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Competing Fairly: Why Businesses Need to Know about Competition Law ?Firms involved in anti-competitive behaviour may find their agreements to be unenforceable and risk being fined up to 10% of group global turnover for particularly damaging conduct as well as exposing themselves to possible damages actions. Furthermore, individuals could also find themselves facing director disqualification orders or even criminal sanctions for serious breaches of competition law (see Out-Law's guide to Individual liability for competition law infringements). As such, any business - whatever its legal status, size and sector - needs to be aware of competition law, firstly so that it can meet its obligations (and in doing so, avoid the penalties mentioned above), but also so it can assert its own rights and protect its position in the marketplace. In the UK two sets of competition rules currently apply in parallel. Anti-competitive behaviour which may affect trade within the UK is specifically prohibited by Chapters I and II of the Competition Act 1998 and the Enterprise Act 2002. Where the effect of anti-competitive behaviour extends beyond the UK to other EU Member States, it is prohibited by Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU). UK and EU competition law prohibit two main types of anti-competitive activity: -anti-competitive agreements (under the Chapter I / Article 101 prohibitions); -and abuse of a dominant market position (under the Chapter II / Article 102 prohibitions).The UK government has said it will make no fundamental changes to its competition law regime after the UK leaves the EU. Even after Brexit, or after any transition period, UK companies whose activities may affect trade within the EU, will remain subject to EU competition law.Anti-competitive agreements (Chapter I / Article 101) Both UK and EU competition law prohibit agreements, arrangements and concerted business practices which appreciably prevent, restrict or distort competition (or where this is the intended result) and which affect or may affect trade within the UK or the EU respectively.Consequences of breach Contravention of Chapter I or Article 101 can have serious consequences for a company: -firms engaged in activities which breach these provisions can face fines of up to 10% of group global turnover;-provisions in agreements which breach Chapter I or Article 101 are void and unenforceable (which may lead to the entire agreement being unenforceable);-firms in breach of Chapter I or Article 101 also leave themselves exposed to actions for damages from customers and competitors who can show they have been harmed by the anti-competitive behaviour; and-breach of Chapter I can result in individuals being disqualified from being a company director and lead to criminal sanctions.Types of agreement caught Whether an arrangement is anti-competitive is assessed on the basis of its objective, or its effect on competition, rather than its wording or form. This means that verbal and informal 'gentlemen's agreements' are equally capable of being found to be anti-competitive as formal, written agreements. Examples of the types of arrangement which are generally prohibited under Chapter I and Article 101 include:

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