22 October 2010
OFT launches competition law guidelines for businesses
The Office of Fair Trading (OFT) has produced a draft set of guidelines aimed at helping businesses avoid any legal issues or grievance cases in terms of competition law from land agreements.
From April 6th 2011, any contracts concerning land that prevent, restrict or distort competition in the field will be legally void and therefore unenforceable.
This represents a change in the current legislation in place so OFT has decided to try and help firms avoid penalties - such as a fine of ten per cent of their entire annual worldwide turnover - by producing this set of rules.
According to the regulatory organisation - which aims to "make markets work well for consumers" - the guidelines provide "a practical framework and hypothetical examples" of how any future agreements may be assessed.
Cavendish Elithorn, senior policy director at OFT, commented that the application of the competition law will "remove barriers to new businesses", which will in turn benefit consumers.
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Posted by Richard Saunders