The Chapter I prohibition

In the UK, anti-competitive agreements and other forms of coordination are governed by Chapter I of the Competition Act 1998 (CA 1998). CA 1998, s 2(1) prohibits agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competition within the UK and which satisfy the UK trade nexus.

For agreements, decisions or concerted practices implemented, or intended to be implemented, in the UK, it is sufficient that they may affect trade within the UK. Where the conduct is implemented outside the UK, Chapter I may nevertheless apply where it is likely to have an immediate, substantial and foreseeable effect on trade within the UK. The effect on trade need not extend to the whole of the UK; conduct affecting a local or regional market may be sufficient.

Chapter I is concerned with coordination between independent undertakings. It does not apply to purely unilateral conduct, although unilateral conduct may fall within Chapter I where it is accepted, expressly or tacitly, by another undertaking. Unilateral conduct by a dominant undertaking should be considered