Legalize / United Kingdom / Public General Act

Competition Act 1998

Type Public General Act

Publication 1998-11-09

Last updated 2026-01-27

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Part I — Competition

Chapter I — Agreements

Introduction

Power to enter business premises under a warrant.

1

The following shall cease to have effect—

(a) the Restrictive Practices Court Act 1976 (c. 33),

(b) the Restrictive Trade Practices Act 1976 (c. 34),

(d) the Restrictive Trade Practices Act 1977 (c. 19).

The prohibition

General restrictions on disclosure of information.

2

(1) Subject to section 3, agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom and which—

(a) in the case of agreements, decisions or practices implemented, or intended to be implemented in the United Kingdom, may affect trade in the United Kingdom, or

(b) in any other case, are likely to have an immediate, substantial and foreseeable effect on trade within the United Kingdom,

are prohibited unless they are exempt in accordance with the provisions of this Part.

(2) Subsection (1) applies, in particular, to agreements, decisions or practices which—

(a) directly or indirectly fix purchase or selling prices or any other trading conditions;

(b) limit or control production, markets, technical development or investment;

(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Any agreement or decision which is prohibited by subsection (1) is void.

(5) A provision of this Part which is expressed to apply to, or in relation to, an agreement is to be read as applying equally to, or in relation to, a decision by an association of undertakings or a concerted practice (but with any necessary modifications).

(6) Subsection (5) does not apply where the context otherwise requires.

(7) In this section “the United Kingdom” means, in relation to an agreement which operates or is intended to operate only in a part of the United Kingdom, that part.

(8) The prohibition imposed by subsection (1) is referred to in this Act as “the Chapter I prohibition”.

Excluded agreements

3

(1) The Chapter I prohibition does not apply in any of the cases in which it is excluded by or as a result of—

(a) Schedule 1 (mergers and concentrations);

(b) Schedule 2 (competition scrutiny under other enactments);

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The Secretary of State may at any time by order amend Schedule 1, with respect to the Chapter I prohibition, by—

(a) providing for one or more additional exclusions; or

(b) amending or removing any provision (whether or not it has been added by an order under this subsection).

(3) The Secretary of State may at any time by order amend Schedule 3, with respect to the Chapter I prohibition, by—

(a) providing for one or more additional exclusions; or

(b) amending or removing any provision—

(i) added by an order under this subsection; or

(ii) included in paragraph 1 ... or 9 of Schedule 3.

(4) The power under subsection (3) to provide for an additional exclusion may be exercised only if it appears to the Secretary of State that agreements which fall within the additional exclusion—

(a) do not in general have an adverse effect on competition, or

(b) are, in general, best considered under Chapter II or the Fair Trading Act 1973the Enterprise Act 2002.

(5) An order under subsection (2)(a) or (3)(a) may include provision (similar to that made with respect to any other exclusion provided by the relevant Schedule) for the exclusion concerned to cease to apply to a particular agreement.

(6) Schedule 3 also gives the Secretary of State power to exclude agreements from the Chapter I prohibition in certain circumstances.

Exemptions

Individual exemptions

4

(1) The OFT may grant an exemption from the Chapter I prohibition with respect to a particular agreement if—

(a) a request for an exemption has been made to it under section 14 by a party to the agreement; and

(b) the agreement is one to which section 9 applies.

(2) An exemption granted under this section is referred to in this Part as an individual exemption.

(3) The exemption—

(a) may be granted subject to such conditions or obligations as the OFT considers it appropriate to impose; and

(b) has effect for such period as the OFT considers appropriate.

(4) That period must be specified in the grant of the exemption.

(5) An individual exemption may be granted so as to have effect from a date earlier than that on which it is granted.

(6) On an application made in such way as may be specified by rules under section 51, the OFT may extend the period for which an exemption has effect; but, if the rules so provide, it may do so only in specified circumstances.

Cancellation etc. of individual exemptions

5

(1) If the OFT has reasonable grounds for believing that there has been a material change of circumstance since it granted an individual exemption, it may by notice in writing—

(a) cancel the exemption;

(b) vary or remove any condition or obligation; or

(2) If the OFT has a reasonable suspicion that the information on which it based its decision to grant an individual exemption was incomplete, false or misleading in a material particular, it may by notice in writing take any of the steps mentioned in subsection (1).

(3) Breach of a condition has the effect of cancelling the exemption.

(4) Failure to comply with an obligation allows the OFT, by notice in writing, to take any of the steps mentioned in subsection (1).

(5) Any step taken by the OFT under subsection (1), (2) or (4) has effect from such time as may be specified in the notice.

(6) If an exemption is cancelled under subsection (2) or (4), the date specified in the notice cancelling it may be earlier than the date on which the notice is given.

(7) The OFT may act under subsection (1), (2) or (4) on its own initiative or on a complaint made by any person.

Block exemptions

6

(1) If agreements which fall within a particular category of agreement are, in the opinion of the CMA, likely to be exempt agreements, the CMA may recommend that the Secretary of State make an order specifying that category for the purposes of this section.

(2) The Secretary of State may make an order (“a block exemption order”) giving effect to such a recommendation—

(a) in the form in which the recommendation is made; or

(b) subject to such modifications as he considers appropriate.

(3) An agreement which falls within a category specified in a block exemption order is exempt from the Chapter I prohibition.

(4) An exemption under this section is referred to in this Part as a block exemption.

(5) A block exemption order may impose conditions or obligations subject to which a block exemption is to have effect.

(6) A block exemption order may provide—

(a) that breach of a condition imposed by the order has the effect of cancelling the block exemption in respect of an agreement;

(b) that if there is a failure to comply with an obligation imposed by the order, the CMA may, by notice in writing, cancel the block exemption in respect of the agreement;

(c) that if the CMA considers that a particular agreement is not an exempt agreement, it may cancel the block exemption in respect of that agreement.

(7) A block exemption order may provide that the order is to cease to have effect at the end of a specified period.

(8) In this section—

“exempt agreement” means an agreement which is exempt from the Chapter I prohibition as a result of section 9; and

“specified” means specified in a block exemption order.

Block exemptions: opposition

7

(1) A block exemption order may provide that a party to an agreement which—

(a) does not qualify for the block exemption created by the order, but

(b) satisfies specified criteria,

may notify the OFT of the agreement for the purposes of subsection (2).

(2) An agreement which is notified under any provision included in a block exemption order by virtue of subsection (1) is to be treated, as from the end of the notice period, as falling within a category specified in a block exemption order unless the OFT—

(a) is opposed to its being so treated; and

(b) gives notice in writing to the party concerned of its opposition before the end of that period.

(3) If the OFT gives notice of its opposition under subsection (2), the notification under subsection (1) is to be treated as both notification under section 14 and as a request for an individual exemption made under subsection (3) of that section.

(4) In this section “notice period” means such period as may be specified with a view to giving the OFT sufficient time to consider whether to oppose under subsection (2).

Block exemptions: procedure

8

(1) Before making a recommendation under section 6(1), the CMA must—

(a) publish details of its proposed recommendation in such a way as it thinks most suitable for bringing it to the attention of those likely to be affected; and

(b) consider any representations about it which are made to it.

(2) If the Secretary of State proposes to give effect to such a recommendation subject to modifications, he must inform the CMA of the proposed modifications and take into account any comments made by the CMA .

(3) If, in the opinion of the CMA , it is appropriate to vary or revoke a block exemption order it may make a recommendation to that effect to the Secretary of State.

(4) Subsection (1) also applies to any proposed recommendation under subsection (3).

(5) Before exercising its power to vary or revoke a block exemption order (in a case where there has been no recommendation under subsection (3)), the Secretary of State must—

(a) inform the CMA of the proposed variation or revocation; and

(b) take into account any comments made by the CMA .

(6) A block exemption order may provide for a block exemption to have effect from a date earlier than that on which the order is made.

The criteria for individual and block exemptions

9

(1) An agreement is exempt from the Chapter I prohibition if it—

(a) contributes to—

(i) improving production or distribution, or

(ii) promoting technical or economic progress,

while allowing consumers a fair share of the resulting benefit; and

(b) does not—

(i) impose on the undertakings concerned restrictions which are not indispensable to the attainment of those objectives; or

(ii) afford the undertakings concerned the possibility of eliminating competition in respect of a substantial part of the products in question.

(2) In any proceedings in which it is alleged that the Chapter I prohibition is being or has been infringed by an agreement, any undertaking or association of undertakings claiming the benefit of subsection (1) shall bear the burden of proving that the conditions of that subsection are satisfied.

Parallel exemptions

10

(A1) An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in an assimilated block exemption regulation.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An exemption from the Chapter I prohibition under this section is referred to in this Part as an assimilated exemption.

(4) An assimilated exemption—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) ceases to have effect—

(i) if the relevant assimilated block exemption regulation ceases to have effect; or

(ii) on being cancelled by virtue of subsection (5) or (7).

(5) In such circumstances and manner as may be specified in rules made under section 51, the CMA may—

(a) impose conditions or obligations subject to which an assimilated exemption is to have effect in respect of an agreement;

(b) vary or remove any such condition or obligation;

(d) cancel the exemption in respect of an agreement.

(6) In such circumstances as may be specified in rules made under section 51, the date from which cancellation of an exemption is to take effect may be earlier than the date on which notice of cancellation is given.

(7) Breach of a condition imposed by the CMA has the effect of cancelling the exemption.

(8) In exercising its powers under this section, the CMA may require any person who is a party to the agreement in question to give it such information as it may require.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) In this Part, “assimilated block exemption regulation” means the following regulations as amended from time to time—

(a) Council Regulation (EC) 169/2009 applying rules of competition to transport by rail, road and inland waterway;

(b) Commission Regulation (EC) 906/2009 on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia);

(c) Commission Regulation (EU) 330/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices;

(d) Commission Regulation (EU) 461/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector;

(e) Commission Regulation (EU) 1217/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of research and development agreements;

(f) Commission Regulation (EU) 1218/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of specialisation agreements;

(g) Commission Regulation (EU) 316/2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements.

Exemption for certain other agreements

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification

Requests for Director to examine agreements

12

(1) Sections 13 and 14 provide for an agreement to be examined by the OFT on the application of a party to the agreement who thinks that it may infringe the Chapter I prohibition.

(2) Schedule 5 provides for the procedure to be followed—

(a) by any person making such an application; and

(b) by the OFT, in considering such an application.

(3) The Secretary of State may by regulations make provision as to the application of sections 13 to 16 and Schedule 5, with such modifications (if any) as may be prescribed, in cases where the OFT—

(a) has given a direction withdrawing an exclusion; or

(b) is considering whether to give such a direction.

Notification for guidance

13

(1) A party to an agreement who applies for the agreement to be examined under this section must—

(a) notify the OFT of the agreement; and

(b) apply to the OFT for guidance.

(2) On an application under this section, the OFT may give the applicant guidance as to whether or not, in its view, the agreement is likely to infringe the Chapter I prohibition.

(3) If the OFT considers that the agreement is likely to infringe the prohibition if it is not exempt, its guidance may indicate—

(a) whether the agreement is likely to be exempt from the prohibition under—

(i) a block exemption;

(ii) a parallel exemption; or

(iii) a section 11 exemption; or

(b) whether it would be likely to grant the agreement an individual exemption if asked to do so.

(4) If an agreement to which the prohibition applies has been notified to the OFT under this section, no penalty is to be imposed under this Part in respect of any infringement of the prohibition by the agreement which occurs during the period—

(a) beginning with the date on which notification was given; and

(b) ending with such date as may be specified in a notice in writing given to the applicant by the OFT when the application has been determined.

(5) The date specified in a notice under subsection (4)(b) may not be earlier than the date on which the notice is given.

Notification for a decision

14

(1) A party to an agreement who applies for the agreement to be examined under this section must—

(a) notify the OFT of the agreement; and

(b) apply to the OFT for a decision.

(2) On an application under this section, the OFT may make a decision as to—

(a) whether the Chapter I prohibition has been infringed; and

(b) if it has not been infringed, whether that is because of the effect of an exclusion or because the agreement is exempt from the prohibition.

(3) If an agreement is notified to the OFT under this section, the application may include a request for the agreement to which it relates to be granted an individual exemption.

(4) If an agreement to which the prohibition applies has been notified to the OFT under this section, no penalty is to be imposed under this Part in respect of any infringement of the prohibition by the agreement which occurs during the period—

(a) beginning with the date on which notification was given; and

(b) ending with such date as may be specified in a notice in writing given to the applicant by the OFT when the application has been determined.

(5) The date specified in a notice under subsection (4)(b) may not be earlier than the date on which the notice is given.

Effect of guidance

15

(1) This section applies to an agreement if the OFT has determined an application under section 13 by giving guidance that—

(a) the agreement is unlikely to infringe the Chapter I prohibition, regardless of whether or not it is exempt;

(b) the agreement is likely to be exempt under—

(i) a block exemption;

(ii) a parallel exemption; or

(iii) a section 11 exemption; or

(2) The OFT is to take no further action under this Part with respect to an agreement to which this section applies, unless—

(a) it has reasonable grounds for believing that there has been a material change of circumstance since it gave its guidance;

(b) it has a reasonable suspicion that the information on which it based its guidance was incomplete, false or misleading in a material particular;

(d) a complaint about the agreement has been made to it by a person who is not a party to the agreement.

(3) No penalty may be imposed under this Part in respect of any infringement of the Chapter I prohibition by an agreement to which this section applies.

(4) But the OFT may remove the immunity given by subsection (3) if—

(a) it takes action under this Part with respect to the agreement in one of the circumstances mentioned in subsection (2);

(b) it considers it likely that the agreement will infringe the prohibition; and

(c) it gives notice in writing to the party on whose application the guidance was given that it is removing the immunity as from the date specified in its notice.

(5) If the OFT has a reasonable suspicion that information—

(a) on which it based its guidance, and

(b) which was provided to it by a party to the agreement,

was incomplete, false or misleading in a material particular, the date specified in a notice under subsection (4)(c) may be earlier than the date on which the notice is given.

Effect of a decision that the Chapter I prohibition has not been infringed

16

(1) This section applies to an agreement if the OFT has determined an application under section 14 by making a decision that the agreement has not infringed the Chapter I prohibition.

(2) The OFT is to take no further action under this Part with respect to the agreement unless—

(a) it has reasonable grounds for believing that there has been a material change of circumstance since it gave its decision; or

(b) it has a reasonable suspicion that the information on which it based its decision was incomplete, false or misleading in a material particular.

(3) No penalty may be imposed under this Part in respect of any infringement of the Chapter I prohibition by an agreement to which this section applies.

(4) But the OFT may remove the immunity given by subsection (3) if—

(a) it takes action under this Part with respect to the agreement in one of the circumstances mentioned in subsection (2);

(b) it considers that it is likely that the agreement will infringe the prohibition; and

(c) it gives notice in writing to the party on whose application the decision was made that it is removing the immunity as from the date specified in its notice.

(5) If the OFT has a reasonable suspicion that information—

(a) on which it based its decision, and

(b) which was provided to it by a party to the agreement,

was incomplete, false or misleading in a material particular, the date specified in a notice under subsection (4)(c) may be earlier than the date on which the notice is given.

Chapter II — Abuse of Dominant Position

Introduction

Enactments replaced

17

Sections 2 to 10 of the Competition Act 1980 (control of anti-competitive practices) shall cease to have effect.

The prohibition

Abuse of dominant position

18

(1) Subject to section 19, any conduct on the part of one or more undertakings which amounts to the abuse of a dominant position in a market is prohibited if it may affect trade within the United Kingdom.

(2) Conduct may, in particular, constitute such an abuse if it consists in—

(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

(b) limiting production, markets or technical development to the prejudice of consumers;

(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of the contracts.

(3) In this section—

“dominant position” means a dominant position within the United Kingdom; and

“the United Kingdom” means the United Kingdom or any part of it.

(4) The prohibition imposed by subsection (1) is referred to in this Act as “the Chapter II prohibition”.

Excluded cases

19

(1) The Chapter II prohibition does not apply in any of the cases in which it is excluded by or as a result of—

(a) Schedule 1 (mergers and concentrations); or

(b) Schedule 3 (general exclusions).

(2) The Secretary of State may at any time by order amend Schedule 1, with respect to the Chapter II prohibition, by—

(a) providing for one or more additional exclusions; or

(b) amending or removing any provision (whether or not it has been added by an order under this subsection).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Schedule 3 also gives the Secretary of State power to provide that the Chapter II prohibition is not to apply in certain circumstances.

Notification

Requests for Director to consider conduct

20

(1) Sections 21 and 22 provide for conduct of a person which that person thinks may infringe the Chapter II prohibition to be considered by the OFT on the application of that person.

(2) Schedule 6 provides for the procedure to be followed—

(a) by any person making an application, and

(b) by the OFT, in considering an application.

Notification for guidance

21

(1) A person who applies for conduct to be considered under this section must—

(a) notify the OFT of it; and

(b) apply to the OFT for guidance.

(2) On an application under this section, the OFT may give the applicant guidance as to whether or not, in its view, the conduct is likely to infringe the Chapter II prohibition.

Notification for a decision

22

(1) A person who applies for conduct to be considered under this section must—

(a) notify the OFT of it; and

(b) apply to the OFT for a decision.

(2) On an application under this section, the OFT may make a decision as to—

(a) whether the Chapter II prohibition has been infringed; and

(b) if it has not been infringed, whether that is because of the effect of an exclusion.

Effect of guidance

23

(1) This section applies to conduct if the OFT has determined an application under section 21 by giving guidance that the conduct is unlikely to infringe the Chapter II prohibition.

(2) The OFT is to take no further action under this Part with respect to the conduct to which this section applies, unless—

(a) it has reasonable grounds for believing that there has been a material change of circumstance since it gave its guidance;

(b) it has a reasonable suspicion that the information on which it based its guidance was incomplete, false or misleading in a material particular; or

(3) No penalty may be imposed under this Part in respect of any infringement of the Chapter II prohibition by conduct to which this section applies.

(4) But the OFT may remove the immunity given by subsection (3) if—

(a) it takes action under this Part with respect to the conduct in one of the circumstances mentioned in subsection (2);

(b) it considers that it is likely that the conduct will infringe the prohibition; and

(c) it gives notice in writing to the undertaking on whose application the guidance was given that it is removing the immunity as from the date specified in its notice.

(5) If the OFT has a reasonable suspicion that information—

(a) on which it based its guidance, and

(b) which was provided to it by an undertaking engaging in the conduct,

was incomplete, false or misleading in a material particular, the date specified in a notice under subsection (4)(c) may be earlier than the date on which the notice is given.

Effect of a decision that the Chapter II prohibition has not been infringed

24

(1) This section applies to conduct if the OFT has determined an application under section 22 by making a decision that the conduct has not infringed the Chapter II prohibition.

(2) The OFT is to take no further action under this Part with respect to the conduct unless—

(a) it has reasonable grounds for believing that there has been a material change of circumstance since it gave its decision; or

(b) it has a reasonable suspicion that the information on which it based its decision was incomplete, false or misleading in a material particular.

(3) No penalty may be imposed under this Part in respect of any infringement of the Chapter II prohibition by conduct to which this section applies.

(4) But the OFT may remove the immunity given by subsection (3) if—

(a) it takes action under this Part with respect to the conduct in one of the circumstances mentioned in subsection (2);

(b) it considers that it is likely that the conduct will infringe the prohibition; and

(c) it gives notice in writing to the undertaking on whose application the decision was made that it is removing the immunity as from the date specified in its notice.

(5) If the OFT has a reasonable suspicion that information—

(a) on which it based its decision, and

(b) which was provided to it by an undertaking engaging in the conduct,

was incomplete, false or misleading in a material particular, the date specified in a notice under subsection (4)(c) may be earlier than the date on which the notice is given.

Chapter III — Investigation and Enforcement

Investigations

Director’s power to investigate

25

(1) In any of the following cases, the CMA may conduct an investigation.

(2) The first case is where there are reasonable grounds for suspecting that there is an agreement which—

(a) may affect trade within the United Kingdom; and

(b) has as its object or effect the prevention, restriction or distortion of competition within the United Kingdom.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The third case is where there are reasonable grounds for suspecting that the Chapter II prohibition has been infringed.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The fifth case is where there are reasonable grounds for suspecting that, at some time in the past, there was an agreement which at that time—

(a) may have affected trade within the United Kingdom; and

(b) had as its object or effect the prevention, restriction or distortion of competition within the United Kingdom.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Subsection (2) does not permit an investigation to be conducted in relation to an agreement if the CMA —

(a) considers that the agreement is exempt from the Chapter I prohibition as a result of a block exemption or an assimilated exemption; and

(b) does not have reasonable grounds for suspecting that the circumstances may be such that it could exercise its power to cancel the exemption.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) Subsection (6) does not permit an investigation to be conducted in relation to any agreement if the CMA considers that, at the time in question, the agreement was exempt from the Chapter I prohibition as a result of a block exemption or an assimilated exemption.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) It is immaterial for the purposes of subsection (6) ... whether the agreement in question remains in existence.

Powers when conducting investigations

26

(1) For the purposes of an investigation under section 25, the CMA may require any person to produce to it a specified document, or to provide it with specified information, which it considers relates to any matter relevant to the investigation.

(2) The power conferred by subsection (1) is to be exercised by a notice in writing.

(3) A notice under subsection (2) must ...—

(a) indicate the subject matter and purpose of the investigation; and

(b) include information about the possible consequences of failing to comply with the notice.

(4) In subsection (1) “specified” means—

(a) specified, or described, in the notice; or

(b) falling within a category which is specified, or described, in the notice.

(5) The CMA may also specify in the notice—

(a) the time and place at which any document is to be produced or any information is to be provided;

(b) the manner and form in which it is to be produced or provided.

(6) The power under this section to require a person to produce a document includes power—

(a) if the document is produced—

(i) to take copies of it or extracts from it;

(ii) to require him, or any person who is a present or past officer of his, or is or was at any time employed by him, to provide an explanation of the document;

(b) if the document is not produced, to require him to state, to the best of his knowledge and belief, where it is.

Power to enter premises without a warrant

27

(1) Any officer of the CMA who is authorised in writing by the CMA to do so (“an investigating officer”) may enter any business premises in connection with an investigation under section 25.

(2) No investigating officer is to enter any premises in the exercise of his powers under this section unless he has given to the occupier of the premises a written notice which—

(a) gives at least two working days’ notice of the intended entry;

(b) indicates the subject matter and purpose of the investigation; and

(3) Subsection (2) does not apply—

(a) if the CMA has a reasonable suspicion that the premises are, or have been, occupied by—

(i) a party to an agreement which it is investigating section 25; or

(ii) an undertaking the conduct of which it is investigating under section 25; or

(b) if the investigating officer has taken all such steps as are reasonably practicable to give notice but has not been able to do so.

(4) In a case falling within subsection (3), the power of entry conferred by subsection (1) is to be exercised by the investigating officer on production of—

(a) evidence of his authorisation; and

(b) a document containing the information referred to in subsection (2)(b) and (c).

(5) An investigating officer entering any premises under this section may—

(a) take with him such equipment as appears to him to be necessary;

(b) require any person on the premises—

(i) to produce any document which he considers relates to any matter relevant to the investigation; and

(ii) if the document is produced, to provide an explanation of it;

(d) take copies of, or extracts from, any document which is produced;

(e) require any information which is stored in any electronic form and is accessible from the premises and which the investigating officer considers relates to any matter relevant to the investigation, to be produced in a form—

(i) in which it can be taken away, and

(ii) in which it is visible and legible or from which it can readily be produced in a visible and legible form.

(f) take any steps which appear to be necessary for the purpose of preserving or preventing interference with any document which he considers relates to any matter relevant to the investigation.

(6) In this section “business premises” means premises (or any part of premises) not used as a dwelling.

Power to enter premises under a warrant

28

(1) On an application made to it by the CMA, the court or the Tribunal may issue a warrant if it is satisfied that—

(a) there are reasonable grounds for suspecting that there are on or accessible from any business premises documents—

(i) the production of which has been required under section 26 or 27; and

(ii) which have not been produced as required;

(b) there are reasonable grounds for suspecting that—

(i) there are on or accessible from any business premises documents which the CMA has power under section 26 to require to be produced; and

(ii) if the documents were required to be produced, they would not be produced but would be concealed, removed, tampered with or destroyed; or

(c) an investigating officer has attempted to enter premises in the exercise of his powers under section 27 but has been unable to do so and that there are reasonable grounds for suspecting that there are on or accessible from the premises documents the production of which could have been required under that section.

(2) A warrant under this section shall authorise a named officer of the CMA , and any other of the “CMA's officers whom the CMA has authorised in writing to accompany the named officer—

(a) to enter the premises specified in the warrant, using such force as is reasonably necessary for the purpose;

(b) to search the premises and take copies of, or extracts from, any document appearing to be of a kind in respect of which the application under subsection (1) was granted (“the relevant kind”);

(i) such action appears to be necessary for preserving the documents or preventing interference with them; or

(ii) it is not reasonably practicable to take copies of the documents on the premises;

(d) to take any other steps which appear to be necessary for the purpose mentioned in paragraph (c)(i);

(e) to require any person to provide an explanation of any document appearing to be of the relevant kind or to state, to the best of his knowledge and belief, where it may be found;

(f) to require any information which is stored in any electronic form and is accessible from the premises ... to be produced in a form—

(i) in which it can be taken away, and

(ii) in which it is visible and legible or from which it can readily be produced in a visible and legible form;

(g) to operate any equipment found on the premises for the purposes of producing such information in such a form;

(h) to require any person on the premises to give the named officer any assistance the named officer may reasonably require (including for the purposes of paragraphs (f) and (g));

(i) to take copies of, or take possession of, anything produced in accordance with paragraph (f) or (g) which the named officer considers relates to any matter relevant to the investigation.

(3) If, in the case of a warrant under subsection (1)(b), the court or (as the case may be) the Tribunal is satisfied that it is reasonable to suspect that there are also on the premises other documents relating to the investigation concerned, the warrant shall also authorise action mentioned in subsection (2) to be taken in relation to any such document.

(3A) A warrant under this section may authorise persons specified in the warrant to accompany the named officer who is executing it.

(4) Any person entering premises by virtue of a warrant under this section may take with him such equipment as appears to him to be necessary.

(5) On leaving any premises which he has entered by virtue of a warrant under this section, the named officer must, if the premises are unoccupied or the occupier is temporarily absent, leave them as effectively secured as he found them.

(6) A warrant under this section continues in force until the end of the period of one month beginning with the day on which it is issued.

(7) Any document of which possession is taken under subsection (2)(c) may be retained for a period of three months.

(7A) An application for a warrant under this section must be made—

(a) in the case of an application to the court, in accordance with rules of court;

(b) in the case of an application to the Tribunal, in accordance with Tribunal rules.

(8) In this section “business premises” has the same meaning as in section 27.

Entry of premises under warrant: supplementary

29

(1) A warrant issued under section 28 or 28A must ...—

(a) indicate the subject matter and purpose of the investigation;

(b) include information about the possible consequences of failing to comply with the notice.

(2) The powers conferred by section 28 or 28A are to be exercised on production of a warrant issued under that section.

(3) If there is no one at the premises when the named officer proposes to execute such a warrant he must, before executing it—

(a) take such steps as are reasonable in all the circumstances to inform the occupier of the intended entry; and

(b) if the occupier is informed, afford him or his legal or other representative a reasonable opportunity to be present when the warrant is executed.

(4) If the named officer is unable to inform the occupier of the intended entry he must, when executing the warrant, leave a copy of it in a prominent place on the premises.

(5) In this section—

“named officer” means the officer named in the warrant; and

“occupier”, in relation to any premises, means a person whom the named officer reasonably believes is the occupier of those premises.

Privileged communications

30

(1) A person shall not be required, under any provision of this Part, to produce or disclose a privileged communication.

(1A) Nothing in section 28 or 28A authorises an officer to produce or take possession of, or make copies of or take extracts from, anything which, by virtue of subsection (1), a person could not be required to produce or disclose under this Part.

(2) “Privileged communication” means a communication—

(a) between a professional legal adviser and his client, or

(b) made in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings,

which in proceedings in the High Court would be protected from disclosure on grounds of legal professional privilege.

(3) In the application of this section to Scotland—

(a) references to the High Court are to be read as references to the Court of Session; and

(b) the reference to legal professional privilege is to be read as a reference to confidentiality of communications.

Decisions following an investigation

31

(1) If as a result of an investigation the CMA proposes to make a decision, the CMA must—

(a) give written notice to the person (or persons) likely to be affected by the proposed decision; and

(b) give that person (or those persons) an opportunity to make representations.

(2) For the purposes of this section and sections 31A and 31B “decision” means a decision of the CMA —

(a) that the Chapter I prohibition has been infringed; or

(b) that the Chapter II prohibition has been infringed;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enforcement : directions and interim measures

Directions in relation to agreements

32

(1) If the CMA has made a decision that an agreement infringes the Chapter I prohibition ... , it may give to such person or persons as it considers appropriate such directions as it considers appropriate to bring the infringement to an end.

(2) Subsection (1) applies whether the OFT’s decision is made on its own initiative or on an application made to it under this Part.

(3) A direction under this section may, in particular, include provision—

(a) requiring the parties to the agreement to modify the agreement; or

(b) requiring them to terminate the agreement.

(4) A direction under this section must be given in writing.

Directions in relation to conduct

33

(1) If the CMA has made a decision that conduct infringes the Chapter II prohibition ... , it may give to such person or persons as it considers appropriate such directions as it considers appropriate to bring the infringement to an end.

(2) Subsection (1) applies whether the OFT’s decision is made on its own initiative or on an application made to it under this Part.

(3) A direction under this section may, in particular, include provision—

(a) requiring the person concerned to modify the conduct in question; or

(b) requiring him to cease that conduct.

(4) A direction under this section must be given in writing.

Enforcement of directions

34

(1) If a person fails, without reasonable excuse, to comply with a direction under section 32 or 33, the CMA may apply to the court for an order—

(a) requiring the defaulter to make good his default within a time specified in the order; or

(b) if the direction related to anything to be done in the management or administration of an undertaking, requiring the undertaking or any of its officers to do it.

(2) An order of the court under subsection (1) may provide for all of the costs of, or incidental to, the application for the order to be borne by—

(a) the person in default; or

(b) any officer of an undertaking who is responsible for the default.

(3) In the application of subsection (2) to Scotland, the reference to “costs” is to be read as a reference to “expenses”.

(4) In deciding whether and, if so, how to proceed under this section, the CMA must have regard to the statement of policy which was most recently published by it under section 35C at the time of the failure to comply with the direction.

Interim measures

35

(1) Subject to subsection (8), this section applies if the CMA has begun an investigation under section 25 and not completed it (but only applies so long as the CMA has power under section 25 to conduct that investigation).

(2) If the CMA considers that it is necessary for it to act under this section as a matter of urgency for the purpose—

(a) of preventing significant damage to a particular person or category of person, or

(b) of protecting the public interest,

it may give such directions as it considers appropriate for that purpose.

(3) Before giving a direction under this section, the CMA must—

(a) give written notice to the person (or persons) to whom it proposes to give the direction; and

(b) give that person (or each of them) an opportunity to make representations.

(4) A notice under subsection (3) must indicate the nature of the direction which the CMA is proposing to give and its reasons for wishing to give it.

(5) A direction given under this section may if the circumstances permit be replaced by—

(a) a direction under section 32 or (as appropriate) section 33, or

(b) commitments accepted under section 31A,

but, subject to that, has effect while this section applies.

(6) In the cases mentioned in section 25(2) and (6), sections 32(3) and 34 also apply to directions given under this section.

(7) In the cases mentioned in section 25(4), sections 33(3) and 34 also apply to directions given under this section.

(8) In the case of an investigation conducted by virtue of section 25(2) or (6), this section does not apply if a person has produced evidence to the CMA in connection with the investigation that satisfies it on the balance of probabilities that, in the event of it reaching the basic infringement conclusion, it would also reach the conclusion that the suspected agreement is exempt from the Chapter I prohibition as a result of section 9(1); and in this subsection “the basic infringement conclusion” is the conclusion that there is an agreement which—

(a) may affect trade within the United Kingdom, and

(b) has as its object or effect the prevention, restriction or distortion of competition within the United Kingdom.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalty for infringing Chapter I or Chapter II prohibition

36

(1) On making a decision that an agreement has infringed the Chapter I prohibition ..., the CMA may require an undertaking which is a party to the agreement to pay the CMA a penalty in respect of the infringement.

(2) On making a decision that conduct has infringed the Chapter II prohibition ..., the CMA may require the undertaking concerned to pay the CMA a penalty in respect of the infringement.

(3) The CMA may impose a penalty on an undertaking under subsection (1) or (2) only if the CMA is satisfied that the infringement has been committed intentionally or negligently by the undertaking.

(4) Subsection (1) is subject to section 39 and does not apply in relation to a decision that an agreement has infringed the Chapter I prohibition if the CMA is satisfied that the undertaking acted on the reasonable assumption that that section gave it immunity in respect of the agreement.

(5) Subsection (2) is subject to section 40 and does not apply in relation to a decision that conduct has infringed the Chapter II prohibition if the CMA is satisfied that the undertaking acted on the reasonable assumption that that section gave it immunity in respect of the conduct.

(6) Notice of a penalty under this section must—

(a) be in writing; and

(b) specify the date before which the penalty is required to be paid.

(7) The date specified must not be earlier than the end of the period within which an appeal against the notice may be brought under section 46.

(7A) In fixing a penalty under this section the CMA must have regard to—

(a) the seriousness of the infringement concerned, and

(b) the desirability of deterring both the undertaking on whom the penalty is imposed and others from—

(i) entering into agreements which infringe the Chapter 1 prohibition ..., or

(ii) engaging in conduct which infringes the Chapter 2 prohibition ....

(8) No penalty fixed by the CMA under this section may exceed 10% of the turnover of the undertaking (determined in accordance with such provisions as may be specified in an order made by the Secretary of State).

(9) Any sums received by the CMA under this section are to be paid into the Consolidated Fund.

Recovery of penalties

37

(1) If the specified date in a penalty notice has passed and—

(a) the period during which an appeal against the imposition, or amount, of the penalty may be made has expired without an appeal having been made, or

(b) such an appeal has been made and determined,

the CMA may recover from the undertaking, as a civil debt due to the CMA , any amount payable under the penalty notice which remains outstanding.

(2) In this section—

“penalty notice” means a notice given under section 36; and

“specified date” means the date specified in the penalty notice.

The appropriate level of a penalty

38

(1) The CMA must prepare and publish guidance as to the appropriate amount of any penalty under this Part in respect of an infringement of the Chapter 1 prohibition or the Chapter 2 prohibition.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The CMA may at any time alter the guidance.

(3) If the guidance is altered, the CMA must publish it as altered.

(4) No guidance is to be published under this section without the approval of the Secretary of State.

(5) The CMA may, after consulting the Secretary of State, choose how it publishes its guidance.

(6) If the CMA is preparing or altering guidance under this section it must consult such persons as it considers appropriate.

(7) If the proposed guidance or alteration relates to a matter in respect of which a regulator exercises concurrent jurisdiction, those consulted must include that regulator.

(8) When setting the amount of a penalty under this Part in respect of an infringement of a kind mentioned in subsection (1) , the CMA and the Tribunal must have regard to the guidance for the time being in force under this section.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Limited immunity for small agreements

39

(1) In this section “small agreement” means an agreement—

(a) which falls within a category prescribed for the purposes of this section; but

(b) is not a price fixing agreement.

(2) The criteria by reference to which a category of agreement is prescribed may, in particular, include—

(a) the combined turnover of the parties to the agreement (determined in accordance with prescribed provisions);

(b) the share of the market affected by the agreement (determined in that way).

(3) A party to a small agreement is immune from the effect of section 36(1) so far as that provision relates to decisions about infringement of the Chapter I prohibition; but the CMA may withdraw that immunity under subsection (4).

(4) If the CMA has investigated a small agreement, it may make a decision withdrawing the immunity given by subsection (3) if, as a result of its investigation, it considers that the agreement is likely to infringe the Chapter I prohibition.

(5) The CMA must give each of the parties in respect of which immunity is withdrawn written notice of its decision to withdraw the immunity.

(6) A decision under subsection (4) takes effect on such date (“the withdrawal date”) as may be specified in the decision.

(7) The withdrawal date must be a date after the date on which the decision is made.

(8) In determining the withdrawal date, the CMA must have regard to the amount of time which the parties are likely to require in order to secure that there is no further infringement of the Chapter I prohibition with respect to the agreement.

(9) In subsection (1) “price fixing agreement” means an agreement which has as its object or effect, or one of its objects or effects, restricting the freedom of a party to the agreement to determine the price to be charged (otherwise than as between that party and another party to the agreement) for the product, service or other matter to which the agreement relates.

Limited immunity in relation to the Chapter II prohibition

40

(1) In this section “conduct of minor significance” means conduct which falls within a category prescribed for the purposes of this section.

(2) The criteria by reference to which a category is prescribed may, in particular, include—

(a) the turnover of the person whose conduct it is (determined in accordance with prescribed provisions);

(b) the share of the market affected by the conduct (determined in that way).

(3) A person is immune from the effect of section 36(2), so far as that provision relates to decisions about infringement of the Chapter II prohibition, if its conduct is conduct of minor significance; but the CMA may withdraw that immunity under subsection (4).

(4) If the CMA has investigated conduct of minor significance, it may make a decision withdrawing the immunity given by subsection (3) if, as a result of its investigation, it considers that the conduct is likely to infringe the Chapter II prohibition.

(5) The CMA must give the person, or persons, whose immunity has been withdrawn written notice of its decision to withdraw the immunity.

(6) A decision under subsection (4) takes effect on such date (“the withdrawal date”) as may be specified in the decision.

(7) The withdrawal date must be a date after the date on which the decision is made.

(8) In determining the withdrawal date, the CMA must have regard to the amount of time which the person or persons affected are likely to require in order to secure that there is no further infringement of the Chapter II prohibition.

Agreements notified to the Commission

41

(1) This section applies if a party to an agreement which may infringe the Chapter I prohibition has notified the agreement to the Commission for a decision as to whether an exemption will be granted under Article 85 with respect to the agreement.

(2) A penalty may not be required to be paid under this Part in respect of any infringement of the Chapter I prohibition after notification but before the Commission determines the matter.

(3) If the Commission withdraws the benefit of provisional immunity from penalties with respect to the agreement, subsection (2) ceases to apply as from the date on which that benefit is withdrawn.

(4) The fact that an agreement has been notified to the Commission does not prevent the OFT from investigating it under this Part.

(5) In this section “provisional immunity from penalties” has such meaning as may be prescribed.

Offences

42

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) A person is guilty of an offence if he intentionally obstructs an officer acting in the exercise of his powers under section 27.

(6) A person guilty of an offence under subsection ... (5) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(7) A person who intentionally obstructs an officer in the exercise of his powers under a warrant issued under section 28 or 28A is guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

(8) A person is not guilty of an offence under subsection (5) or (7) by reason of any act or omission in relation to which the CMA has proceeded against the person under section 40ZE(1).

Destroying or falsifying documents

43

(1) A person is guilty of an offence if, having been required to produce a document under section 26, 27, 28 or 28A—

(a) he intentionally or recklessly destroys or otherwise disposes of it, falsifies it or conceals it, or

(b) he causes or permits its destruction, disposal, falsification or concealment.

(1A) A person is not guilty of an offence under subsection (1) by reason of any act or omission in relation to which the CMA has proceeded against the person under section 40ZE(1).

(2) A person guilty of an offence under subsection (1) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

False or misleading information

44

(1) If information is provided by a person to the CMA in connection with any function of the CMA under this Part, that person is guilty of an offence if—

(a) the information is false or misleading in a material particular, and

(b) he knows that it is or is reckless as to whether it is.

(2) A person who—

(a) provides any information to another person, knowing the information to be false or misleading in a material particular, or

(b) recklessly provides any information to another person which is false or misleading in a material particular,

knowing that the information is to be used for the purpose of providing information to the CMA in connection with any of its functions under this Part, is guilty of an offence.

(2A) A person is not guilty of an offence under this section by reason of any act or omission in relation to which the CMA has proceeded against the person under section 40ZE(1).

(3) A person guilty of an offence under this section is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

Chapter IV — Appeals before the Tribunal and proceedings and settlements relating to infringements of competition law

...

The Competition Commission

45

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals before the Tribunal

Appealable decisions

46

(1) Any party to an agreement in respect of which the CMA has made a decision may appeal to the Tribunal against, or with respect to, the decision.

(2) Any person in respect of whose conduct the CMA has made a decision may appeal to the Tribunal against, or with respect to, the decision.

(3) In this section “decision” means a decision of the CMA —

(a) as to whether the Chapter I prohibition has been infringed,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) cancelling a block or assimilated exemption,

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) not releasing commitments pursuant to a request made under section 31A(4)(b)(i),

(h) releasing commitments under section 31A(4)(b)(ii),

(ha) to make directions under section 35,

(hb) not to make directions under section 35,

(i) as to the imposition of any penalty under section 36 or as to the amount of any such penalty,

and includes a direction under section 32 or 33 and such other decisions under this Part as may be prescribed.

(4) Except in the case of an appeal against the imposition, or the amount, of a penalty, the making of an appeal under this section does not suspend the effect of the decision to which the appeal relates.

(5) Part I of Schedule 8 makes further provision about appeals.

Third party appeals

47

(1) A person who does not fall within section 46(1) or (2) may appeal to the Tribunal with respect to—

(a) a decision falling within paragraph (a), (c) or (e) of section 46(3);

(b) a decision falling within paragraph (g) of section 46(3);

(c) a decision of the CMA to accept or release commitments under section 31A, or to accept a variation of such commitments other than a variation which is not material in any respect;

(d) a decision of the CMA to make directions under section 35;

(e) a decision of the CMA not to make directions under section 35; or

(f) such other decision of the CMA under this Part as may be prescribed.

(2) A person may make an appeal under subsection (1) only if the Tribunal considers that he has a sufficient interest in the decision with respect to which the appeal is made, or that he represents persons who have such an interest.

(3) The making of an appeal under this section does not suspend the effect of the decision to which the appeal relates.

Appeal tribunals

48

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals on point of law etc

49

(1) An appeal lies to the appropriate court—

(a) from a decision of the Tribunal as to the amount of a penalty under section 36; and

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1A) An appeal lies to the appropriate court on a point of law arising from a decision of the Tribunal in proceedings under section 47A or in collective proceedings—

(a) as to the award of damages or other sum (other than a decision on costs or expenses), ...

(b) as to the grant of an injunction , or

(1B) An appeal lies to the appropriate court from a decision of the Tribunal in proceedings under section 47A or in collective proceedings as to the amount of an award of damages or other sum (other than the amount of costs or expenses).

(1C) An appeal under subsection (1A) arising from a decision in respect of a stand-alone claim may include consideration of a point of law arising from a finding of the Tribunal as to an infringement of a prohibition listed in section 47A(2).

(1D) In subsection (1C) “a stand-alone claim” is a claim—

(a) in respect of an alleged infringement of a prohibition listed in section 47A(2), and

(b) made in proceedings under section 47A or included in collective proceedings.

(2) An appeal under this section—

(a) except as provided by subsection (2A), may be brought by a party to the proceedings before the Tribunal or by a person who has a sufficient interest in the matter; and

(b) requires the permission of the Tribunal or the appropriate court.

(2A) An appeal from a decision of the Tribunal in respect of a claim included in collective proceedings may be brought only by the representative in those proceedings or by a defendant to that claim.

(3) In this section “the appropriate court” means the Court of Appeal or, in the case of an appeal from Tribunal proceedings in Scotland, the Court of Session.

Chapter V — Miscellaneous

Vertical agreements and land agreements

50

(1) The Secretary of State may by order provide for any provision of this Part to apply in relation to—

(a) vertical agreements, or

(b) land agreements,

with such modifications as may be prescribed.

(2) An order may, in particular, provide for exclusions or exemptions, or otherwise provide for prescribed provisions not to apply, in relation to—

(a) vertical agreements, or land agreements, in general; or

(b) vertical agreements, or land agreements, of any prescribed description.

(3) An order may empower the CMA to give directions to the effect that in prescribed circumstances an exclusion, exemption or modification is not to apply (or is to apply in a particular way) in relation to an individual agreement.

(4) Subsections (2) and (3) are not to be read as limiting the powers conferred by section 71.

(5) In this section—

“land agreement” and “vertical agreement” have such meaning as may be prescribed; and

“prescribed” means prescribed by an order.

CMA's rules, guidance and fees

Rules

51

(1) The CMA may make such rules about procedural and other matters in connection with the carrying into effect of the provisions of this Part as it considers appropriate.

(2) Schedule 9 makes further provision about rules made under this section but is not to be taken as restricting the CMA powers under this section.

(3) If the CMA is preparing rules under this section it must consult such persons as he considers appropriate.

(4) If the proposed rules relate to a matter in respect of which a regulator exercises concurrent jurisdiction, those consulted must include that regulator.

(5) No rule made by the CMA is to come into operation until it has been approved by an order made by the Secretary of State.

(6) The Secretary of State may approve any rule made by the CMA —

(a) in the form in which it is submitted; or

(b) subject to such modifications as he considers appropriate.

(7) If the Secretary of State proposes to approve a rule subject to modifications he must inform the CMA of the proposed modifications and take into account any comments made by the CMA .

(8) Subsections (5) to (7) apply also to any alteration of the rules made by the CMA .

(9) The Secretary of State may, after consulting the CMA , by order vary or revoke any rules made under this section.

(10) If the Secretary of State considers that rules should be made under this section with respect to a particular matter he may direct the CMA to exercise its powers under this section and make rules about that matter.

Advice and information

52

(1) The CMA must prepare and publish general advice and information about—

(a) the application of the Chapter I prohibition and the Chapter II prohibition, and

(b) the enforcement of those prohibitions.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The CMA may at any time publish revised, or new, advice or information.

(3) Advice and information published under this section must be prepared with a view to—

(a) explaining provisions of this Part to persons who are likely to be affected by them; and

(b) indicating how the CMA expects such provisions to operate.

(4) Advice (or information) published by virtue of subsection (3)(b) may include advice (or information) about the factors which the CMA may take into account in considering whether, and if so how, to exercise a power conferred on it by Chapter I, II or III.

(5) Any advice or information published by the CMA under this section is to be published in such form and in such manner as it considers appropriate.

(6) If the CMA is preparing any advice or information under this section it must consult such persons as he considers appropriate.

(7) If the proposed advice or information relates to a matter in respect of which a regulator exercises concurrent jurisdiction, those consulted must include that regulator.

(8) In preparing any advice or information under this section about a matter in respect of which he may exercise functions under this Part, a regulator must consult—

(a) the CMA ;

(b) the other regulators; and

Fees

53

(1) The OFT may charge fees, of specified amounts, in connection with the exercise by it of specified functions under this Part.

(2) Rules may, in particular, provide—

(a) for the amount of any fee to be calculated by reference to matters which may include—

(i) the turnover of any party to an agreement (determined in such manner as may be specified);

(ii) the turnover of a person whose conduct the OFT is to consider (determined in that way);

(b) for different amounts to be specified in connection with different functions;

(d) that an application or notice is not to be regarded as duly made or given unless the appropriate fee is paid.

(3) In this section—

(a) “rules” means rules made by the OFT under section 51; and

(b) “specified” means specified in rules.

Regulators

54

(1) In this Part “regulator” means —

(a) the Office of Communications;

(b) the Gas and Electricity Markets Authority;

(d) the Water Services Regulation Authority;

(e) the Office of Rail and Road;

(f) the Northern Ireland Authority for Utility Regulation;

(g) the Civil Aviation Authority ; and

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.

(j) the Financial Conduct Authority.

(2) Parts II and III of Schedule 10 provide for functions of the CMA under this Part to be exercisable concurrently by regulators.

(3) Parts IV and V of Schedule 10 make minor and consequential amendments in connection with the regulators’ competition functions.

(4) The Secretary of State may make regulations for the purpose of co-ordinating the performance of functions under this Part (“Part I functions”) which are exercisable concurrently by two or more competent persons as a result of any enactment (including any subordinate legislation) whenever passed or made.

(5) The regulations may, in particular, make provision—

(a) as to the procedure to be followed by competent persons when determining who is to exercise Part I functions in a particular case;

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