Non competition agreements

[Cogcog]

I know many companies have clauses with employees and contractors/associates don't then compete with them but I wonder if a more general non competition agreement between businesses is legal?

I am a limited company and have come under pressure not to submit tenders in competition to a company I sub-contract to. Usually they tender with me as a named contractor but in some cases they think they have sufficient internal resources but are now insisting I then don't tender in competition with them. There are no IPO issues. The obvious threat is that if I compete with them on jobs then I wont be on the list for other work.

In the back of my mind I thought that might not be legal but is that just related to price fixing?

[blueg33]

Yes. We use them all the time. Confidentiality, non compete, non circumvention.

[AyBee]

I assume that's supposed to be sub-contract for rather than to? They're perfectly legal, but if they're starting to do work without you, is that going to continue? Would they be willing to guarantee you a certain amount of work in return for you not competing?