The proposed agreement will be a ‘supplementing agreement’ to the post-Brexit EU-UK Trade and Cooperation Agreement (TCA), which explicitly foresaw the possibility of separate agreement on competition co-operation.

Once in force, the agreement will allow the European Commission, the national competition authorities of EU member states and the UK’s Competition and Markets Authority (CMA) to cooperate directly in competition investigations.

It will be the first EU competition co-operation agreement enabling national competition authorities to co-operate directly with a third country competition authority.

The agreement will set out that important antitrust and merger investigations are brought to each other’s attention. It will also allow the coordination of investigations between the jurisdictions involved when necessary and set out clear principles of co-operation aimed at avoiding any conflicts between jurisdictions.

Regarding the exchange of confidential information, the consent of the undertaking providing the information will continue to be required.

The agreement will enter into force after both the EU and the UK have finalised their ratification procedures.

Margrethe Vestager, the European Commission’s executive vice-president in charge of competition policy, said: “With this agreement, the EU and the UK will work together on competition matters in a predictable and transparent framework, exploiting the full potential of the TCA.

“This agreement strengthens our relationship and will help to ensure that enforcement is coordinated between our jurisdictions, to the ultimate benefit of European business and consumers.”

The UK’s business and trade secretary, Jonathan Reynolds, said: “This forthcoming agreement recognises the importance of our continued cooperation between UK and EU competition authorities. This milestone underscores our shared recognition of the importance of international cooperation in an increasingly globalised economy.

“When competition law is enforced well across global markets, it helps to ensure businesses and consumers are protected while supporting economic growth, which is why this agreement is so important.”

Sarah Cardell, CEO of the UK’s Competition and Markets Authority (CMA), said: “We welcome this cooperation agreement, which will allow us to work even more closely with EU competition authorities on shared cases and common competition issues – without unnecessary barriers. 

“Effective competition has a key role to play in driving economic growth so, with many companies now operating globally, it’s important that competition authorities can cooperate more freely with each other to get the best outcomes for fair-playing businesses and consumers.”