Council Approves Competition Agreement with the United Kingdom
By Decision (EU) 2026/2304 of 9 October 2026, the Council approved, on behalf of the European Union, the conclusion of the agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning cooperation in the application of their respective competition laws. The Decision was published in the Official Journal of the European Union on 19 October 2026.
The legal basis is Articles 103 and 352 of the Treaty on the Functioning of the European Union, in conjunction with Article 218(6), second subparagraph, point (a)(v), and Article 218(8), second subparagraph, TFEU (Treaty on the Functioning of the European Union). The Council acted on a proposal from the European Commission and after obtaining the consent of the European Parliament.
Purpose and Legal Classification of the Agreement
The agreement is intended to promote cooperation and coordination between the competition authorities of the Union and its Member States, on the one hand, and the competent authorities of the United Kingdom, on the other. It is intended to establish a framework for more effective enforcement of their respective competition laws.
Supplement to the Trade and Cooperation Agreement
Cooperation on competition matters was already possible under Article 361(2) of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom, of the other part. Article 361(4) also permits the parties to conclude a separate agreement on cooperation and coordination in this area.
The agreement now approved is a supplementing agreement within the meaning of Article 2 of the Trade and Cooperation Agreement. It is the first supplementing agreement to this framework since it entered into force in 2021.
The governance structure and territorial scope of the Trade and Cooperation Agreement also apply, in principle, to the competition agreement. However, its dispute settlement mechanism does not apply to the new agreement.
Involvement of National Competition Authorities
For the first time, a competition cooperation agreement of the European Union covers not only cooperation at Union level but also direct exchanges between the national competition authorities of the Member States and the UK Competition and Markets Authority.
Comparable competition cooperation agreements exist between the European Union and the following countries:
- A corresponding agreement with the United States has been in place since 1991.
- Such an agreement was concluded with Canada in 1999.
- Cooperation with Japan is based on an agreement dating from 2003.
- A comparable framework has been in place with South Korea since 2009.
- A corresponding agreement with Switzerland dates from 2013.
Scope of Cooperation Between the Authorities
The participating authorities are to notify one another of major antitrust and merger proceedings. Where necessary, they may coordinate their enforcement activities. At the same time, they are required to preserve the confidentiality of information exchanged as part of their cooperation.
UK Legislation Covered
On the UK side, the agreement concerns the enforcement of the Competition Act 1998, the Enterprise Act 2002 and the Company Directors Disqualification Act 1986. The corresponding Northern Irish legislation from 2002 is also included.
The Digital Markets, Competition and Consumers Act 2024 does not fall within the scope of the agreement. The scope of the agreed cooperation is therefore limited to the competition legislation specified in the agreement.
Protection of Personal Data
The Council also refers to European Commission Implementing Decision (EU) 2021/1772 of 28 June 2021. In that Decision, the Commission recognised that the United Kingdom ensures an adequate level of protection for personal data transferred from the Union to the United Kingdom under the General Data Protection Regulation.
In addition, the European Data Protection Supervisor was consulted pursuant to Article 42(1) of Regulation (EU) 2018/1725. The Supervisor delivered its opinion on 15 July 2025.
Negotiations, Signature and Consent
On 8 June 2023, the Council authorised the European Commission to open negotiations. The technical discussions were concluded in October 2024, and agreement on the draft text was reached on 29 October 2024. On 20 May 2025, the Commission submitted its proposals for signature and conclusion to the Council.
Signature in February 2026
On the basis of Decision (EU) 2025/2376, the agreement was signed in Brussels on 25 February 2026. Its signature was subject to its subsequent conclusion. Teresa Ribera, Executive Vice-President of the European Commission, signed on behalf of the European Union.
In the United Kingdom, the agreement was published as Command Paper CP 1566 and laid before Parliament on 15 April 2026. The parliamentary scrutiny period under the Constitutional Reform and Governance Act 2010 ended on 1 June 2026.
Consent of the European Parliament
The European Parliament’s Committee on Economic and Monetary Affairs approved the agreement on 15 July 2026. The plenary gave its consent on 16 September 2026. The Council subsequently approved the agreement on behalf of the Union by Decision (EU) 2026/2304.
The text of the agreement was published in the Official Journal of the European Union on 19 October 2026.
Entry into Force of the Decision and the Agreement
Article 2 of Decision (EU) 2026/2304 provides that the Council Decision enters into force on the date of its adoption. The relevant date is therefore 9 October 2026.
This must be distinguished from the entry into force of the agreement itself. Under its final provision, it will take effect on the first day of the second month after both parties have notified each other of the completion of their respective internal procedures. The Council Decision therefore does not specify a particular date. The date on which the agreement enters into force will be published in the Official Journal of the European Union by the General Secretariat of the Council.
Significance for Cross-Border Competition Matters
The agreement establishes an institutional framework for exchanges between the competition authorities of the European Union, its Member States and the United Kingdom. For companies engaged in cross-border activities, the notification of major antitrust and merger proceedings, the potential coordination of enforcement activities and the stipulated confidentiality requirements may be particularly significant.
MTR Legal Rechtsanwälte advises companies, investors and high-net-worth individuals on matters with a cross-border dimension. Further information on professional assistance in this area is available under competition law advice.
