Competition regime: Chapter I prohibition

This Practice note considers the scope and application of the Chapter I prohibition contained in the Competition Act 1998 to commercial agreements. Chapter I prohibits agreements that have as their object or effect the restriction, prevention or distortion of competition within the UK, and which have an effect on trade within the UK. Definitions of each of these elements is provided, together with guidance on exclusions to the prohibition and the risks of infringement. A checklist provides guidelines on handling requests for information from, and investigations by, the Office of Fair Trading.

In March 2012 the government  announced its decision on proposals to reform the UK competition regime. The government decided to establish a new single Competition and Markets Authority to replace the OFT and Competition Commission.  The government  also decided on various, largely procedural,  changes to strengthen the mergers, markets and antitrust enforcement regimes. For further information see Government decisions on establishment of Competition and Markets Authority and reform of UK competition regime.  These changes will be implemented by the Enterprise and Regulatory Reform Act 2013 (see Enterprise and Regulatory Reform Bill 2012 -13: competition tracker).

Lesley Ainsworth, Hogan Lovells International LLP

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