UK businesses with a branch operating in the EU will become a third country business in the event of a no deal which means that your business will need to comply with specific accounting and reporting requirements in each country.
After leaving the EU the role of policing and ensuring fair competition in UK markets (including state aid) will fully transfer to British regulators and agencies. This could result in differences to the current approach – for instance on approvals for mergers and acquisitions.
The Competition and Markets Authority (CMA) has published a notice on its role after Brexit.
CMA's role after Brexit
And another for the specific case of a ‘no-deal’ exit from the EU.
Effects of a 'no deal' EU Exit on the functions of the CMA
If there is no Brexit withdrawal agreement before March 2019, the government has developed a ‘no deal’ competition Statutory Instrument (SI):
Mergers: If the European Commission has issued a decision on or before the day the UK leaves the EU (unless the decision is annulled, in full or in part, following an appeal), the UK has no jurisdiction. UK-EU mergers will now occur via private contracts, not through the EU regime. Seek legal advice on individual ongoing merger cases.
State aid: The government is expected to pass secondary legislation which will transpose EU state aid rules into UK law and provide for the CMA to take on its new state aid role, following which they will publish further details on how this function will operate.
Antitrust: After the UK’s exit from the EU, the CMA will no longer have jurisdiction to apply anti-competitive agreements including cartels or on abuse of dominance.
In the event of a ‘no deal’, regulations on personal data transfers and mobile roaming will change.
The Government have published guidance for using personal data after Brexit:https://www.gov.uk/guidance/using-personal-data-after-brexit
The Information Commissioner’s Office (ICO) has published a checklist of six steps that businesses can take now to start preparing for data protection compliance if the UK leaves the EU without a deal: https://ico.org.uk/media/for-organisations/documents/2553958/leaving-the-eu-six-steps-to-take.pdf
More detailed information on this can be found here: https://ico.org.uk/for-organisations/data-protection-and-brexit/data-protection-if-there-s-no-brexit-deal/
UK companies retailing to consumers or trading ‘information and data services’ (e.g. video sharing, social media platforms and internet service providers) across the EU would face changes to their regulatory environment in the event of a ‘no-deal’ Brexit.
Do you know if the EU’s eCommerce Directive is relevant to your business?
Does your business operate any websites with a ‘.eu’ domain name registration?
The Department for Culture Media and Sport has produced official guidance for businesses engaged in contingency planning for Brexit.
This guidance provides businesses with information about the eCommerce Directive and sets out the government's approach to contingency planning for a ‘no-deal’ scenario. In this case, although there would be continuity in some areas there would be also be changes – such as the Directive's country of origin principle, which UK companies would cease to benefit from.
eCommerce EU Exit Guidance
DCMS has produced official guidance for companies with existing domain name registrations under ‘.eu’ or an interest in registering a domain name under ‘.eu’ in the event of a ‘no-deal’ Brexit.
Guidance on '.eu' top domain names
If the UK leaves the EU without a deal, your business may need to consider the following changes relating to product safety and metrology:
Guidance on amended legislation for businesses and regulators that will apply if the UK leaves the EU on Exit Day without a deal can be found here:
In the event of a ‘no deal’, businesses will have to follow new regulations and standards for trading goods and products across the EU
The Department for Business, Energy & Industrial Strategy have published guidance across the following areas:
Regulations and standards after Brexit: https://www.gov.uk/guidance/regulations-and-standards-after-brexit
Regulatory requirements for manufactured goods after Brexit:https://www.gov.uk/government/publications/manufactured-goods-regulatory-requirements-after-brexit
There are UK Government Brexit technical notices on regulation for specific sectors. These can be found on our checklist here: https://www.britishchambers.org.uk/page/brexit/business-brexit-checklist/sectors
For cross-cutting regulatory issues, technical notices can be found here:https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal