Introduction

Competition law exists to ensure that businesses compete fairly and that markets work efficiently for everyone. The Fire Industry Association supports these principles and trains its members to comply fully with the law in both UK and European contexts.

This section explains the legal framework, who enforces competition law, and the possible penalties for breaking it.

 

Core legislation

The key legal instruments are:

  • Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) – prohibiting anti-competitive agreements and abuse of dominant market position
  • Competition Act 1998 – aligning UK law with EU principles for domestic trade
  • Enterprise Act 2002 – governing investigations, enforcement and penalties within the UK

These laws collectively prevent agreements, conduct, or arrangements that restrict competition, distort markets or harm consumers.

 

What the law prohibits

Competition law prohibits two main types of behaviour:

  1. Anti-competitive agreements (Article 101 and Chapter 1) such as price fixing, market sharing, or limiting production
  2. Abuse of dominance (Article 102 and Chapter 2) such as predatory pricing or imposing unfair trading conditions

Even informal discussions or understandings between competitors can breach these laws.

Enforcement bodies

Competition and Markets Authority (CMA)

The CMA is the UK’s primary competition and consumer authority. It investigates and enforces the law to ensure markets work well for consumers and that businesses trade fairly. The CMA can: - Investigate suspected anti-competitive behaviour - Enter and inspect business premises (with or without a warrant) - Impose fines of up to 10% of global turnover - Prosecute individuals and restrict company directors involved in cartels

European Commission

The European Commission enforces competition law across EU member states for cross-border activity. It can investigate, inspect, and impose substantial fines. Although the UK has left the EU, companies trading within EU markets remain subject to EU competition law.

The Competition Appeal Tribunal (CAT)

The CAT hears appeals against CMA decisions and may review cases under both the Competition Act and the Enterprise Act. It ensures fairness and proportionality in the enforcement process.

 

Sector regulators

Certain UK regulators share competition law enforcement powers with the CMA for their sectors. These include: - Ofgem – energy - Ofcom – communications - Ofwat – water services - Civil Aviation Authority (CAA) – aviation - Financial Conduct Authority (FCA) – financial markets

They work together under the Concurrency Regulations 2014, which coordinate investigations and share information to ensure consistent enforcement.

 

Investigations and procedures

When the CMA suspects an infringement, it may: - Request information or documentation - Carry out unannounced inspections (known as dawn raids) - Question staff and copy digital data

Investigations can begin following a complaint, a market study, or information shared by a whistleblower or other regulator.

 

Penalties

Businesses or individuals found to have broken competition law may face: - Fines of up to 10% of global annual turnover - Director disqualification for up to 15 years - Criminal prosecution and potential imprisonment - Reputational and financial damage from published findings

The CMA considers several factors when setting penalties: - Severity and duration of the infringement - Cooperation during the investigation - Whether the organisation acted under pressure or led the breach

Cooperation with the CMA may result in reduced fines. Total immunity can apply to the first participant to report a cartel before an investigation begins.

 

Leniency and compliance

The CMA encourages voluntary reporting of anti-competitive behaviour. A company or individual who discloses involvement in a cartel may qualify for leniency, provided they: - Supply detailed evidence of the infringement - Cease participation immediately - Cooperate fully with the investigation

The FIA’s compliance training ensures members understand these options and act responsibly.

Summary

Competition law supports open and fair markets. The CMA and European Commission have strong powers to investigate and penalise breaches, so it is essential that FIA members understand their responsibilities and maintain compliance at all times.

Go to the Next Section