The Trade and Cooperation Agreement between the European Union (‘EU’) and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland (‘UK’), of the other part, of 30 December 2020 (the ‘TCA’) provides for rules on cooperation and coordination in the field of competition law and enforcement. Article 361(4) TCA states that the parties may enter into a separate agreement on cooperation and coordination in competition matters. That supplementing agreement on competition cooperation will provide a framework for the existing cooperation.

On 8 June 2023, the Council authorised the Commission to open negotiations towards an agreement with the UK on cooperation and exchange of information in competition matters. The negotiations were concluded, at technical level, in October 2024.

The competition cooperation agreement is a supplementing agreement to the TCA, pursuant to Article 2 TCA. The TCA’s governance structure and territorial scope will therefore apply, with the exception of the dispute settlement mechanism which is not applicable to competition matters under the TCA.

The purpose of the competition cooperation agreement is to promote cooperation and coordination in competition matters between the competition authorities of the EU and its Member States, of the one part, and of the UK, of the other part, with a view to the more effective enforcement of the competition laws of the EU and of the UK. The competition cooperation agreement thus allows not only the Commission but also the national competition authorities of the EU Member States enforcing EU competition law, to directly cooperate with the competition authority of the UK (the Competition and Markets Authority).

The EU has concluded bilateral cooperation agreements in the area of competition policy with a view to structuring and facilitating the cooperation between the Commission and foreign competition authorities. Examples of competition cooperation agreements include those with the US 1 (1991), Canada 2 (1999), Japan 3 (2003) and South Korea (2009) 4 . These agreements contain various cooperation instruments in the area of competition policy and are considered to have been a success. Their main benefit is that they provide case-related cooperation with a structured framework and thereby contribute to the more efficient enforcement of competition law.

The aim of competition policy is to ensure that markets deliver more benefits to consumers, businesses and society as a whole. Competition policy therefore contributes to EU’s wider objectives, in particular to boost jobs, growth and investment. The Commission pursues this objective by enforcing competition rules, sanctioning infringements and promoting a culture of competition internationally.

Consumers in the EU and the UK will ultimately benefit from the better detection and sanctioning of infringements of competition rules, which will also act as a greater deterrent. More effective enforcement of competition rules creates more open and competitive markets, where companies compete more freely on their merits, enabling them to generate wealth and create jobs. It also offers consumers a better choice of products at lower prices.

The legal basis for EU action is provided by Articles 103 and 352 of the Treaty on the Functioning of the European Union (TFEU), in conjunction with Article 218(6)(a)(v) TFEU. Article 103 TFEU provides the legal basis for the implementation of Articles 101 and 102 TFEU. Article 352 provides a legal basis for Regulation (EC) No 139/2004 (the Merger Regulation), as the competition cooperation agreement also covers cooperation in merger investigations. Article 218(6)(a)(v) TFEU provides the legal basis for the Council to adopt the decision concluding the competition cooperation agreement, after having obtained the European Parliament’s consent.

The competition cooperation agreement falls within the EU’s exclusive competence in accordance with Article 3(1)(b) TFEU as it relates to competition rules that are necessary for the functioning of the internal market. The subsidiarity principle does not therefore apply.

The EU’s action goes no further than what is necessary to achieve the policy objective of improving existing international cooperation between the Commission and the UK Competition and Markets Authority. This improved cooperation can be better achieved through a binding agreement supplementing the TCA, concluded between the EU and the UK.

The competition cooperation agreement regulates administrative cooperation between the competition authorities of the EU and its Member States, of the one part, and that of the UK, of the other part. As far as the EU Member States are concerned, the agreement only applies to cooperation in the context of their enforcement of EU competition law, and not of their national laws.

The choice of instrument is mandated by the TCA and the Council Decision authorising the negotiation of the competition cooperation agreement.

Not applicable.

The EU Member States have been consulted regularly during the negotiation process via the Council Working Party on the UK. The Commission has also held exchanges with the national competition authorities forming the European Competition Network.

Not applicable.

An impact assessment was not needed. The competition cooperation agreement follows the instructions of the Council mandate, which did not provide for any other options for implementing that mandate.

Not applicable.

In the context of the cooperation covered by this agreement, personal data are protected by Commission Implementing Decision (EU) 2021/1772 of 28 June 2021 pursuant to Regulation (EU) 2016/679 of the European Parliament and of the Council on the adequate protection of personal data by the United Kingdom, and by Schedule 21 to the Data Protection Act 2018, as inserted by the UK Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2019, which relates to the adequate protection of personal data by the EU.

Furthermore, the competition cooperation agreement provides that personal data may only be shared for the purpose of investigations into the subject-matter for which those data were initially obtained.

The proposed agreement has no budgetary implications.

The Member States will, where relevant, take the necessary measures to give full effect to the agreement.

The competition cooperation agreement provides for the notification of enforcement activities which significantly affect the important interests of the other party and for rules on negative comity. Furthermore, the competition cooperation agreement contains provisions on practical cooperation between the Commission, the national competition authorities and the UK Competition and Markets Authority.

The competition cooperation agreement also empowers the Commission and the national competition authorities of the Member States when they apply EU competition law to discuss information with, transmit information to and receive information from the UK Competition and Markets Authority, and to use such information in evidence. The agreement allows for exchanges of information between the competition authorities to the extent permitted under the domestic law applicable to them. If used in evidence, information exchanged must only be used in respect of the subject-matter for which it was collected by the transmitting authority. The agreement also provides for rules on the confidentiality of the information shared under its provisions.

Furthermore, no change to existing domestic law, or any action by a competition authority that is inconsistent with existing domestic law, can be required on the basis of the agreement.

The competition cooperation agreement also governs how the parties exchange information on technical matters relating to the functioning of the agreement, how they communicate under the agreement and how they handle any accidental use or disclosure of information.