Chapter I prohibition meaning

This Checklist highlights the key matters to consider when preparing new Research and Development (R&D) agreements, or revising existing R&D agreements, to determine whether they fall within the block exemption available under the Competition Act 1998 (Research and Development Agreements Block Exemption) Order 2022 (UK R&D BEO), SI 2022/1271. It is not a full guide to the UK R&D BEO, but is intended for situations where a commercial lawyer wishes to be confident that an R&D agreement sits within the UK R&D BEO and aligns with the CMA Guidance on Horizontal Agreements (2023 Horizontal Guidance). Introduction to the UK R&D BEO Any agreement that influences trade or restricts competition in the UK may fall under the prohibition on anti-competitive agreements in Chapter I of the Competition Act 1998 (CA 1998) (the Chapter I prohibition)...

This Checklist summarises the key considerations when preparing new vertical agreements, or revising existing ones, to determine whether they benefit from the block exemption in The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, SI 2022/516 (UK VABEO). It is not a full exposition of UK VABEO, but a tool for commercial lawyers to check that a vertical arrangement falls within UK VABEO (together with any accompanying guidance). For more detail, refer to: CMA Guidance: UK VABEO. A flowchart appears at the end of this Checklist, outlining the principal steps for assessing whether an agreement is covered by UK VABEO. Introduction to UK VABEO Agreements that affect trade and limit competition in the UK may fall within the prohibition on anti-competitive agreements contained in Chapter I of the Competition Act 1998 (CA 1998)...

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...

In this issue: UK antitrust UK mergers UK private actions UK market studies UK subsidy control EU antitrust EU State aid EU digital markets LexTalk®Competition: a Lexis®Nexis community Daily and weekly news alerts New and updated content Caselex UK antitrust CAT holds Deckers breached the Chapter I prohibition concerning restrictions on the sale HOKA running shoe brand The CAT handed down its judgment in Up & Running (UK) Limited v Deckers UK Ltd, a damages action brought by Up and Running (UK) Limited (Up & Running) against Deckers UK Limited (Deckers), alleging an infringement of the Chapter I prohibition under the Competition Act 1998 in relation to the sale of the HOKA running shoe brand. The CAT found that Deckers infringed the Chapter I prohibition by restricting the sale of those running shoes. Background Up & Running operates a retail business focused on specialist running footwear and accessories. Deckers...

In this edition: UK antitrust EU antitrust EU Foreign Subsidies Regulation EU State aid Daily and weekly news alerts LexTalk®Competition: a Lexis®Nexis community New and updated content Caselex UK antitrust Public Transport Ticketing Schemes Block Exemption: CMA launches consultation on proposed recommendations The CMA has opened a consultation on its provisional recommendation to advise the Secretary of State for Business and Trade that the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order (the Order) should remain in force beyond its current term as a continuing block exemption. This follows an April 2024 call for inputs on the Order. First brought into effect in 2001, the Order removes specified integrated ticketing arrangements—agreed between transport operators—from the scope of the Chapter I prohibition in the Competition Act, and it was most recently extended in 2016. The block exemption offers transport operators greater legal certainty to develop and provide ticketing schemes that enable passengers to purchase...

Antitrust Court of Appeal’s judgment dismissing Phones4U’s appeal regarding allegations of collusion against EE, Vondafone and O2 The Court of Appeal delivered its judgment in Phones 4U Ltd v EE Ltd & Ors, determining an appeal from the High Court’s decision that had dismissed a standalone claim issued by Phone4U Limited (Phones 4U) against a number of UK mobile network operators (MNOs) and their parent companies. Phones 4U alleged infringements of Article 101 TFEU and the Chapter I prohibition under the Competition Act 1998, contending there was coordination to cease dealing with it. The Court of Appeal dismissed the appeal in full. Background Phones 4U was one of the two leading retail intermediaries for mobile telephones in the UK until it went into administration in September 2014. Its collapse followed decisions by three MNOs not to renew contracts for the supply of connections through the retailer. Phones 4U had a series of arrangements with the MNOs for supplying connections to retail customers, under which it could arrange...

The creation of the Competition and Market Authority (CMA) in 2013 The establishment of the Competition and Market Authority (CMA) in 2013 coincided with an overhaul of a component of the criminal cartel offence that prosecutors had to prove to convict directors and officers. When the Enterprise and Regulatory Reform Act 2013 (ERRA 2013) commenced on 1 April 2014, the dishonesty element of the cartel offence was scrapped, marking a radical change to what prosecutors had previously been required to establish. Under the revised regime, an individual commits the offence by agreeing, with one or more persons, that two or more undertakings will take part in specified prohibited cartel arrangements (price-fixing, market-sharing, bid-rigging, or limiting output), regardless of dishonesty. Any such arrangements must have occurred in the UK to be caught. As explained further below, this shift is partly offset by new exceptions, covering notification of customers, publication of arrangements, and compliance with a legal requirement, as well as defences, including that the accused did not intend to conceal...

This Practice Note This Practice Note distils rulings on when restraint of trade provisions (restrictive covenants) in commercial and corporate agreements are enforceable. For fuller detail on restrictive covenants and the restraint of trade doctrine in commercial arrangements, also see Practice Note: Restrictive covenants and restraint of trade in commercial contracts. For a companion Practice Note outlining decisions on the enforceability of post-termination restraints (restrictive covenants) in employment contracts, see Practice Note: Decisions on post-termination restrictions and garden leave in employment contracts. This Practice Note also references certain key judgments reached under EU competition law. From 1 January 2021, EU competition law no longer applies directly in the UK. Where an agreement impacts trade within the UK, Chapter I of the Competition Act 1998 (CA 1998) will govern. The Chapter I prohibition bans anti-competitive agreements and is modelled on Article 101 of the Treaty on the Functioning of the European Union (TFEU). EU case-law is still likely to remain relevant, but from 1 January 2024 the Retained EU Law...

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...