Environmental Sustainability Agreements And Competition Law

Anti-competitive agreements reached between businesses are generally prohibited by competition law. The UK's sanctions for businesses found to breach competition law are extensive and include:

• fines for the businesses involved of up to 10% of their annual worldwide turnover;
• up to five years imprisonment and/or unlimited fines for individuals involved in setting up or implementing anti-competitive agreements with competitors; and
• disqualification from acting as a company director for up to 15 years.

These sanctions are in addition to any damages claims which may be brought by third parties affected by the anti-competitive behaviour and the reputational damage which is likely to be suffered by firms investigated or fined by the Competition and Markets Authority.