Statutory Instrument 2000 No. 310

The Competition Act 1998 (Land and Vertical Agreements Exclusion) Order 2000

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© Crown Copyright 2000

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Exclusion of vertical agreements from the Chapter I prohibition
     3. The Chapter I prohibition shall not apply to an agreement to the extent that it is a vertical agreement.

     4. Article 3 shall not apply where the vertical agreement, directly or indirectly, in isolation or in combination with other factors under the control of the parties has the object or effect of restricting the buyer's ability to determine its sale price, without prejudice to the possibility of the supplier imposing a maximum sale price or recommending a sale price, provided that these do not amount to a fixed or minimum sale price as a result of pressure from, or incentives offered by, any of the parties.

Exclusion of land agreements from the Chapter I prohibition
     5. The Chapter I prohibition shall not apply to an agreement to the extent that it is a land agreement.

Obligations and restrictions
     6.  - (1) This article applies to an obligation which is accepted by a party to a land agreement in his capacity as holder of an interest:

(a) in the relevant land or other relevant land and is for the benefit of another party to the agreement in his capacity as holder of an interest in the relevant land; or

(b) in other relevant land and relates to the imposition in respect of that land of:


(i) restrictions of a kind described in paragraph (2)(a) which correspond to those accepted by a party to the agreement in his capacity as holder of an interest in the relevant land; or

(ii) obligations which correspond to those accepted by a party to the agreement in his capacity as holder of an interest in the relevant land.

    (2) This article applies to a restriction which:

(a) restricts the activity that may be carried out on, from, or in connection with the relevant land or other relevant land and is accepted by a party to the agreement in his capacity as holder of an interest in the relevant land or other relevant land and is for the benefit of another party to the agreement in his capacity as holder of an interest in the relevant land;

(b) is accepted by a party to the agreement in his capacity as holder of an interest in other relevant land and relates to the imposition of restrictions on the activity that may be carried out on, from, or in connection with the other relevant land which correspond to those accepted by a party to the agreement in his capacity as holder of an interest in the relevant land; or

(c) restricts the freedom of a party to the agreement to create or transfer an interest in the relevant land to another person.

Withdrawal of exclusion etc.
     7. The power in paragraph 4 of Schedule 1 to the Act to withdraw the benefit of the exclusion from the Chapter I prohibition applies (with the exception of sub-paragraph (5)(b)) to the exclusion provided by Articles 3 and 5 as it applies to the exclusion provided by paragraph 1 of Schedule 1.

     8. Articles 3 and 5 do not apply to an agreement to the extent that it takes effect between the same parties and is to the like object or effect as an agreement which has been the subject of a direction under Article 7.


Kim Howells,
Parliamentary Under Secretary of State for Consumers and Corporate Affairs, Department of Trade and Industry

10th February 2000