, price-fixing or market-sharing agreements between competitors that limit competition are in almost all cases prohibited.
A clause or entire agreement that is anti-competitive and does not fall within obvious exemptions will be void and unenforceable. This could threaten the entire agreement. In such circumstances, a party to an agreement may be able to make a claim for damages against the other party. Third parties affected by the agreement may also be able to claim damages. Finally, fines or other remedies could also be sought by national competition authorities or even by the European Commission.
There is no longer a process for clearing agreements with the competition authorities, so companies have to rely on their own assessment.
The above rules also apply to actions by associations of businesses or concerted practices – that is, all types of behaviours involving several parties, not just written agreements.
