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United Kingdom
United Kingdom
Key definition
Chapter I prohibition definition What does Chapter I prohibition mean? The rule in UK competition law that outlaws anti-competitive agreements and coordinated conduct. In practice, lawyers use it to assess horizontal or vertical agreements that risk restricting competition. It is a statutory concept: section 2 of the Competition Act 1998 (Chapter I) prohibits agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade within the UK and have as their object or effect the prevention, restriction or distortion of competition within the UK. Key features include: - Applies to “object” restraints (hardcore cartels, resale price maintenance) and “effect” cases. - Can capture conduct implemented outside the UK...
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UK Chapter I prohibition (Competition Act 1998): anti-competitive agreements—scope, object or effect, appreciability, section 9 and block exemptions, Brexit divergence, DMCCA 2024 extraterritorial reach, enforcement risks and unenforceability
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LexisNexis Competition expert
Practice notes
A key proposition underpinning UK competition law
Rival undertakings are expected to pursue their strategies independently in the marketplace. In general, head-to-head rivalry should deliver maximum consumer benefit and allocate resources most efficiently. As a result, the Competition and Markets Authority (CMA) treats with caution any arrangement liable to soften competition or lessen the commercial uncertainty that would otherwise separate competitors. Nonetheless, businesses may have sound reasons for entering agreements whose clauses or obligations risk constraining competition. That is particularly true where such arrangements are intended to create or advance beneficial outcomes (efficiencies) that would not materialise without the restriction included in the agreement. UK competition policy aims to balance safeguarding effective competition (notably by outlawing illegitimate collusion) against securing advantages that arise-and are often only attainable-through co-operation. Chapter I sets out the legal framework for this balanced appraisal, weighing the restrictive features introduced by co-ordination alongside any pro-competitive efficiencies an agreement brings-benefits that may, in turn, offset identified appreciable restrictive effects. Although the focus of this Practice Note It therefore requires a measured assessment of both the constraints created by co-ordination and the efficiencies achieved through agreements when determining whether any appreciable restriction is ultimately outweighed on the facts...
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Web page updated on 27/05/2026
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