Chapter 2 prohibition meaning

This Checklist highlights the core considerations under The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 (No 2) (MVBEO) when preparing new vertical agreements, or revising existing ones, concerning motor vehicle aftermarkets for the delivery of repair and maintenance services, or the supply of motor vehicle aftermarket goods (together, the motor vehicle aftermarket). This Checklist is not a full manual to the MVBEO, but is intended for use where a commercial lawyer seeks to verify that a vertical agreement benefits from the MVBEO (and any guidance issued under it). A flowchart appears at the end of this Checklist, outlining the principal steps to follow when determining whether an agreement is covered by the MVBEO. It focuses on vertical arrangements for repair, maintenance, and the distribution of aftermarket goods within the motor vehicle aftermarket specifically. Introduction to MVBEO Any arrangement that affects trade and limits competition in the UK may fall within the Chapter I prohibition on anti-competitive agreements in the Competition Act 1998...

Private actions The CAT issued four opt-out applications: Professor Carolyn Roberts v (1) United Utilities Water Limited (2) United Utilities Group PLC; v (1) Yorkshire Water Services Limited (2) Kelda Holdings Limited; v (1) Northumbrian Water Limited (2) Northumbrian Water Group Limited; and v (1) Anglian Water Services Limited (2) Anglian Water Group Limited. Roberts alleges sewerage undertakers abused a dominant position by providing misleading information to the Environment Agency and Ofwat about pollution incidents; see applications (United Utilities, Yorkshire Water, Northumbrian Water and Anglian Water). By order of 28 December 2023 in Richer Sounds Plc v Mastercard Incorporated and Others—an action alleging infringements of Article 101 TFEU and/or the Chapter I prohibition, stayed since July 2021—the CAT consented to withdrawal; see withdrawal of claim. By order of 22 December 2023 in PSA Automobiles SA & Others v Autoliv AB & Others—relying on the Commission’s 22 November 2017 Occupant Safety Systems decision (AT.39881) and alleging Article 101 TFEU infringements—the CAT consented to withdrawal of claims...

Mergers The CMA has issued a notice ending the previously granted extension, made under section 39(4) of the Enterprise Act 2002, to the inquiry timetable for its ongoing phase 2 review of AlphaTheta/Serato—see the case page for details. NOTE—For an overview of all current mergers before the CMA, consult the UK mergers—ongoing cases tracker. Private actions The CAT has posted the application in Bulk Mail Claim Limited v International Distribution Services Plc (formerly Royal Mail Plc), seeking to initiate collective proceedings under section 47B of the Competition Act. The claim, brought by Bulk Mail Claim Limited against International Distribution Services Plc (formerly Royal Mail Plc), relies on Ofcom’s 2018 decision that Royal Mail infringed the Chapter II prohibition of the Competition Act 1998 and Article 102 TFEU by proposing discriminatory pricing (a ruling upheld by the CMA and the Court of Appeal)—see the application. NOTE—For all publicly disclosed UK private actions currently on foot, see the UK private actions—ongoing cases tracker. Upcoming dates For forthcoming...

In this issue: UK antitrust UK private actions UK subsidy control UK mergers EU Foreign Subsidies Regulation EU Digital Markets Act Daily and weekly news alerts LexTalk®Competition: a Lexis®Nexis community Caselex UK antitrust CMA releases revised guidance on the Public Transport Ticketing Schemes Block Exemption The CMA has issued updated guidance on the Public Transport Ticketing Schemes Block Exemption (PTTSBE), capturing changes made by the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) (Amendment) Order 2025, following the CMA’s review and the Secretary of State’s acceptance of its recommendations. Background The PTTSBE removes certain integrated ticketing schemes from the scope of the Chapter I prohibition under the Competition Act 1998. Extended in 2016 for a further ten years, it was scheduled to end on 28 February 2026. In January 2025, the CMA proposed eliminating the sunset clause and broadening the meaning of ‘connecting service’ to cover trunk bus services. These proposals...

Introduction Block exemption rules offer broadly applicable safe harbours for agreements from the UK ban on anti-competitive agreements set out in Chapter I of the Competition Act 1998 (notably section 2), so long as the agreement satisfies the conditions of the relevant block exemption. Each such regime rests on the assumption that any restrictive deal within its ambit meets the four criteria in section 9 of the Competition Act 1998 required to obtain an individual exemption from section 2 (see also, Practice Note: Chapter I prohibition). As a result, a block exemption creates a safe harbour shielding restrictive arrangements from challenge under section 2 of the Competition Act 1998. Before 1 January 2023, research and development (R&D) agreements were covered by Retained Regulation (EU) 1217/2010, the Retained Research and Development Block Exemption Regulation (UK Retained R&D BER), which continued to apply in the UK as retained EU law after Brexit. The UK Retained R&D BER lapsed on 31 December 2022 and, from 1 January 2023, was superseded by (UK...

Introduction Block exemption rules offer broadly available safe harbours insulating agreements from the UK ban on anti-competitive arrangements in Chapter I (notably section 2) of the Competition Act 1998 (CA 1998), provided the agreement satisfies the conditions in the relevant block exemption regulation. Each such measure rests on the assumption that any restrictive agreement within its ambit fulfils the four criteria in CA 1998, s 9 that are required for an individual exemption from the application of CA 1998, s 2 (see also, Practice Note: Chapter I prohibition). A block exemption regulation therefore establishes a safe harbour, shielding restrictive arrangements from legal challenge under CA 1998, s 2. Before 1 January 2023, the applicable block exemption for specialisation agreements was Retained Regulation (EU) 1218/2010, the Retained Specialisation Block Exemption Regulation (UK Retained SBER), which applied in the UK as EU retained law following Brexit. The UK Retained SBER ceased to have effect on 31 December 2022 and was replaced, from 1 January 2023, by The Competition Act 1998 (Specialisation...

Vertical agreements Under section 2(1) of the Competition Act 1998 (CA 98), vertical agreements are banned. The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) has revised the language in section 2 so that, in specified situations, it captures arrangements carried out beyond the UK. The prohibition covers agreements between undertakings, concerted practices, and decisions of associations of undertakings that have as their object or effect the prevention, restriction or distortion of competition within the UK, or any part of it, and which may influence trade in the UK or a part of it where such agreements, decisions or practices are implemented, or intended to be implemented, in the UK. In all other instances, the ban extends to conduct likely to have an immediate, substantial and foreseeable impact on trade within the UK or a part of the UK. In addition, section 2(3) CA 98 requires that an agreement is implemented, or intended to be implemented, in the UK. As indicated above, the DMCC Act adjusts the scope...