Agenda

COMPETITION AND MARKETS AUTHORITY TEMPORARILY RELAXED COMPETITION LAW ENFORCEMENT FOR ENSURING VITAL NEEDS DUE TO COVID-19

20/03/2020

UK competition authority CMA relaxed competition law enforcement against the cooperation agreements between the suppliers of essential goods and services in order to ensure supply security of these products.

Accordingly, CMA announced not to take any action against cooperation practices for supplying and rationing essential products between businesses such as supermarkets. These practices in particular may include pooling resources and data, sharing distribution depots and delivery vans and sharing and discussing information about stock levels. CMA highlighted that it would not tolerate exploitation of the crisis for non-essential collusions and exchanging information on longer-term pricing or business strategies and abusing this relaxation policy. The Authority also stated that this assurance cannot protect businesses against private enforcement of competition rules.