Land agreements & Competition Act

Since the Competition Act 1998 came into force, certain agreements relating to land have been exempt from anti-competition rules. That exemption is to be revoked next year. From 6 April 2011, land agreements that prevent, restrict or distort competition will be void and unenforceable.

The OFT have just released draft guidance, aimed at helping businesses respond to this change in the law. Businesses are being invited to give feedback on the draft guidance by 14 January 2011.

In their statement, the OFT have said: “In the vast majority of cases we would not expect land agreements to raise competition problems. However terms which restrict the process of competition, for example clauses to stop competitors from using land, can be problematic. This guidance is designed to reassure companies when there is unlikely to be a problem and help them assess when they need to take professional advice.”

The draft guidance can be downloaded from the Land Agreements Guidance consultation page

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