Competitive Practices Legislations In The UK
P 3.1 outlines the monopolies and anti-competitive practices legislations in the UK
Competition is very important and plays a very important role in the market. It encourages competition in the market and also benefits the customer by reducing the price of the product in the market.
Under the treaty of ROME 1957 competition law has two main sources:-
- Article 81
- Article 82
- Article 81:- Article 81 deals with an anti-competitive agreement that is prohibited by the competition law which destroys the competition between the member states of the EU.
- Article 82:- Article 82 deals with prohibited the abuse of dominant position in this seller imposes unfair discriminatory conditions and prices over the product.
Monopolies:- Monopolies are a serious threat to the UK market. Any firm that possesses a 25% share in the market is the monopoly firm in the market. The companies which are merged together then are investigated by the monopolies and merge commission but it is necessary that the merged companies have control over the market by 25%.
The various examples of monopolies are manufactures of double aircraft, M.C. Donell, and Boeing. These three companies are merged in the single name which is known as the Boeing-Mc Donnell which has the monopoly of the double Decker aircraft manufacturers. It is the world’s largest manufacture who manufactured aircraft. They have the power to exploit their customer by any means.
The main legislation in the UK which regulates the competitions laws:-
- Competition Act 1998:- This act laid down the new provision which is related to the anti-competitive. A practice that is based upon the EC competition laws and the provision is contained in article 81 and article 82 of the treaty of ROME 1957 respectively.
- The enterprise Act 2002:- Enterprise act also makes changes in the UK competition laws. It introduces various numbers of laws to give strength to the competition laws.
P 3.2 Explain the Role of competition commission within the context of monopolies and anti-competitive practices and the UK office of fair trading.
2 Role of Competition Commission:-
Competition Commission is the main body that regulates the competition laws in the UK. It is the duty of the competition commission to inquiry that the market follows the competition’s laws or not. It does not have the power to impose fines or penalties upon them. Competition commission is come by replacing the monopolies and merger commission. Competition commission as more powerful than the power which is former given under the enterprise act 2002. It deals with the case which is passed from the regulatory bodies. Competition Commission has the power to make a recommendation but at present, they have the power to give the decision to the issues which are related to the merger, market investigation, etc. which is given in the form of remedy. They also hear the appeal which is made by the individual when they are not satisfied with the decision of the regulatory bodies.
Office of fair trading:- Under the Enterprise Act 2002 the position of the director-general in fair trading has been abolished and the function of the director-general has been transferred to the office of fair trading. All power of director-general has been transferred to the office of fair trading. Office of fair trading is the corporate body office of fair trading consist the chairman, chief executive, and tour other board members. The body of office of fair trading studies the market situation of the businesses which is not operated well for the customers by its market policy initiatives division. They have the power to take enforcement actions and also laid down the set proposals in which they proposed to changes the laws according to need.
- Part 2 of the enterprise act 2002 replaced the CC Appeal tribunal has been established for the appeals.
- Part 3 of the enterprise act also make changes in the UK merger control framework which also replaced the fair trading ACT 1973 provisions.
- Under the enterprise ACT, 2002 office of fair trading has also the power to carry out the initial investigation. The investigation has been marginal and they are seizing that they are separate entities.
Office of fair trading V IBA Health ltd (2004)
OFT investigated the merge of the two companies both are involved in the supply of the healthcare software and after investigation, OFT found that it is not to be harmful and appeal has been made which was retested by the CAT and it is upheld in the court of appeal.
P 3.3 Define dominant position with the EU common market
The dominant position is that in which the firm is in the position which has the substantial power related to the specific goods in the relevant market in it in the specified geographical area. For the EC market, there should be an abuse of dominant position in the market is the first essential condition if the firm not abuses the position then the firm is not the dominant position.
Dominance has been considered in the detailed case of the United Brands Company and United Brands Continental BV v. Commission of the European Communities  ECR 207: in this case there are various tests which are upheld in this. According to article (82) dominant position is that which is related to the position of the strength of any undertaking which prevent the competition in the market and it has the power to stand alone in the market independently and wipe out the competitors and abuse the consumers.
Dominant position include the two elements
- The firm is able to control the market and distort their competitors.
- The firm is able to stand alone in the market independently in the market.
P 3.4 consider the application of EU exemptions to potentially anti-competitive practices
- Individual exemption
This firm satisfies the Oft that the agreement will help in the economic growth and also not distort the competition in the market. And this exemption will only apply to the individual transaction.
- Block exemption
It is applied to the specific agreement which met all the conditions of the individual exemptions.
- Parallel exemption
It is applied on the agreement which covered the entire individual and block exemption and also makes involvement in the member states.
1. Law and Society
- Labor and human rights
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- Family law
- Company and commercial law
- Intellectual law
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