Review - April 2011

    April 2011

    Following a public consultation (on which we reported in our October 2010 Review) the OFT has now published its guidance on the application of the chapter I prohibition under the competition act to “land agreements” (i.e. agreements between businesses which create, alter, transfer or terminate an interest in land) following the revocation of the Land Agreements Exclusion Order (the Land Agreements Guidance). From today, 6 April 2011, the exclusion which prevents the application of the Chapter I prohibition of the Competition Act 1998 (the Chapter I Prohibition) to land agreements will be removed and restrictions within a land agreement that prevent, restrict or distort competition will be void and unenforceable. Parties to land agreements must now selfassess the competitive impact of existing and future agreements in view of the change in the law, and the Land Agreements Guidance provides detail as to general principles that should be considered when undertaking that assessment. This also means that restrictions in existing land agreements are, as of today, open to challenge of infringing the Chapter I Prohibition.