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.
