Competition Law at Gibraltar (BOT)
Gibraltar, as a British Overseas Territory, has established a structured framework for competition law and consumer protection, primarily governed by the Competition Act 2020 and the Fair Trading Act 2023. These legislations are enforced by the Office of Fair Trading (OFT), a statutory regulator set up by Her Majesty’s Government of Gibraltar.
🏛️ Legal Framework
Competition Act 2020
The Competition Act 2020 serves as the cornerstone of Gibraltar's competition law. Key provisions include:
Prohibition of Anti-Competitive Agreements: It is unlawful for businesses to enter into agreements that prevent, restrict, or distort competition within Gibraltar.
Abuse of Dominant Position: Firms holding a dominant market position are prohibited from abusing that position to the detriment of competition and consumers.
Merger Control: The Act provides a framework for assessing and controlling mergers and acquisitions that may significantly reduce or distort competition.
Enforcement and Penalties: The Gibraltar Competition and Markets Authority (GCMA) is empowered to investigate and impose penalties for infringements, including fines up to 10% of the undertaking's turnover.
Subsidiary legislation, such as the Competition (Anticipated Mergers) Order 2021 and the Competition (Appealable Decisions) Regulations 2021, provides detailed procedural rules.
Fair Trading Act 2023
The Fair Trading Act 2023 (FTA23), effective from 1st October 2023, complements the Competition Act by focusing on consumer protection and business practices. Its objectives include:(Mondaq)
Consumer Protection: Ensuring that consumers are not subjected to unfair business practices.
Business Licensing: Streamlining the licensing process for businesses operating in Gibraltar.
Enforcement Powers: Granting the OFT enhanced powers to investigate and sanction businesses that harm consumer interests.
The FTA23 also establishes the Decision Making Committee (DMC), which replaces the Business Licensing Authority (BLA) and is responsible for making decisions on licensing and enforcement matters.
🏢 Role of the Office of Fair Trading (OFT)
The Office of Fair Trading (OFT) is the primary body responsible for enforcing competition and consumer protection laws in Gibraltar. Its functions include:
Investigation: Examining business practices that may harm consumer interests.
Enforcement: Taking action against businesses that violate competition and consumer protection laws.
Education and Guidance: Providing information to consumers and businesses about their rights and responsibilities.
Licensing: Regulating businesses to ensure compliance with legal requirements.
The OFT operates under the legal framework established by the Fair Trading Act 2023 and its subsidiary legislation.
⚖️ Enforcement and Sanctions
The OFT, with the assistance of the DMC, has the authority to impose various sanctions on businesses that breach competition and consumer protection laws. These include:
Administrative Penalties: Fines payable to the OFT.
Cease and Desist Orders: Directives requiring businesses to stop certain practices.
Compensation Orders: Mandates for businesses to compensate consumers affected by unfair practices.
Licence Interventions: Suspension or revocation of business licenses.
📌 Recent Developments
In early 2025, the OFT initiated checks on cross-border businesses to ensure they possess valid local licenses. This action aims to address concerns about unlicensed traders operating in Gibraltar, particularly from neighboring Spain, and to maintain a level playing field for all businesses.
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