11 Sep 2021


Given the serious consequences of non-compliance, undertakings should regularly check whether the undertaking`s practices and agreements are compatible with competition law. For every company, and especially for every company that has a significant share of the markets in which it operates, it is essential to encourage employees to understand what kind of behaviour is and is not allowed by competition law. The Competition and Markets Authority (CMA) is the uk`s leading competition law enforcement authority, although there are a number of sectoral regulatory authorities with concurrent powers to enforce competition law in their respective sectors. These include ACF for financial services, Ofgem for the electricity sector and ofwat for the water sector. One of the practical ways to promote employees` understanding of competition law is for a company to actively develop and implement a company-specific competition directive and programme, as well as staff training and other methods of risk management and reduction. Not only does this minimise the risk of not being compliant at all, but if a company is under investigation for anti-competitive behaviour, evidence of a competition policy can be taken into account by the CMA or the European Commission and lead to a reduction in the fine. Under the law, horizontal agreements are classified in a special category and are subject to the unfavourable presumption of being anti-competitive. This is also called the “in itself” rule. This means that, if a horizontal agreement is concluded pursuant to Article 3(3). 3 of the Act provides that such an agreement is anti-competitive and substantially affects competition1. In Shri Shamsher Kataria v Honda Siel Cars India Ltd.

& Ors3, the concept of vertical agreements, including exclusive supply agreements, exclusive distribution agreements and refusal of transactions, was examined by the Commission. Under the law, agreements, contracts, agreements and agreements have similar meanings. .

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