Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Block exemption definition

What does Block exemption mean? A block exemption is a competition law safe harbour that automatically exempts defined categories of agreements from the general ban on anti-competitive agreements, if specified conditions are met and no hardcore restrictions (for example, price fixing or certain territorial or customer allocation) are included. It is typically applied to vertical distribution and supply, franchising, research and development, specialisation and motor vehicle distribution and servicing. United Kingdom: Block exemptions are set by Block Exemption Orders under the Competition Act 1998. Where their criteria (including market share thresholds and excluded/hardcore restrictions) are satisfied, they disapply the Chapter I prohibition in section 2...

Pricing under TFEU Articles 101/102 and UK CA 1998: price coordination (RPM, RRPs, MFNs) and dominance abuses (loyalty rebates, predation, margin squeeze, excessive and discriminatory pricing)

Published by a LexisNexis Competition expert

Practice notes

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Types of pricing conduct

In broad terms, EU and UK competition rules concentrate on two classes of pricing behaviour:

agreements and/or concerted practices concerning price; and
pricing strategies pursued by ‘dominant’ undertakings.

Agreements and concerted practices

Arrangements and coordinated conduct between two or more undertakings about the level at which prices are fixed or otherwise aligned (directly or indirectly via contractual devices, off‑the‑record behaviour, and/or exchanges of information).
These ‘price restrictions’ (covering vertical distribution/resale terms, price parity clauses, horizontal cooperation, and cartel or cartel‑like behaviour) chiefly raise Article 101(1) TFEU/Chapter I of the UK Competition Act 1998 (CA 98) issues (see the prohibition on restrictive agreements and the Chapter I prohibition).
Price coordination (whether horizontal or vertical) is generally viewed as illegitimate—being among the most problematic restraints as it conflicts with the very essence of competition (ie, the freedom to set prices competitively and independently).
Nevertheless, some pricing agreements may be harmless or even pro‑competitive because they:
- can potentially fall outside Article 101(1) TFEU/Chapter I altogether on De minimis grounds, or by virtue of being part of a genuine agency relationship, an ‘ancillary

...

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Web page updated on 21/05/2026

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