Competition Law Issues

Competition law must be taken into account in developing collaborative arrangements such as distribution, franchising and manufacturing licences since it prohibits agreements or concerted practices which prevent, restrict or distort competition and affect UK and/or EU trade.

However, such arrangements may be exempt from the prohibition if the parties together have a turnover below a certain threshold in a relevant market or if the terms of such arrangements are within the relevant block exemptions covering those arrangements.  

Fines and compensation claims can follow breach of competition rules. This is certainly not an area for DIY and legal clearance should be obtained to establish if there is a need to modify an agreement or alternatively to notify it to the appropriate competition authority.