The Competition Act 1998

The Competition Act came into force on 1st March 2000. The Act addresses two key areas of anti-competitive behaviour:

 

 

The Act was partly introduced as a result of continued allegations of "rip-off" Britain in areas such as retail sales, particularly by the leading supermarkets and car manufacturers.

 

The Act will be enforced by the Competition & Markets Authority. However, the utility regulators will also have the same enforcement powers in their respective industries.

 

The Act prohibits agreements which are intended to or have the effect of, "preventing, restricting or distorting competition in the UK". The Act also covers situations where there is no actual agreement, but where the actions of trade associations or companies acting together have the same effect.

 

The Act also prohibits the abuse of a dominant position in the UK or part of the UK. Such actions include, "limiting production, markets or technical development to the detriment of the consumer".

 

The Act is intended to address behaviour or practices that have an "appreciable effect on competition".