Competition Law

Land agreements to be subject to Act.

The Government last month revoked the Land Agreement Exclusion Order, thus removing the exemption of land agreements from the Competition Act 1998.

With effect from 6th April 2011, land agreements will be treated in the same way as any other commercial agreement and will be subject to the 1998 Act, which applies where an agreement affects competition and trade in the UK.

There are a number of provisons in agreements between landlords and tenants which may potentially be anti-competitive, including covenants in a lease restricting a tenant’s commercial activities, or a landlord’s covenants not to let neighbouring premises to a competitor of the tenant.

Any agreement which infringes the Competition Act is void and unenforceable.

The Office of Fair trading FT is expected to publish guidance on the issue later this year. In the meantime both landlords and tenants may need to review their agreements ahead of the changes being implemented next year.

For more advice please contact our team at commercial@blasermills.co.uk.