The Competition Act 1998 has recently been extended from 6 Apri 2011 to cover agreements with regard to land. Such agreements were previously excluded.
The Act seeks to prohibit agreements, etc. which prevent, restrict or distort competition.
The change is important for owners and occupiers of land, because it has been common for agreements (especially tenancy agreements) to contain exclusivity clauses – for example, where a tenant retailer agrees with its landlord that no competitor of the tenant will be allowed retail space in the same development. Such agreements may now be unlawful.
Where such agreements are in place, we recommend having them reviewed in order to ensure that they do not conflict with the principles contained in Chapter 1 of the Act.
The Office of Fair Trading has issued guidance on the changes, which can be found here.
Contact us for advice concerning the application of the Act in your individual circumstances. Alternatively, visit our business law faqs page.
