Competition Act 1998

The prohibition U.K.

2 Agreements etc. preventing, restricting or distorting competition. U.K.

[F1 (1) Subject to section 3, agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom and which—

(a) in the case of agreements, decisions or practices implemented, or intended to be implemented in the United Kingdom, may affect trade in the United Kingdom, or

(b) in any other case, are likely to have an immediate, substantial and foreseeable effect on trade within the United Kingdom,

are prohibited unless they are exempt in accordance with the provisions of this Part.]

(2) Subsection (1) applies, in particular, to agreements, decisions or practices which—

(a) directly or indirectly fix purchase or selling prices or any other trading conditions;

(b) limit or control production, markets, technical development or investment;

(c) share markets or sources of supply;

(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Any agreement or decision which is prohibited by subsection (1) is void.

(5) A provision of this Part which is expressed to apply to, or in relation to, an agreement is to be read as applying equally to, or in relation to, a decision by an association of undertakings or a concerted practice (but with any necessary modifications).

(6) Subsection (5) does not apply where the context otherwise requires.

(7) In this section “the United Kingdom” means, in relation to an agreement which operates or is intended to operate only in a part of the United Kingdom, that part.

(8) The prohibition imposed by subsection (1) is referred to in this Act as “the Chapter I prohibition”.

Textual Amendments

F1 S. 2(1) substituted (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), ss. 119(2), 339(1) (with s. 119(4)); S.I. 2024/1226, regs. 1(2), 2(1)(2)

F2 S. 2(3) omitted (1.1.2025) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), ss. 119(3), 339(1) (with s. 119(4)); S.I. 2024/1226, regs. 1(2), 2(1)(2)

Modifications etc. (not altering text)

C1 S. 2 restricted (31.12.2020) by S.I. 2019/93, Sch. 4 para. 17A(1) (as inserted by The Competition (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1343), regs. 1(1), 40(2))

C2 S. 2(1) excluded (18.6.2001) by 2000 c. 8, ss. 164(1)(2)(4); S.I. 2001/1820, art. 2, Sch.

S. 2(1) excluded (3.9.2001) by 2000 c. 8, s. 311(9); S.I. 2001/2632, art. 2(2), Sch. Pt. 2

C3 S. 2(1) excluded (28.3.2012) by The Competition Act 1998 (Public Policy Exclusion) Order 2012 (S.I. 2012/710), arts. 1, 4

C4 S. 2(1) excluded (E.) (28.3.2020) by The Competition Act 1998 (Health Services for Patients in England) (Coronavirus) (Public Policy Exclusion) Order 2020 (S.I. 2020/368), arts. 1(1), 4 (with art. 1(2))

C5 S. 2(1) excluded (28.3.2020) by The Competition Act 1998 (Groceries) (Coronavirus) (Public Policy Exclusion) Order 2020 (S.I. 2020/369), arts. 1, 6

C6 S. 2(1) excluded (28.3.2020) by The Competition Act 1998 (Groceries) (Coronavirus) (Public Policy Exclusion) Order 2020 (S.I. 2020/369), arts. 1, 5

C7 S. 2(1) excluded (28.3.2020) by The Competition Act 1998 (Solent Maritime Crossings) (Coronavirus) (Public Policy Exclusion) Order 2020 (S.I. 2020/370), arts. 1, 4

C8 S. 2(1) excluded (21.4.2020) by The Competition Act 1998 (Health Services for Patients in Wales) (Coronavirus) (Public Policy Exclusion) Order 2020 (S.I. 2020/435), arts. 1(1), 4 (with art. 1(2))

C9 S. 2(1) excluded (temp.) (2.5.2020) by The Competition Act 1998 (Dairy Produce) (Coronavirus) (Public Policy Exclusion) Order 2020 (S.I. 2020/481), arts. 1, 5, 6 (with art. 10)

C10 S. 2(1) excluded (7.11.2021) by The Competition Act 1998 (Football Broadcasting Rights) (Public Policy Exclusion) Order 2021 (S.I. 2021/1148), arts. 1(1), 3 (with art. 5)

C11 S. 2(1) excluded (7.11.2021) by The Competition Act 1998 (Football Broadcasting Rights) (Public Policy Exclusion) Order 2021 (S.I. 2021/1148), arts. 1(1), 4 (with art. 5)

C12 S. 2(1) excluded (temp.) (15.11.2021) by The Competition Act 1998 (Carbon Dioxide) (Public Policy Exclusion) Order 2021 (S.I. 2021/1169), arts. 1(1), 4 (with art. 7)

C13 S. 2(5) applied (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), regs. 1(a), 7(3)

C14 S. 2(5) applied (1.1.2025) by Digital Markets, Competition and Consumers Act 2024 (c. 13), ss. 119(5), 339(1); S.I. 2024/1226, regs. 1(2), 2(1)(2)