Last year, we reported that the CMA had used its enforcement powers in the context of a limitation of land contracts with respect to charges on an airport car park. This led Heathrow Airport to pay a fine of £1.6 million (including a 20% reduction for cooperation and comparison). In February 2020, the CMA published a letter confirming that Tesco had been found guilty of repeated violations of competition law in its land agreements . Land agreements therefore currently seem to be in the spotlight in competition law. The CMA guidelines rightly call on companies to seek legal advice before signing a potentially restrictive agreement. It is also important that it reminds companies that “do not assume that existing land contracts are legal because they have been verified by lawyers in the past.” In other words, a user restriction in your lease, which may have been valid before, might no longer be valid now. Restrictions on land agreements on how land can be used or on the exercise of a right to land are not necessarily contrary to competition law. As a general rule, parties that have interests or interests in land are free to decide how that country is to be used or whether the country is suitable to be used for specific purposes. Since the 6th To learn more about competition law and its impact on your business, check out our competition guides page This guide was originally published by the Office of Fair Trading (OFT) and adopted by the CMA Board of Directors. The original text has been maintained as it stands and therefore does not reflect or take into account developments in case law, legislation or practice since its initial publication.
However, if the parties to a land agreement are competitors who aim to share related markets (i.e. a cartel), the agreement may constitute a serious breach of the Chapter I prohibition and the CMA may independently investigate the market shares held by the parties. The CMA is expected to impose significant fines for these violations. consider existing land agreements to be legal because they have been reviewed by lawyers in the past. The Act was amended in 2011 by the fact that land agreements (including restrictions on use) were no longer excluded from competition law – see the CMA`s detailed guidelines on land contracts In the UK, all land contracts (including transfers of ownership, leases, assignments, licences and development agreements) are subject to competition law. The Competition Act 1998 prohibits agreements which have the effect of restricting or restricting competition. The CMA recognizes that most land agreements are not contrary to competition law and that a company may, for many legitimate reasons, attempt to impose a land use limitation.. . . .