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All businesses, whatever their size, must understand how they鈥檙e affected by competition law.

You must follow the rules on all types of anti-competitive activity including:

• price fixing, bid rigging and other ways of agreeing not to compete (sometimes called 鈥榗artels鈥�)
• abuse of a dominant market position

You should manage the risk of breaking the law, for example by having clear policies, guidelines and training for your staff.

You can report anti-competitive activity if you think another business is breaking the law, or if you might have been involved yourself.

If you鈥檙e involved in anti-competitive activity

Your business can be fined up to 10% of its worldwide turnover and sued for damages.

You can be fined or sent to prison for up to 5 years if you鈥檙e found guilty of being involved in cartel activity.

Company directors can be disqualified from being a director for up to 15 years.

You must avoid all types of anti-competitive activity in your business including:

• agreeing not to compete with another business
• abusing a dominant position

You can report anti-competitive activity if you see it.

Agreeing not to compete with another business (鈥榗artels鈥�)

If 2 or more businesses agree not to compete with each other in certain ways, it鈥檚 called a 鈥榗artel鈥�.

Rules about cartels cover:

• price fixing
• bid rigging
• sharing markets or customers
• sharing commercially sensitive information

An agreement does not have to be in writing for it to be illegal. You can break the law if you have an informal conversation (or 鈥榞entleman鈥檚 agreement鈥�) with another business, even if the agreement is not carried out.

Price fixing

You must not discuss the prices you鈥檙e going to charge your customers with your competitors.

You鈥檒l be breaking the law if you agree with another business:

• to charge the same prices to your customers
• to offer discounts or increase your prices at the same time
• to charge the same fees to intermediaries, for example retailers selling your products

Bid rigging

You cannot discuss bids for a contract tender with your competitors. Bid rigging includes:

• agreeing with your competitors how much you鈥檒l bid for a contract or share information about your bid
• taking turns to win contracts
• asking other businesses to bid when they do not want the contract (called 鈥榗over bids鈥�)
• paying other businesses not to bid or when you win a tender
• agreeing with other businesses not to bid or to withdrawing your bid

Market sharing

You cannot agree with other businesses to share markets or customers. You鈥檒l be breaking competition law if you agree with another business:

• not to approach each other鈥檚 customers
• not to compete with them for customers, for example in specific locations

Sharing information

You cannot share information with other businesses that might reduce competition between you, for example information about:

• prices
• production
• your suppliers, customers or contractors
• the markets you sell or plan to sell to

This includes sharing information through a third party, for example a trade association.

Abusing a dominant position

Your business might have a 鈥榙ominant position鈥� in the market if:

• it has more than a 40% market share
• it鈥檚 not affected by normal competitive restraints

You might be abusing your dominant position if you鈥檙e unfair to your customers or other businesses, for example you:

• treat customers differently, for example by offering different prices or terms to similar customers
• make customers buy products they do not want, for example forcing them to take warranties for electrical products
• charge low prices that do not cover your costs so you drive out competitors

If you think you have a dominant market position, get legal advice or contact the to find out what you can and cannot do.

Other anti-competitive activities

You must avoid other activities that break competition law, eg:

• buying or selling jointly with your competitors
• agreeing with your competitors to reduce production of something to raise its market value
• restricting how much other businesses can sell your product for
• agreeing with your competitors not to sell to certain customers or deal with certain suppliers
• having long-term exclusive contracts with any customers or suppliers

The people who run your business are responsible for ensuring it does not break competition law. You should:

• work out where your business is at risk and how serious any risks are
• set up policies, guidelines and training for your staff if you need to

Work out if your business is at risk

You鈥檙e more likely to be at risk if:

• you or your employees have contact with your competitors, for example at conferences or trade association meetings
• your employees regularly move to or from jobs with your competitors
• you have partnerships with your competitors, for example joint buying or selling
• you have any long-term exclusive contracts with any customers or suppliers
• your business has a dominant position in any market where you do business

Set up policies, guidelines and training

You should ask a senior member of staff, for example a director, to make sure your employees know how to avoid and report anti-competitive behaviour.

There鈥檚 further guidance from the Competition and Markets Authority (CMA) on reducing the risk of your business breaking the law.

The way you report anti-competitive activity depends on the type of activity.

Report a cartel

Contact the Competition and Markets Authority (CMA) cartels hotline if you:

• know about a cartel
• have been involved in one

You may:

• get a financial reward for information that leads to an investigation
• be treated with leniency if you report a cartel you鈥檝e been involved with

Report other anti-competitive activity

Tell the CMA if you have concerns about anti-competitive activity. Email [email protected] with the following information:

• your contact details
• the business you have concerns about and a description of the issue along with any supporting evidence
• the market area according to the UK Standard Classification Index
• details of any other organisations you have contacted

Report your concerns to an industry regulator

You can also report concerns about anti-competitive activity in certain sectors to a regulator. These are:

• for airports and air traffic services
• for financial services in the UK
• for health services in England
• for television, radio, telephone, postal and internet services
• for gas and electricity in England, Wales and Scotland
• for water and sewage services in England and Wales
• for railways in England, Wales and Scotland
• for payment systems in the UK
• for gas, electricity, water and sewerage in Northern Ireland