About the OFT
Consequences of breaking the law
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Financial penalties
Businesses that infringe competition law can be fined up to 10% of their annual worldwide turnover. The OFT has published guidance explaining how we will set a financial penalty and will have regard to this when setting penalties: for further information see the OFT's guidance as to the appropriate amount of a penalty.
Immunity
Small businesses may be immune from financial penalties under CA98. There is no immunity, however, for those involved in price-fixing agreements or in relation to infringements of Article 81 or Article 82 of the EC Treaty.
This immunity applies only to financial penalties: an anti-competitive agreement or an abuse of a dominant position is still an infringement. We may still take enforcement action and third parties may still claim damages.
Other consequences
- Agreements that infringe Chapter I or Article 81 are void and cannot be enforced.
- Under the Enterprise Act 2002, it is a criminal offence for individuals to engage dishonestly in cartels. Individuals found guilty by a court can be imprisoned for up to five years and face an unlimited fine: see the OFT's Enterprise Act guidance The cartel offence: guidance on the issue of no-action letters for individuals.
- Company directors whose companies breach competition law may be subject to competition disqualification orders, which will prevent them from being involved in the management of a company for up to 15 years: see the OFT Enterprise Act guidance Competition disqualification orders.
- Damages claims can be brought by third parties and by consumer groups on behalf of named consumers against businesses that breach competition law
Further information
See the guideline Enforcement and the OFT's guidance as to the appropriate amount of a penalty. See also Cartels.
In this section
Back to: Competition Act 1998
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