Chapter II prohibition Definition | Legal Glossary | LexisNexis
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GLOSSARY

Chapter II prohibition definition

What does Chapter II prohibition mean?

A reference to the prohibition in section 18 of the Competition Act 1998 against conduct by one or more undertaking amounting to an abuse of a dominant position if it may affect trade within the UK.

Substantively the same prohibition as is found in Article 102 TFEU with the exception of the jurisdictional element. Section 18 prohibits conduct classed as abusive by dominant undertakings (either unilaterally or via two or more undertakings holding a collectively dominant position). Abusive conduct can consist of practices such as: a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; b) limiting production, markets or technical development to the prejudice of consumers; c) applying dissimilar conditions to equivalent transactions with other trading parties; and d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which have no connection with the subject of the contracts. Dominant undertakings can argue the presence of objective justification to dispel allegations of abusive conduct.

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