The CMA’s short guide on Joint Ventures
and Competition Law: do’s and don’ts is for
businesses that are already in, or are considering
entering into, joint ventures, alliances or other forms
of collaboration with another business.
The CMA’s advice urges competing businesses to make
sure they collaborate legally, check they are compliant
with competition law from the outset of agreements and
to keep arrangements under regular review to help
ensure they remain compliant. In addition to publishing
the advice, the CMA is also writing directly to over
one thousand regional commercial law firms to ask them
to share the advice with their clients.
Ann Pope, CMA Senior Director, Antitrust, said:
At the CMA we support collaboration between
competitors that leads to innovation and directly
benefits customers but there can be a fine line
between collaborating and colluding. Certain forms of
collaboration between competitors are illegal under
competition law and businesses can face large fines
if they break the law.
Competing businesses setting up a joint venture
should be clear about how collaborating will directly
benefit customers, and that the benefit of joining
forces couldn’t equally be achieved by acting alone
but in competition with each other.
Labelling a collaboration as a ‘joint venture’ will
not protect businesses from the scrutiny of
competition law. Our new advice provides pointers on
what is and isn’t allowed when operating a new or
existing joint venture - I urge businesses and legal
advisors alike to read and share it.
