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 26 July 2008
Department for Innovation, Universities and Skills (DIUS)
 
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Competition Act 1998

The Competition Act 1998 came into force on the 1 March 2000. It introduces two main prohibitions:

Chapter I: a prohibition of anti-competitive agreements, based closely on Article 81 of the EC treaty; and

Chapter II: a prohibition of abuse of a dominant position in a market, based closely on Article 82 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 infringe the prohibitions are liable to financial penalties of up to 10% of UK turnover for up to 3 years ;

• competitors and customers are entitled to seek damages;

• the Director General of Fair Trading has new powers to step in at the outset to stop anti-competitive behaviour;

• investigators are able to launch 'dawn raids', and to enter premises with reasonable force; and

• the new leniency policy will make it easier for cartels to be exposed.

The intention is to create a regulatory framework that is tough on those who seek to impair competition but allows those who do compete fairly the opportunity to thrive.

© Crown copyright 2008