The proposed new Competition Act will help create more competitive markets by equipping the authorities with more effective powers to intervene against anti-competitive activity. But UK companies will need to understand the Act to avoid falling foul of its provisions. Chris Taylor examines what the proposed new legislation will mean to UK businesses, and previews the OFT s campaign of education to raise awareness and prepare businesses for its introduction. It is in the UK s economic interests to improve its ranking.
Business today is increasingly international, and increasingly mobile.
Where this is the case, companies will compete on the basis of service and innovation, customers will benefit, jobs will be created and economies prosper. It is also clearly in the interests of consumers to receive adequate protection from the anti-competitive activities of businesses. To be an effective deterrent, regulatory bodies must have powers to investigate where they have reasonable grounds for suspecting infringements are taking place, and to penalise offenders in a way that will be seen as an example to others. At present, under the existing UK competition law, neither of these powers is effectively in place. At present, competition cases which may affect trade between member states of the European Union fall within the ambit of Articles 85 and 86 of the EC Treaty and, therefore, within the jurisdiction of the European Commission.