Monopolies and Anti-Competitive Practice Legislation in the UK

This presentation provides an overview of monopolies and anti-competitive practice legislation in the UK. It discusses the Competition Act of 1998 and the Enterprise and Regulatory Act, as well as the role of the competition commission. It also explains the definition of dominant positions in the EU common market and explores instances when EU law makes exemptions for anti-competitive practices.

Task 3

3.1 Outlining and explaining monopolies as
well as anti-competitive practice legislation in
UK
• Laws like Competition Act of 1998 and Enterprise and
Regulatory Act have been formed for better
execution of business processes of UK
 Competition Act states that illegal ways cannot be used
by ventures for execution of their businesses
 Enterprise and Regulatory Act (formed in year 2013),
states that competition and intelligence related to
market tasks need to be performed by Fair Trading
Office

Contd..
• Several prohibitions need to be strictly followed while
conducting business like:
 fixed pricing policy to maintain competition in market
 never abuse any other business processes
• It is essential that fair trade practices need to be followed in
businesses
• This lets business to promote fair competition in UK market
• This lets business to enhance productivity and skills
• Enterprise and Regulatory Act states that safety needs to be
assured to people for better operation in business or else
strict action can be taken against such deeds

3.2 Explaining role of competition
commission in context of monopolies
• Fair Trading Office
This body looks after whether business houses conducts any
unfair means of trading or not (Schwartz, 2017, p.236)
Responsibilities of such authority are promoting structure of
market whenever competition increases and restrict
business practices for better operation in business
There is another body named as commission of competition
that looks after whether merger is proving beneficial for
business
This body supervises work practices correctly so that merger
is properly implemented in every business sector or not

Contd…
• Competition and Market Authority
This authority regulates competition by merging roles of
both fair trading and commission for competition
This body applies different rules upon mergers in order to
maintain proper business processes
This authority has set a policy upon merger when a
business house incurs loss because of competition loss
due to merger
Unilateral effects, vertical effects and co-ordinate can lead
to reduce competition in market with help of merger

3.3 Defining dominant positions in common
market of EU
• Article 82 of European Union treaty mentions any
fault that occurs when business ventures in
dominant positions in common market can be
prohibited if it influences European Union directly
• In order to apply this article in business units, four
essential elements need to be considered
undertakings need to be in a supreme position
position needs to comply with common market
there needs to be delinquency of such position

Contd…
• European Union supervises every aspect of commission
(Zellweger, 2017, p.1045)
• If it finds any misconduct it immediately imposes change
upon such commission
• According to European Union, every business enterprise
needs to attend joint meeting that is arranged by this union
• This will help in maintaining proper business practices in EU
market
• EU can charge fine up to 10% of global turnover of any
business venture if it finds any breach of contract (Barrera,
2017, p.170)

3.4 Considering instances when EU law
will make exemptions for anti-competitive
practices
• Competition commission makes some changes
in agreements that are been made according to
article 81(3) if Treaty of Rome (Simonova and
Rudenko, 2017, p.615)
• EU has power of providing exemptions and then
notify for clearance
• positive conditions assists in contributing
greatly in production as well as distribution of
goods (Han, 2017, p.30)

Contd…
• Negative conditions mentions that limitations
will be imposed upon firms regarding
production and distribution
• This commission provides freedom upon
insurance as well as transportation part

Reference list
• Aluchna, M. and Idowu, S.O. eds., (2017). The
Dynamics of Corporate Social Responsibility: A
Critical Approach to Theory and Practice. Berlin:
Springer.
• Schwartz, M.S., (2017). Business Ethics: An Ethical
Decision-making Approach. Hoboken: John Wiley &
Sons.
• Zellweger, T., (2017). Managing the Family Business:
Theory and Practice. Cheltenham: Edward Elgar
Publishing.

Contd…
• Barrera, L.C.A., (2017). Multiple Strategies of Financial
Regulation Adopted in the Colombian Securities Market: The
Case of Over-the-Counter Derivatives. In Law and Policy in
Latin America, Palgrave Macmillan UK, 46(3), pp.167-183.
• Simonova, L. and Rudenko, D., (2017). Russian business
practice: Issues of corruption and trust. In Financial
Environment and Business Development, Springer
International Publishing, 18(1), pp.611-622.
• Han, S., (2017). Corporal Punishment Practice: Law, Trends,
Perspective, and Research. In Corporal Punishment in Rural
Schools, Springer Singapore, 29(4), pp.17-35.