Competition Law and Land Agreements

From the 6^th April 2011 all Land Agreements became subject to Competition Law. Until then they were excluded from UK Competition Law and the prohibition on anti-competitive agreements.

Land Agreements are agreements between businesses which create, alter, transfer or terminate an interest in land. One party to the agreement may seek to impose restrictions on the way in which land may be used or how a right over land may be exercised.

An example of a land agreement which would fall foul of competition law would be, for instance, where two competitors in a particular industry seek to restrict the use of land with a view to restricting competition from other competitors in the same industry.

However not all such Land Agreements will offend the law and many will be able to claim an exemption especially where the benefits of the agreement outweigh its negative aspects

Also some land agreements will remain unaffected. For instance covenants relating to the payment of service charges; restrictions imposed on a lessee regarding alterations, repairs, obstructions to the premises, applications for planning permission, advertisements or hours of use and provisions which relate to the use of premises.

If the law in this area is breached however the consequences include, amongst other things financial penalties and director disqualification orders

If you need further advice on this subject please contact James Turner on 01775 722261 or james.turner@maplessolicitors.com.