UK and EU Reach Fair Competition Agreement

This agreement establishes a formal framework for cooperation between the UK's Competition and Markets Authority (CMA), the European Commission, and the national competition authorities of EU member states. It is the first supplementary deal to be added to the UK-EU Trade and Cooperation Agreement (TCA) that came into force in 2021. The new accord is designed to facilitate more effective coordination on parallel cases, including the sharing of information in investigations into anti-competitive practices that cross borders. This addresses the reality that since Brexit, UK and EU competition laws are distinct, which could lead to UK businesses being subject to two separate investigations for the same conduct. A key function of the agreement will be the mutual notification of enforcement activities that could impact the other party. This aims to reduce the risk of conflicting outcomes in merger and antitrust cases, a situation that has previously created uncertainty for companies operating in both jurisdictions. For example, the CMA and the European Commission have previously reached different conclusions on major deals like Microsoft/Activision Blizzard and Meta/Kustomer. The agreement focuses on procedural cooperation rather than aligning competition laws. It will allow authorities to coordinate timelines for investigations and reduce duplicative burdens on companies involved in multi-jurisdictional mergers or antitrust cases. However, the consent of the companies that provided confidential information will still be required before it can be shared between the authorities. The deal was signed in Brussels by UK Business Secretary Peter Kyle and the European Commission's Executive Vice-President for competition, Teresa Ribera. The agreement will now undergo formal ratification by both the UK and the EU before it officially comes into force.