This clause requires you to follow laws that prevent companies from unfairly blocking competitors or fixing prices with rival companies. In the UK (Competition Act 1998) and the US (Sherman Act), it's illegal for companies to secretly agree with competitors to charge the same price, divide up customers, or share confidential information. The clause typically tells you not to discuss pricing, customer lists, or business strategy with employees of rival companies, and to report any competitor who suggests illegal cooperation. Breaking competition law can result in huge fines for the company and criminal charges for individuals involved.
This is a straightforward clause that protects you by keeping you out of legal trouble—simply follow it by never discussing sensitive business information with competitors and reporting any suspicious approaches. If you're unsure whether a conversation crosses the line, ask your compliance officer before speaking to someone from a rival company. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires you to follow laws that prevent companies from unfairly blocking competitors or fixing prices with rival companies.
Why should I care about this clause?
In the UK (Competition Act 1998) and the US (Sherman Act), it's illegal for companies to secretly agree with competitors to charge the same price, divide up customers, or share confidential information.
What are my options?
The clause typically tells you not to discuss pricing, customer lists, or business strategy with employees of rival companies, and to report any competitor who suggests illegal cooperation.
How does this affect small businesses?
Breaking competition law can result in huge fines for the company and criminal charges for individuals involved.