ABSTRACT

Part I of the Act introduces two new prohibitions based on Arts 81 and 82. These are known respectively as the Chapter I and Chapter II prohibitions. The Chapter II prohibition is in respect of the abuse by an undertaking or undertakings of a dominant position in the UK. The Chapter II prohibition is contained in s 18 of the Act, which contains virtually identical provisions to those contained in Art 82. Section 18(1) provides, ‘any conduct on the part of one or more undertakings which amounts to the abuse of a dominant position in a market is prohibited if it may affect trade within the United Kingdom’. The only difference is that s 18 refers to a dominant position and the effect on trade within the UK. Consistency of interpretation with Community law, Art 82 in this context, is ensured by s 60 of the Act. This provides that the determination of any questions under the prohibitions should be consistent with the treatment of corresponding questions arising under Community law. This may, for instance, have an obvious impact on the interpretation of the term ‘undertaking’, which is likely to be given a broader meaning than the terminology of ‘firms’ adopted under the 1973 Act. This provision clearly ensures that Community case law on what constitutes an abuse of a dominant position will be followed to the extent that it is relevant in a national context. Section 19 excludes the application of the prohibition where Sched 1 (mergers and concentrations) or Sched 3 (general exclusions) applies.