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Competition Law

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Matched with specialist competition law solicitors with proven track records.

What is Competition Law?

Competition law ensures fair markets and prevents anti-competitive practices. CMA enforcement is increasing with significant penalties for cartels and abuse of dominance, making specialist competition law advice essential for businesses operating in competitive markets.

What Our Competition Law Solicitors Can Help With

  • Merger Control: CMA merger clearance and competition assessment
  • Anti-Trust Compliance: Competition law compliance programs and training
  • Cartel Investigations: Defending cartel investigations and leniency applications
  • Abuse of Dominance: Market dominance assessment and conduct compliance
  • Distribution Agreements: Vertical agreements and distribution compliance
  • Joint Ventures: Competition law assessment of strategic alliances
  • State Aid: Subsidy control and state aid compliance
  • Competition Litigation: Follow-on damages claims and private enforcement

UK Competition Law Framework

Competition Act 1998:

  • Chapter I Prohibition: Anti-competitive agreements and practices
  • Chapter II Prohibition: Abuse of dominant market position
  • Exemptions: Block exemptions and individual exemptions
  • Penalties: Financial penalties up to 10% of global turnover
  • Director Disqualification: Personal liability for company directors

Enterprise Act 2002:

  • Merger control regime and thresholds
  • Market investigation powers
  • Criminal cartel offence
  • Consumer enforcement powers
  • Competition Appeal Tribunal jurisdiction

Merger Control and Clearance

CMA Merger Thresholds:

  • Turnover test: UK turnover exceeding £70 million
  • Share of supply test: 25% market share in goods or services
  • Anticipated mergers: Transactions not yet completed
  • Completed mergers: Transactions within 4 months of completion

Merger Assessment Process:

  • Phase 1 review: Initial competition assessment (40 working days)
  • Phase 2 investigation: In-depth investigation (24 weeks)
  • Remedies: Structural or behavioural remedies to address concerns
  • Prohibition: Blocking mergers that substantially lessen competition

Anti-Competitive Agreements

Hardcore Restrictions (Per Se Illegal):

  • Price-fixing agreements between competitors
  • Market sharing and customer allocation
  • Output restriction and production quotas
  • Bid rigging and tender manipulation
  • Information exchanges facilitating coordination

Vertical Agreements Assessment:

  • Resale price maintenance restrictions
  • Exclusive dealing and territory restrictions
  • Selective distribution systems
  • Non-compete obligations
  • Market share thresholds and safe harbours

Abuse of Dominance

Market Dominance Assessment:

  • Market definition and relevant product markets
  • Market share analysis and concentration
  • Barriers to entry and expansion
  • Buyer power and countervailing forces
  • Potential competition assessment

Abusive Conduct Examples:

  • Predatory pricing below cost
  • Excessive pricing and unfair terms
  • Refusal to supply and essential facilities
  • Exclusive dealing and loyalty rebates
  • Bundling and tying arrangements
  • Margin squeeze strategies

Competition Enforcement and Penalties

CMA Investigation Powers:

  • Dawn raids and document production orders
  • Witness interviews and oral hearings
  • Information gathering and market studies
  • Interim measures and behavioural remedies
  • Settlement procedures and early resolution

Financial Penalties:

  • Maximum penalty: 10% of worldwide group turnover
  • Penalty calculation: Step-by-step methodology
  • Aggravating factors: Role as leader, repeat offences
  • Mitigating factors: Cooperation, compliance programs
  • Leniency policy: Immunity and penalty reductions

Leniency and Settlement

Leniency Applications:

  • Type A immunity: First to report unknown cartel
  • Type B immunity: First to provide compelling evidence
  • Penalty reductions: Up to 50% reduction for cooperation
  • Marker system: Protecting position while gathering evidence
  • Corporate statements: Protecting sensitive information

Settlement Procedures:

  • Early resolution and streamlined process
  • Penalty discounts for admission and cooperation
  • Negotiated outcomes and behavioural commitments
  • Fast-track procedures for clear-cut cases
  • Public interest and consumer benefit considerations

Private Competition Litigation

Follow-On Damages Claims:

  • Claims following CMA infringement decisions
  • Collective proceedings and opt-out class actions
  • Individual damages assessment and quantification
  • Passing-on defence and indirect purchasers
  • Joint and several liability of cartel members

Stand-Alone Claims:

  • Private enforcement without prior infringement decision
  • Burden of proof and evidence requirements
  • Economic analysis and expert evidence
  • Interim relief and urgent applications
  • Settlement incentives and alternative dispute resolution

Sector-Specific Competition Issues

Digital Markets:

  • Platform competition and two-sided markets
  • Data and privacy competition concerns
  • Killer acquisitions and innovation harm
  • Algorithmic pricing and coordination
  • Digital Markets Unit regulatory oversight

Healthcare and Pharmaceuticals:

  • Patent settlements and pay-for-delay agreements
  • NHS procurement and competitive tendering
  • Pharmaceutical pricing and market access
  • Generic entry and biosimilar competition
  • Research and development collaborations

Financial Services:

  • Banking and payment systems competition
  • Insurance industry coordination
  • Information sharing and benchmarking
  • Regulatory coordination and state measures
  • Open banking and fintech innovation

Competition Compliance Programs

Compliance System Elements:

  • Competition law policies and procedures
  • Risk assessment and high-risk activity identification
  • Staff training and awareness programs
  • Legal privilege and document retention
  • Monitoring and auditing mechanisms
  • Reporting systems and escalation procedures

Industry-Specific Training:

  • Sales team guidance on pricing discussions
  • Trade association participation protocols
  • Joint venture and partnership assessments
  • Distribution agreement compliance
  • Digital platform and algorithm governance

Competition Law Costs

Compliance and Training:

  • Competition compliance program: £15,000-£75,000
  • Staff training programs: £5,000-£25,000
  • Competition law audit: £10,000-£50,000
  • Agreement assessment: £2,000-£15,000

Merger Control:

  • Phase 1 merger clearance: £50,000-£200,000
  • Phase 2 investigation: £200,000-£1 million
  • Economic analysis: £25,000-£200,000
  • CMA filing fees: £40,000-£160,000

Investigation Defence:

  • CMA investigation representation: £250,000-£2 million
  • Dawn raid response: £50,000-£200,000
  • Leniency application: £100,000-£500,000
  • Settlement negotiations: £75,000-£400,000

Why Choose SolicitorConnect for Competition Law

  • Competition Law Specialists: Solicitors focusing exclusively on competition and antitrust law
  • CMA Experience: Proven track record in CMA investigations and proceedings
  • Economic Expertise: Close relationships with leading competition economists
  • International Reach: Coordination with competition authorities worldwide
  • Commercial Understanding: Practical solutions that support business strategy
  • Crisis Management: Rapid response to dawn raids and urgent investigations

Professional competition law advice is essential for navigating complex antitrust requirements while supporting competitive business strategies in dynamic markets.

This information is for general guidance only and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified solicitor.

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Frequently Asked Questions

Common questions about competition law and how our solicitors can help

Competition law prevents anti-competitive practices that harm consumers and distort markets. The Competition Act 1998 prohibits anti-competitive agreements (like price-fixing) and abuse of market dominance. Enterprise Act 2002 covers merger control and market investigations. Violations can result in fines up to 10% of global turnover, director disqualification, and criminal prosecution for cartel offences. Competition law affects all businesses through pricing policies, supplier agreements, distribution arrangements, and competitor interactions.

CMA clearance is required if your merger meets jurisdictional thresholds: UK turnover exceeding £70 million or gaining 25% market share in any goods/services. The CMA can investigate anticipated mergers (before completion) or completed mergers (within 4 months). Even transactions below thresholds may be investigated if they raise competition concerns. Phase 1 review takes 40 working days, potentially followed by Phase 2 in-depth investigation taking 24 weeks. Professional advice is essential for complex transactions.

Hardcore anti-competitive practices include price-fixing, market sharing, output restrictions, bid rigging, and certain information exchanges between competitors. These are prohibited per se regardless of market effects. Other practices like exclusive dealing, resale price maintenance, and loyalty rebates are assessed based on market impact. Abuse of dominance includes predatory pricing, excessive pricing, refusal to supply, and bundling. Professional competition law advice helps ensure business practices comply with complex competition rules.

Contact a competition law solicitor immediately - CMA dawn raids require urgent professional assistance. Cooperate fully as obstruction is a criminal offence, but protect your legal rights. Investigators can search premises, seize documents, copy electronic data, and require explanations. Ensure someone senior is present, take detailed notes, preserve privilege, and avoid speculation or admissions. Professional representation during dawn raids significantly improves outcomes and protects your interests throughout the investigation.

Leniency offers immunity or penalty reductions for cartel participants who cooperate with CMA investigations. Type A immunity is available for first to report unknown cartels, Type B for first to provide compelling evidence of known cartels. Penalty reductions up to 50% are available for later cooperation. Leniency applications must be made carefully as they involve admitting wrongdoing. Professional advice is essential to assess eligibility, timing, and strategy for leniency applications.

Competition law penalties are severe with maximum fines of 10% of worldwide group turnover. Recent CMA fines range from £100,000 to £50 million for individual companies. Legal costs for defending investigations typically range from £250,000 to £2 million, with complex cases exceeding this. Additional costs include economic expert fees, reputation damage, follow-on civil claims, and management time. Director disqualification can prevent individuals from managing companies for 2-15 years.

Yes, effective competition compliance programs are essential for businesses operating in competitive markets. Programs should include written policies, risk assessments, staff training, monitoring procedures, and incident reporting systems. Focus on high-risk activities like competitor contacts, pricing decisions, distribution agreements, and trade association participation. Regular training for sales and commercial teams is crucial. Compliance programs can mitigate penalties if violations occur and demonstrate commitment to lawful competition.

Abuse of dominance occurs when companies with significant market power engage in conduct that harms competition. Market dominance typically requires 40-50%+ market share plus other factors like barriers to entry. Abusive conduct includes predatory pricing, excessive pricing, refusal to supply, exclusive dealing, bundling, and margin squeeze. Dominant companies have special responsibilities and must avoid conduct that could eliminate competitors or foreclose markets. Professional assessment of market position and business practices is essential for dominant companies.

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