The UK Competition Act of 1998 is a significant piece of legislation aimed at

promoting competition and preventing anti-competitive practices within the UK

market. Here are some of its salient features:

1. Prohibition of Anti-Competitive Agreements: The Act prohibits agreements,

decisions, and concerted practices that have as their object or effect the prevention,
restriction, or distortion of competition within the UK.
2. Abuse of Dominant Position: It prohibits the abuse of a dominant position in a
market, including actions such as predatory pricing, tying, and discriminatory pricing.
3. Merger Control: The Act establishes a framework for the regulation of mergers that
may substantially lessen competition within the UK. The Competition and Markets
Authority (CMA) is responsible for assessing mergers and determining whether they
should be allowed to proceed.
4. Market Investigations: The Act empowers the Secretary of State to request the
Competition and Markets Authority to conduct market investigations where there are
concerns about the functioning of particular markets.
5. Sectoral Regulation: It provides for concurrent jurisdiction between sectoral
regulators and the Competition and Markets Authority, allowing both to enforce
competition law within their respective sectors.
6. Enforcement Mechanisms: The Act establishes enforcement mechanisms, including
the ability for the Competition and Markets Authority to conduct investigations, issue
fines, and seek injunctions against anti-competitive behavior.
7. Leniency Program: The Act provides for leniency for businesses that cooperate with
investigations into anti-competitive practices, encouraging self-reporting and
providing incentives for whistleblowers.
8. Exemptions and Exclusions: Certain agreements and practices may be exempted or
excluded from the prohibitions of the Act if they meet specific criteria, such as
contributing to economic efficiency or being in the public interest.
9. Penalties and Sanctions: The Act sets out penalties for breaches of competition law,
including fines of up to 10% of worldwide turnover for businesses found to have
engaged in anti-competitive practices.
10. Cooperation with EU Law: The Act is designed to work in conjunction with
European Union competition law, ensuring consistency and compatibility with the
EU's competition framework.

These features collectively aim to promote competition, protect consumers, and

ensure a level playing field for businesses operating within the UK market.