UK to Take “More Permissive Approach” to Competition Law for Agreements that Combat Climate Change

The UK’s Competition and Markets Authority (CMA) believes that the current competition rules provide a framework for encouraging such agreements between businesses, and its new guidance outlines how it intends to interpret and apply these rules. In particular, the guidance explains that when assessing whether an agreement between competitors is likely to result in anti-competitive effects, the CMA may consider whether or not the agreement contributes to climate change mitigation or adaptation efforts.

The document released by the Competition and Markets Authority (CMA) provides guidance for businesses on ensuring their agreements comply with competition law. It outlines the different types of collaboration related to environmental sustainability that may be exempt from competition law, such as joint research or development projects and cooperation to lower carbon emissions. The document also includes advice on how firms can assess the impact agreements may have on competition and customers. It recommends that businesses consider factors such as whether the agreement will likely lead to higher prices, fewer choices or reduced quality of goods and services for consumers.



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