Competition Act 1998
What this means for your business
- Applies to
- United Kingdom
- On this page
- 13 compliance obligations, 6 practical guides across 4 topics
What you must do
13 compliance obligations under this legislation — 6 can result in imprisonment.
Management duties 1
Comply with the terms of an approved redress scheme
If your business is named as a compensating party in a Competition and Markets Authority‑approved redress scheme, you must follow the scheme’s terms and take all reasonable steps to do so. Failure to comply can lead to civil claims for damages or injunctions by the CMA or affected persons.
Notifications 2
Notify the CMA and apply for a decision on conduct
If you want the Competition and Markets Authority (CMA) to decide whether your business practice breaches the competition rules (Chapter II prohibition), you must first inform the CMA of the conduct and then formally request a decision. This step is required before the CMA can consider your case.
Notify the CMA and request guidance on potential competition issues
If you want the Competition and Markets Authority (CMA) to look at a business practice you are considering, you must first tell the CMA about it and ask for their advice. This helps you find out whether the conduct might breach competition rules before you go ahead.
Other requirements 1
Cooperate with CMA officers executing a warrant
If a Competition and Markets Authority (CMA) officer arrives with a warrant to inspect your premises, you must be told about the planned entry and be given a reasonable chance to be present. If you cannot be informed beforehand, the officer will leave a copy of the warrant in a prominent place. You need to allow the officer to enter and follow these steps.
Offences and prohibitions 6
Commit a competition law offence
Unlimited fineIf your business engages in anti‑competitive conduct that breaches the Competition Act 1998 – for example, entering into a cartel, abusing a dominant market position, or any other prohibited activity – you can be prosecuted. On conviction you may face an unlimited fine and, in the most serious cases, a custodial sentence.
Commit anti‑competitive offences (e.g., cartel, abuse of dominance)
2 years imprisonmentIf your business engages in prohibited anti‑competitive behaviour such as price fixing, market sharing, bid‑rigging or abusing a dominant market position, you are committing a criminal offence under the Competition Act 1998. A conviction can result in an unlimited fine and, in the most serious cases, up to two years’ imprisonment.
Consent, connivance or neglect in a corporate competition offence
2 years imprisonmentIf your company breaches the Competition Act (e.g. illegal agreements or abuse of dominance) and the breach is done with the consent, connivance or neglect of a director, manager, secretary or similar officer, that officer is also criminally liable. The officer can be prosecuted and punished in the same way as the company itself.
Obstruct a competition regulator officer
2 years imprisonmentIf a person deliberately blocks, hinders or otherwise interferes with a Competition and Markets Authority officer who is exercising powers under the Competition Act (such as investigations or a warrant), they commit a criminal offence. On conviction the court can impose an unlimited fine, and if the obstruction relates to a warrant the offender can also be sentenced to up to two years’ imprisonment. The offence can be tried either in the Magistrates’ Court or the Crown Court.
Obstruct competition authority investigation
5 years imprisonmentIf you (or your business) fail to give information, provide false or misleading information, destroy documents, or otherwise do not cooperate with a direction from the Competition and Markets Authority (CMA), you commit a criminal offence under the Competition Act 1998. On conviction you can be fined (unlimited amount) and may face up to several years’ imprisonment.
Provide false or misleading information to the CMA
2 years imprisonmentIf your business gives the Competition and Markets Authority (CMA) information that is false or misleading in a material way, and you know it is false or are reckless about it, you commit a criminal offence. The same offence applies if you pass false or misleading information to another person, knowing it will be used to inform the CMA. On conviction you face an unlimited fine, and if tried on indictment you could also be sentenced to up to two years' imprisonment.
Record keeping 1
Preserve documents relevant to CMA investigations
Unlimited fineIf you become aware that the Competition and Markets Authority (CMA) is investigating your business, or may be helping an overseas regulator, you must keep any documents that could be relevant. You must not delete, hide, alter or let anyone else destroy those documents. This duty continues for as long as the investigation is ongoing.
Reporting and filing 2
Answer CMA questions when served a notice
2 years imprisonmentIf the Competition and Markets Authority sends you a written notice asking you to answer questions about a competition investigation, you must provide the answers at the time and place (or remotely) the notice specifies. The notice will also be copied to any business you are connected with, so that business must be aware of and support your response.
Apply to Tribunal for approval of collective settlement
If your business is named as a defendant in a Competition Act collective action, you must work with the claimant’s representative to submit an application to the Competition Appeal Tribunal approving any settlement. You must provide the agreed details of the claims and the settlement terms, and respect the opt‑out/opt‑in rules set by the Tribunal. The Tribunal will only approve a settlement that is just and reasonable, and it will bind those who have not opted out (or have opted in).
Penalties for non-compliance
9 penalties under this legislation. 6 can result in imprisonment. 9 carry an unlimited fine.
Commit anti‑competitive offences (e.g., cartel, abuse of dominance)
Unlimited fine and/or 2 years imprisonment
Consent, connivance or neglect in a corporate competition offence
Unlimited fine and/or 2 years imprisonment
Obstruct a competition regulator officer
Unlimited fine and/or 2 years imprisonment
Obstruct competition authority investigation
Unlimited fine and/or 5 years imprisonment
Provide false or misleading information to the CMA
Unlimited fine and/or 2 years imprisonment
Destroy, falsify or conceal documents required by the CMA
Unlimited fine and/or 2 years imprisonment
Commit a competition law offence
Unlimited fine
Preserve documents relevant to CMA investigations
Unlimited fine
Answer CMA questions when served a notice
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
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Sections and provisions
148 classified provisions from this legislation.
Duties 13
- s.21 Notification for guidance.
- s.22 Notification for a decision.
- s.25B Duty to preserve documents relevant to investigations The person
- s.26A Investigations: power to ask questions matter relevant
- s.29 Entry of premises under warrant: supplementary.
- s.31C Review of commitments
- s.31D Guidance
- s.31B Effect of commitments under section 31A action in relation
- s.35C Statement of policy in relation to functions under sections 31E, 34 and 35A
- s.38 The appropriate level of a penalty.
- s.49A Collective settlements: where a collective proceedings order has been made
- s.49E Enforcement of approved schemes person entitled
- s.52 Advice and information.
Offences and penalties 10
- s.35A Enforcement of powers under sections 31A, 32, 33 and 35: imposition of penalties
- s.37 Recovery of penalties.
- s.40B Statement of policy on penalties
- s.42 Obstruction.
- s.43 Destroying or falsifying documents.
- s.44 False or misleading information.
- s.65L Offences
- s.65 Offences.
- s.67 Offences.
- s.72 Offences by bodies corporate etc.
Powers 35
- s.3 Excluded agreements.
- s.5 Cancellation etc. of individual exemptions.
- s.7 Block exemptions: opposition.
- s.8 Block exemptions: procedure.
- s.10A Power to vary etc assimilated block exemption regulations
- s.12 Requests for OFT to examine agreements.
- s.19 Excluded cases.
- s.26 Investigations: powers to require documents and information
- s.28A Power to enter domestic premises under a warrant
- s.28 Power to enter business premises under a warrant.
- s.31F Power for Secretary of State to impose time-limits on investigations etc.
- s.31E Enforcement of commitments
- s.32 Directions in relation to agreements.
- s.33 Directions in relation to conduct.
- s.34 Enforcement of directions.
- s.35B Penalties under section 35A: amount
- s.40A Penalties: amount
- s.44B Extra-territorial application of notices under sections 26 and 40ZD
- s.47C Collective proceedings: damages and costs
- s.49D Redress schemes: recovery of costs
- ... and 15 more powers
Definitions 23
- s.4 Individual exemptions.
- s.6 Block exemptions. exempt agreement specified
- Schedule 7 The Competition Commission
- Schedule 8 Appeals
- Schedule 11 Interpretation of Section 55
- Schedule 13 Transitional Provisions and Savings RPA RTPA the Court
- s.18 Abuse of dominant position. dominant position the United Kingdom
- s.31 Decisions following an investigation. decision
- s.39 Limited immunity in relation to the Chapter I prohibition.
- s.40 Limited immunity in relation to the Chapter II prohibition.
- s.40ZB Transferred EU anti-trust commitments
- s.40ZD Information relating to transferred EU anti-trust commitments and transferred EU anti-trust directions
- s.40ZA Interpretation
- s.40ZC Transferred EU anti-trust directions
- s.47A Proceedings before the Tribunal: claims for damages etc.
- s.59 Interpretation of Part 1.
- s.60A Certain principles etc to be considered or applied from IP completion day
- s.61 Interpretation of Part 2
- s.65C Interpretation of Part 2A
- s.73 Crown application.
- ... and 3 more definitions
Exemptions 17
- Schedule 1 Exclusions: Mergers and Concentrations
- s.2 Agreements etc. preventing, restricting or distorting competition.
- Schedule 3 General Exclusions
- s.9 Exempt agreements.
- s.10 Assimilated exemptions.
- s.13 Notification for guidance.
- s.14 Notification for a decision.
- s.25A Power of CMA to publish notice of investigation etc
- s.25 Power of CMA to investigate
- s.27 Power to enter business premises without a warrant
- s.30A Use of statements in prosecution
- s.30 Privileged communications.
- s.35 Interim measures.
- s.36 Penalties.
- s.41 Agreements notified to the Commission.
- Schedule 6A COMMITMENTS
- Schedule 9 CMA's Rules