UK Competition Law
The UK Competition Act 1998 provides a regime for merger control and market investigation with the key criterion being whether a business is acting in a way that has anti-competitive effects. Criminal penalties of up to 5 years may be imposed on those breaking the rules and directors at fault could be disqualified. In addition, those affected by the anti-competitive practice can sue for damages.
UK law prohibits any agreement that restricts, prevents or distorts competition within the UK or part of it. UK laws do not normally apply where your business is dealing with another business at different level within the supply chain. However, if for instance you are a manufacturer or are dealing with a manufacturer, then the provisions apply unless there is an applicable exemption. Fines of up to 10% of the turnover may be imposed by the UK compeition authorities for infringement of the 1998 Act.