Fair competition – why it matters for the Environmental Services Association

Fair competition – why it matters for the Environmental Services Association

Fair competition – why it matters for the Environmental Services Association

Fair competition – why it matters for the Environmental Services Association

Free advice to help you stay on the right side of competition law and call out harmful practices

The Competition and Markets Authority (CMA) is the UK’s competition and consumer protection watchdog. Our mission is to keep markets open, so that fair-dealing businesses – large and small – can thrive, contributing to the sustainable growth of the wider economy, benefiting people, businesses and the marketplace as a whole. 

We view waste management as being of critical importance to the UK economy, and it is therefore vital that as a business operating in recycling and waste management you can compete on a level playing field where innovation is rewarded.

Competition enables the development of new, green technologies and allows customers to freely access them.  We recognise that cooperation between firms that would otherwise compete may sometimes be necessary to secure the innovation required to help protect our environment and achieve net zero ambitions. The CMA is keen to help businesses take action on climate change and environmental sustainability, without undue fear of breaching competition law.

With this in mind, the CMA has published Green Agreements Guidance for businesses –explaining how competition law applies to environmental sustainability agreements between firms operating at the same level of the supply chain. It explains that the CMA does not expect to take enforcement action against agreements that are in line with the guidance. For companies (and representative bodies such as trade associations), non-governmental organisations and charities still in doubt, we have an open-door policy through which you can approach us for informal guidance on proposed environmental sustainability agreements you are considering.

We also have clear guidance on practices that are never permissible, such as when rivals collude instead of competing independently, harming customers and fair businesses. Our Cheating or Competing campaign page offers free guides and explainer films on illegal activities like price-fixing, market sharing, bid-rigging, and illegal information exchange. The consequences of breaking competition law are serious, including heavy fines, director disqualification, and possible debarment from public contracts.

Companies that are the first to report involvement in a cartel and fully cooperate with investigations may receive immunity from fines, while employees and directors can avoid criminal prosecution and disqualification through our leniency programme. Individuals may also avoid prosecution or disqualification if they come forward independently and cooperate. If you believe you may have broken competition law, we recommend seeking independent legal advice.

If you have information about other companies that you suspect may be involved in anti-competitive arrangements, you can report it to us here —you could be eligible for a reward.

The CMA’s heat maps of warning and advisory letters demonstrate that all businesses, regardless of location, size or sector can come under CMA scrutiny to ensure fair dealing businesses and consumers are protected. 

Being clear on what you need to know to comply with the law is critical.  The CMA is happy to deliver a presentation on sustainability agreements, outlining the red lines to be clear on. To request a CMA presentation contact: t-lockhart@esauk.org