HomeInsightsOfcom opens investigation under Competition Act 1998 and Article 101 of the Treaty on the Functioning of the European Union (TFEU)

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Ofcom’s investigation is into suspected market sharing and/or customer allocation arrangements between operators in the business parcel delivery sector in the UK and/or European Union.

Section 2 of the Act prohibits agreements between undertakings that have as their object or effect the prevention, restriction or distortion of competition, where this may affect trade within the UK (the “Chapter I prohibition”). Similarly, Article 101 of the TFEU prohibits agreements between undertakings that have as their object or effect the prevention, restriction or distortion of competition, where this may affect trade between Member States.

The purpose of the investigation is to establish whether there has been one or more infringements of the Chapter I prohibition and/or Article 101 of the TFEU by operators in the business parcel delivery sector.

The first phase of the investigation is a gathering of further information exercise.  The analysis of this information will help inform Ofcom’s view on how to proceed further with the investigation.

Ofcom says that the investigation is at an early stage and it has not reached a view on whether there has been a breach of competition law or not.  If Ofcom finds sufficient evidence of one or more breaches, it will issue a Statement of Objections to the relevant operators.  For further information, click here.