New competition laws come into force in the UK

Directors who engage in price-rigging or bid-fixing will face up to five years in jail under new laws that come into force in the UK today.

The Enterprise Act gives the Office of Fair Trading powers to apply to disqualify directors for up to 15 years if they break competition laws. Directors will face criminal penalties if they take part in a cartel.

The Act also gives the OFT new controls over mergers and acquisitions. The OFT, rather than a government minister, will decide which mergers it will refer to the Competition Commission, and will apply a new test of a “substantial lessening of competition” in a UK market to judge which mergers it will refer to the Commission.