As negotiations between the European Union (EU) and UK enter their final stages, the outcome of Brexit rests on a knife’s edge. The expiry of the transition period on 31 December 2020 (“Transition Period”) is fast approaching and, with that, the risk that the UK will leave with a so-called “Australia-style” relationship, that is to say, a trading relationship based on standard WTO rules.
What is certain, regardless of the negotiations, is that companies will have to navigate a competition landscape that has the UK as a standalone regime in all respects — even if with a heavy EU influence. Dealing with both the EU and UK competition authorities on the same merger or behavioural investigation will be routine, adding costs and complexity.