Competition Law

Breaches ofcompetition law can result in fines of up to 10% of worldwide turnover for three years, so it is critical not to fall foul of this complex area of law. Yet it can be easy to fall into an anticompetitive situation inadvertently.

Almost any trading agreement will contain restrictions on what one or more of the parties can do, for example the usage restrictions contained in a software licence or the non-compete restrictions contained in an agency or distribution agreement. Any restriction in a trading agreement is potentially anti-competitive, but there are a number of exceptions, so the key is to ensure that your restrictions fit within the exceptions. We have wide experience of dealing with this across a variety of sectors.

If it’s too late, and you’re already being investigated by the competition authorities, it is essential to instruct lawyers who will be able to understand the business issues and put forward the strongest arguments that your activities do not breach the law, or at least to keep any penalty to a minimum. Our lawyers have advised clients on a number of OFT investigations, and will be invaluable in minimising your exposure.

We can also use competition law to the advantage of our clients. For example, where the other party to a contract seeks to enforce a restriction, we can argue that the restriction is unenforceable, and threaten the involvement of the relevant competition authorities. This is usually enough to frighten the other party away.

For further assistance, please contact Justin Ellis.