Competing fairly

The Competition Act aims to promote healthy competition. It prohibits anti-competitive agreements between firms such as agreements to fix high prices or to carve up markets, and it makes it illegal for companies to abuse a dominant market position.

Most businesses have nothing to fear, but you need to be aware of the main rules to avoid breaking the law or becoming a victim of others' anti-competitive practices.

There are heavy penalties for infringements. Offenders can be fined, disqualified from being a director and, in some cases, even sent to prison.

Under competition law mergers between businesses can also be prevented if they might reduce competition, and uncompetitive markets can be investigated through market studies.

From 26 May 2008 (subject to Parliamentary approval), the law protecting consumers against unfair trading will be the same across the European Union. This will not only increase protection for consumers but will make it easier for businesses to operate in different member states. For more details, see the section on Consumer Protection from Unfair Trading Regulations.

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