The Chapter II prohibition

In the UK, unilateral or ‘dominant’ firm conduct is governed by Chapter II of the Competition Act 1998 (CA 1998). CA 1998, s 18(1) prohibits conduct by one or more undertakings which amounts to the abuse of a dominant position in a market if it may affect trade within the UK.

For jurisdictional purposes, the dominant position must exist within the UK. The conduct itself may take place outside the UK, provided it is capable of affecting trade within the UK. For these purposes, the ‘UK’ means the UK or any part of it; unlike Article 102 TFEU, there is no requirement that the affected part be a substantial part of the UK.

Chapter II does not prohibit dominance as such, nor does it regulate how dominance is acquired (which is ordinarily addressed, if at all, through merger control). It is the abuse of dominance, without objective justification, which is prohibited.

As under Article 102 TFEU, a dominant undertaking is regarded as bearing a ‘special responsibility’ not to impair effective competition. Chapter II accordingly prohibits abusive conduct by dominant undertakings, including:

1. •

   imposing unfair prices