British food manufacturers unite for a call to action of the government to temporarily suspend the competition law among food and drinks firms to avoid hefty penalties for possible collusion which will take effect once the no-deal Brexit disrupts the food supply.
The food and drink manufacturers have collaboration boundaries set by the Competitions and Markets Authority (CMA) as part of the existing competition law to protect public consumers.
The Food and Drink Federation (FDF) said that the government is yet to approve the suspension of the competition law that when approved, will help consumers avoid food supply shortage by manufacturers collaborating to supply goods at agreed conditions.
Amid the impending no-deal Brexit that will commence in October, trade experts foresee food import delays.
By deciding where to prioritize the shipping of goods, food and drinks manufacturers collaborate to avoid goods shortages in certain areas. Under the competition law, this act is punishable and food and drink companies might be fined with large amounts as they breach the market principles.
The governing body, CMA, apparently has no power to lift the fines in accordance with the law, as the government has the sole authority to lift it temporarily on special cases.
Having done it several occasions in the past, the British government is expected to lift the competition law as the FDF demands.