Re: Closed PPC Brand Bidding Groups & Anti Competition Legislation
Back to the competition law issue raised by Eye of the Tiger, I think there is strong argument that closed bidding PPC brand groups breach UK competition law.
The Chapter I prohibition of the Competition Act 1998 (the UK competition legislation) prohibits agreements which "affect trade within the United Kingdom and which have as their object or effect the prevention, restriction or distortion of competition within the UK."
From the OFT website: http://www.oft.gov.uk/Business/Legal...ca982.htm#anti
Quote:
Prohibiting anti-competitive agreements
...Both prohibitions relate to agreements between businesses that have as their object or effect the prevention, restriction or distortion of competition. Many different types of agreement may fall within the prohibitions. Chapter I and Article 81 provide an identical illustrative list of examples of agreements to which they apply:
* fixing purchase or selling prices or other trading conditions
* agreeing to limit or control production, markets, technical development or investment
* sharing markets or supply sources
* applying different trading conditions to equivalent transactions, thereby placing some parties at a competitive disadvantage
* making conclusion of contracts subject to acceptance of supplementary obligations.
Chapter I applies where the agreements at issue have an effect on trade within the UK.
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It seems to me that a case could be made against closed brand bidding groups on the basis that they are an arrangement which falls under the "agreeing to limit or control production, markets, technical development or investment" limb.
Interested to know others thoughts on this.
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