NewsCase StudiesEvents

New law to make doing business simpler while protecting consumers

Also in the news...

7 Steps to Starting a Successful Business in College

Many students consider starting a business in college, inspired by the paths of successful people and the many opportunities available. Although various nuances may prevent you from achieving this, results orientation and perseverance will allow you to move mountains.

7 Popular Gibraltar Startup Companies

Though small, Gibraltar is a burgeoning hub for innovative startups. This British Overseas Territory has become attractive for entrepreneurs due to its favourable tax laws and business-friendly environment. Here, we explore seven popular startups significantly impacting their respective industries.

How AI Fashion Models are Changing the Product Modelling Business

Artificial Intelligence (AI) is revolutionizing various sectors, and the fashion industry is no exception. AI fashion models and the utilization of AI-generated images to showcase products represent a futuristic trend blending technology with creativity. This article delves into how AI is transforming fashion presentations, the benefits of this innovation, and potential future developments.

Navigating Tech Challenges in Global Expansion - Solutions for Startups

When you're steering your startup towards international waters, the thrill of tapping into new markets is often mingled with the challenge of navigating tech hurdles. From ensuring seamless operation across time zones to adapting to local regulations, the tech aspect of global expansion can seem daunting.

Guidance Living in Egypt

Information for British citizens moving to or living in Egypt, including guidance on residency, healthcare and employment.

New law to make doing business simpler while protecting consumers

Back to News

The government is replacing EU exemptions from competition law for agreements between producers, distributors and retailers with bespoke rules better suited to the UK.

  • The government is replacing EU exemptions from competition law for agreements between producers, distributors and retailers with bespoke rules better suited to the UK
  • the move follows expert advice from the Competition and Markets Authority, the UK’s competition regulator
  • a technical consultation on the wording of the legislation is now open until 16 March 2022

A new law will help UK firms do business while maintaining strong protections for consumers, the government has announced today (Monday 21 February).

Currently, the UK has retained EU rules that exempt businesses from competition law in certain circumstances. The government has received expert advice from the UK’s Competition and Markets Authority which recommended a new, bespoke competition law exemption for the UK, replacing the retained EU rules which expire on 31 May 2022.

The new rules will ensure competition law does not impose unnecessary burdens, encouraging so-called ‘vertical agreements’ which are agreements between companies at different levels of the supply chain, such as farmers and grocers.

These vertical agreements benefit consumers by encouraging efficiencies, investment and innovation. Benefits of the new UK system include:

  • removing wide retail parity obligations from the exemptions. These obligations specify that a product or service may not be offered on better terms on any other indirect sales channels, including through intermediaries, such as other distributors or online platforms. For example, currently a travel agent might require a hotel not to offer its rooms on any other sales channel at a better price or on better terms and conditions, limiting the incentives for travel agents to compete
  • creating a more level playing field for high streets and brick-and-mortar retailers by expanding the exemptions to cover agreements that treat online and offline sales differently. This includes charging the same distributor a higher price for products intended to be resold online than for products intended to be sold offline
  • more flexibility for businesses to design their distribution systems, for example by allowing a business to combine distribution rights by allowing multiple retailers of its product in one geographical area while having an exclusive arrangement with another retailer in another area

The government is consulting on the legal wording of the exemption. The Competition and Markets Authority will publish further guidance to accompany this legislation, the CMA Verticals Guidance, in due course.

gov.uk

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.