PART 2U.K.Amendment of the Competition Act 1998
2. The Competition Act 1998 is amended as follows.
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3.—(1) Section 10 is amended as follows.
(2) In the heading, for “Parallel exemptions” substitute “ Retained exemptions ”.
(3) Before subsection (1) insert—
“(A1) An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in a retained block exemption regulation.”.
(4) Omit subsections (1) and (2).
(5) In subsection (3), for “parallel exemption” substitute “ retained exemption ”.
(6) In subsection (4)—
(a)for “parallel exemption” substitute “ retained exemption ”;
(b)omit paragraph (a) (together with the final “and”);
(c)in paragraph (b), for “exemption from the Community prohibition” substitute “ retained block exemption regulation ”.
(7) In subsection (5)—
(a)in paragraph (a)—
(i)for “parallel exemption” substitute “ retained exemption ”;
(ii)after “effect” insert “ in respect of an agreement ”;
(b)in paragraph (d), after “exemption” insert “ in respect of an agreement ”.
(8) Omit subsections (9) to (11).
(9) After subsection (11), insert—
“(12) In this Part, “retained 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.”.
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4. After section 10 insert—
“10A Power to vary etc retained block exemption regulations
(1) The Secretary of State may by regulations vary or revoke a retained block exemption regulation.
(2) In exercising the power under subsection (1), the Secretary of State must have regard to the conditions specified in section 9(1) for exemption from the Chapter 1 prohibition.
(3) If, in the opinion of the CMA, it is appropriate to vary or revoke a retained block exemption regulation, the CMA may make a recommendation to that effect to the Secretary of State.
(4) Before making a recommendation under subsection (3), 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.
(5) Before exercising the power to vary or revoke a retained block exemption regulation (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.”.
5. Omit section 11 .
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6.—(1) Section 25 is amended as follows.
(2) Omit subsections (3), (5) and (7).
(3) In subsection (8)(a), for “parallel exemption” substitute “ retained exemption ”.
(4) Omit subsection (9).
(5) In subsection (10), for “parallel exemption” substitute “ retained exemption ”.
(6) Omit subsection (11).
(7) In subsection (12), omit “or (7)”.
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7. In section 25A(1)(b) , for “subsections (2) to (7)” substitute “ subsections (2), (4) and (6) ”.
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[7A. In section 30A(1), for “sections 26 and 27 to 28A” substitute “sections 26, 27 to 28A and 40ZD”.]U.K.
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8. In section 31(2) —
(a)at the end of paragraph (a), insert “ or ”;
(b)omit paragraphs (c) and (d).
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9. In section 32(1) , omit “or that it infringes the prohibition in Article 101(1)”.
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10. In section 33(1) , omit “or that it infringes the prohibition in Article 102”.
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11. In section 35 —
(a)in subsection (1), for “subsections (8) and (9)” substitute “ subsection (8) ”;
(b)in subsection (6), for “section 25(2), (3), (6) and (7)” substitute “ section 25(2) and (6) ”;
(c)in subsection (7), for “section 25(4) and (5)” substitute “ section 25(4) ”;
(d)omit subsection (9).
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12. In section 36 —
(a)in subsection (1), omit “or that it has infringed the prohibition in Article 101(1)”;
(b)in subsection (2), omit “or that it has infringed the prohibition in Article 102”;
(c)in subsection (7A)(b)—
(i)in sub-paragraph (i), omit “or the prohibition in Article 81(1)”;
(ii)in sub-paragraph (ii), omit “or the prohibition in Article 82”.
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13. In section 38 —
(a)in subsection (1), for the words from “the Chapter 1 prohibition” to the end substitute “ the Chapter 1 prohibition or the Chapter 2 prohibition. ”;
(b)omit subsection (1A);
(c)omit subsections (9) and (10).
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[13A. After section 40, insert—U.K.
“Transferred EU anti-trust commitments and transferred EU anti-trust directionsU.K.
40ZA. Interpretation
(1) In this section and in sections 40ZB and 40ZD “transferred EU anti-trust commitments” means EU anti-trust commitments—
(a)which are the subject of an Article 95(2) commitments transfer decision (and, where those commitments are modified by, or as contemplated by, that decision, or by a later Article 95(2) commitments transfer decision, means those commitments as so modified), and
(b)which have not been wholly waived or substituted by the European Commission.
(2) In this section—
“Article 95(2) commitments transfer decision” means an instrument issued by the European Commission in accordance with Article 95(2) of the EU withdrawal agreement transferring responsibility for the monitoring and enforcement of EU anti-trust commitments to the CMA;
“EU anti-trust commitments” means commitments contained, pursuant to Article 9(1) of Regulation 1/2003, in a decision adopted by the European Commission under that Regulation.
(3) In this section and in sections 40ZC and 40ZD a “transferred EU anti-trust direction” means an EU anti-trust direction—
(a)which is the subject of an Article 95(2) direction transfer decision (and, where that direction is modified by, or as contemplated by, that decision, or by a later Article 95(2) direction transfer decision, means that direction as so modified), and
(b)which has not been wholly revoked by the European Commission.
(4) In this section—
“Article 95(2) direction transfer decision” means an instrument issued by the European Commission in accordance with Article 95(2) of the EU withdrawal agreement transferring responsibility for the monitoring and enforcement of an EU anti-trust direction to the CMA;
“EU anti-trust direction” means a direction given pursuant to Article 7(1) of Regulation 1/2003 in a decision adopted by the European Commission under that Regulation;
“Regulation 1/2003” means Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty.
(5) So far as the context permits or requires, transferred EU anti-trust commitments and transferred EU anti-trust directions are to be treated for the purposes of this section and sections 40ZB to 40ZD as if—
(a)any reference to the area of the European Union or of the European Economic Area included the United Kingdom;
(b)any reference to the internal market included the United Kingdom;
(c)any reference to a member State included the United Kingdom;
(d)any reference to a party to the EEA agreement included the United Kingdom.
(6) Subsection (5) is subject to any different provision made by the Article 95(2) commitments transfer decision or Article 95(2) direction transfer decision in question.
40ZB. Transferred EU anti-trust commitments
(1) The CMA has the function of monitoring compliance with transferred EU anti-trust commitments.
(2) If a person who is bound by transferred EU anti-trust commitments fails, without reasonable excuse, to adhere to those commitments, the CMA may apply to the court for an order—
(a)requiring the defaulter to make good the default within a time specified in the order; or
(b)if any of the transferred EU anti-trust commitments relate to anything to be done in the management or administration of an undertaking, requiring the undertaking or any of its officers to do it.
(3) An order of the court under subsection (2) 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.
(4) In the application of subsection (3) to Scotland, the reference to “costs” is to be read as a reference to “expenses”.
(5) In this section, “transferred EU anti-trust commitments” has the meaning given by section 40ZA(1).
40ZC. Transferred EU anti-trust directions
(1) The CMA has the function of monitoring compliance with transferred EU anti-trust directions.
(2) If a person fails, without reasonable excuse, to comply with a transferred EU anti-trust direction, the CMA may apply to the court for an order—
(a)requiring the defaulter to make good the default within a time specified in the order; or
(b)if the transferred EU anti-trust 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.
(3) An order of the court under subsection (2) 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.
(4) In the application of subsection (3) to Scotland, the reference to “costs” is to be read as a reference to “expenses”.
(5) In this section, “transferred EU anti-trust direction” has the meaning given by section 40ZA(3).
40ZD. Information relating to transferred EU anti-trust commitments and transferred EU anti-trust directions
(1) The CMA may require any person to produce to the CMA a specified document, or to provide the CMA with specified information, for the purposes of assisting the CMA—
(a)to monitor compliance with transferred EU anti-trust commitments, or
(b)to decide whether to make an application under section 40ZB(2) in respect of those transferred EU anti-trust commitments.
(2) The CMA may require any person to produce to the CMA a specified document, or to provide the CMA with specified information, for the purposes of assisting the CMA—
(a)to monitor compliance with a transferred EU anti-trust direction, or
(b)to decide whether to make an application under section 40ZC(2) in respect of a transferred EU anti-trust direction.
(3) The powers conferred by subsections (1) and (2) are to be exercised by a notice in writing which indicates the subject matter and purpose of the demand (including identifying the transferred EU anti-trust commitments or transferred EU anti-trust direction in question).
(4) 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.
(5) 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 that person, or any person who is a present or past officer of, or is or was at any time employed by, that person, to provide an explanation of the document;
(b)if the document is not produced, to require that person to state, to the best of their knowledge and belief, where it is.
(6) In this section—
“specified” means—
(a)
specified, or described, in the notice under subsection (3), or
(b)
falling within a category which is specified, or described, in that notice;
“transferred EU anti-trust commitments” has the meaning given by section 40ZA(1);
“transferred EU anti-trust direction” has the meaning given by section 40ZA(3).”.
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13B. In section 40A(1), for “28 or 28A” substitute “28, 28A or 40ZD”.]U.K.
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14. In section 46(3) —
(a)omit paragraphs (b) and (d);
(b)in paragraph (e), for “parallel exemption” substitute “ retained exemption ”;
(c)omit paragraph (f).
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15. In section 47(1)(a) , for “paragraphs (a) to (f)” substitute “ paragraph (a), (c) or (e) ”.
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16.—(1) Section 47A is amended as follows.
(2) In subsection (2)—
(a)at the end of paragraph (a), insert “ or ”;
(b)omit paragraphs (c) and (d).
(3) For subsection (6) substitute—
“(6) In this Part (except in section 49C) “infringement decision” means—
(a)a decision of the CMA that the Chapter I prohibition or the Chapter II prohibition has been infringed, or
(b)a decision of the Tribunal on an appeal from the decision of the CMA that the Chapter I prohibition or the Chapter II prohibition has been infringed.”.
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17. In section 49C(11) , for the definition of “infringement decision” (but not the final “and”) substitute—
““infringement decision” means a decision of the CMA that the Chapter I prohibition or the Chapter II prohibition has been infringed,”.
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18. In section 52, omit subsection (1A) .
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19.—(1) Section 58(2) is amended as follows.
(2) In the definition of “Part I proceedings”—
(a)at the end of paragraph (za), insert “ or ”;
(b)omit paragraph (b) and the “or” before it.
(3) In the definition of “relevant party”—
(a)in paragraph (a), omit “or the prohibition in Article 101(1)”;
(b)in paragraph (b), omit “or the prohibition in Article 102”.
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20. In section 58A , omit subsection (4).
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21.—(1) Section 59(1) is amended as follows.
(2) Omit the definitions of—
(a)“Article 101(1)”;
(b)“Article 101(3)”;
(c)“Article 102”;
(d)“the Commission”;
(e)“the Council”;
(f)“the EEA Agreement”;
(g)“the European Court”;
(h)“the EC Competition Regulation”;
(i)“parallel exemption”;
(j)“section 11 exemption” (including the final “and”);
(k)“the Treaty”.
(3) In the definition of “the court”, for “60” substitute “ 60A ”.
(4) At the appropriate places, insert—
““retained block exemption regulation” has the meaning given in section 10(12);”;
““retained exemption” has the meaning given in section 10(3);”.
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22. Omit section 60 ).
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23. After section 60 insert—
“60A Certain principles etc to be considered or applied from [IP completion day]
(1) This section applies when one of the following persons determines a question arising under this Part in relation to competition within the United Kingdom—
(a)a court or tribunal;
(b)the CMA;
(c)a person acting on behalf of the CMA in connection with a matter arising under this Part.
(2) The person must act (so far as is compatible with the provisions of this Part) with a view to securing that there is no inconsistency between—
(a)the principles that it applies, and the decision that it reaches, in determining the question, and
(b)the principles laid down by the Treaty on the Functioning of the European Union and the European Court before [IP completion day], and any relevant decision made by that Court before [IP completion day], so far as applicable immediately before [IP completion day] in determining any corresponding question arising in EU law,
subject to subsections (4) to (7).
(3) The person must, in addition, have regard to any relevant decision or statement of the European Commission made before [IP completion day] and not withdrawn.
(4) Subsection (2) does not require the person to secure that there is no inconsistency with a principle or decision referred to in subsection (2)(b) so far as the principle or decision is excluded from the law of England and Wales, Scotland and Northern Ireland on or after [IP completion day].
(5) For the purposes of subsection (4), a principle or decision is to be treated as not excluded from the law of England and Wales, Scotland and Northern Ireland if it is excluded only by virtue of an exclusion or revocation in the Competition (Amendment etc.) (EU Exit) Regulations 2019.
(6) Subsection (2) does not apply so far as the person is bound by a principle laid down by, or a decision of, a court or tribunal in England and Wales, Scotland or Northern Ireland that requires the person to act otherwise.
(7) Subsection (2) does not apply if the person thinks that it is appropriate to act otherwise in the light of one or more of the following—
(a)differences between the provisions of this Part under consideration and the corresponding provisions of EU law as those provisions of EU law had effect immediately before [IP completion day];
(b)differences between markets in the United Kingdom and markets in the European Union;
(c)developments in forms of economic activity since the time when the principle or decision referred to in subsection (2)(b) was laid down or made;
(d)generally accepted principles of competition analysis or the generally accepted application of such principles;
(e)a principle laid down, or decision made, by the European Court on or after [IP completion day];
(f)the particular circumstances under consideration.
(8) In subsection (2)(b), the reference to principles laid down before [IP completion day] is a reference to such principles as they have effect in EU law immediately before [IP completion day], disregarding the effect of principles laid down, and decisions made, by the European Court on or after [IP completion day].
(9) In this section, references to a decision of the European Court or the European Commission include a decision as to—
(a)the interpretation of a provision of EU law;
(b)the civil liability of an undertaking for harm caused by its infringement of EU law.”.
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24. Omit Parts 2 and 2A .
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25. In section 72(1) , omit “, 65 or 65L to 65N”.
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26.—(1) Section 73 is amended as follows.
(2) In subsection (4)—
(a)omit “or 65D”;
(b)in paragraph (a), omit “or (as the case may be) section 65F”;
(c)in paragraph (b), for “none of sections 28, 28A, 65G and 65H applies” substitute “ sections 28 and 28A do not apply ”.
(3) Omit subsection (6).
(4) In subsection (6A), for “subsections (4) and (6)” substitute “ subsection (4) ”;
(5) In subsection (8)—
(a)in paragraph (a), omit “or 65F”;
(b)in paragraph (b), for “section 28, 28A, 62, 62A, 63, 65G or 65H” substitute “ section 28 or 28A ”.
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27. Omit section 75A .
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28. In Schedule 1, omit Part 2 .
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29.—(1) Schedule 3 is amended as follows.
(2) Omit paragraph 3 (and the italic heading before it).
[(3) In paragraph 5(3)—
(a)for paragraph (b) substitute—
“(b)imposed by or under the EU withdrawal agreement or the EEA EFTA separation agreement and having legal effect in the United Kingdom without further enactment (and in this paragraph, “EEA EFTA separation agreement” has the same meaning as in the European Union (Withdrawal Agreement) Act 2020 (see section 39(1) of that Act)).”;
(b)omit paragraph (c).]
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30.—(1) Schedule 8A is amended as follows.
(2) In paragraph 2(1)—
(a)at the end of paragraph (a), insert “ and ”;
(b)omit paragraphs (c) and (d).
(3) In paragraph 3—
(a)in sub-paragraph (1)—
(i)at the end of paragraph (a), insert “ and ”;
(ii)omit paragraphs (c) and (d);
(b)omit sub-paragraph (2);
(c)in sub-paragraph (4)—
(i)for “Subsections (3) and (4) of section 58A apply” substitute “ Section 58A(3) applies ”;
(ii)for “the CMA, a regulator or the Commission” substitute “ the CMA or a regulator ”;
(d)omit sub-paragraphs (5) and (6).
(4) In paragraph 12—
(a)in sub-paragraph (5), at the end insert “ (“the SME Annex”), subject to sub-paragraph (6) ”;
(b)after sub-paragraph (5), insert—
“(6) For the purposes of this paragraph, the SME Annex has effect as if—
(a)in Article 2(1), for “EUR 50 million and/or an annual balance sheet total not exceeding EUR 43 million” there were substituted “ £44,000,000 and/or an annual balance sheet total not exceeding £38,000,000 ”;
(b)in Article 2(2), for “EUR 10 million” there were substituted “ £8,800,000 ”;
(c)in Article 2(3), for “EUR 2 million” there were substituted “ £1,750,000 ”;
(d)in Article 3(2)(a), for “EUR 1 250 000” there were substituted “ £1,100,000 ”;
(e)in Article 3(2)(d), for “EUR 10 million” there were substituted “ £8,800,000 ”;
(f)in Article 3(5), for “by national or Community rules” there were substituted “ under the law of the United Kingdom (or any part of it) ”;
(g)in Article 5(b), for “national law” there were substituted “ the law of the United Kingdom (or any part of it) ”.”.
(5) In paragraph 14(1)(a), omit “or the prohibition in Article 101(1)”.
(6) Omit paragraph 35 (and the italic heading before it).
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31.—(1) Schedule 9 is amended as follows.
(2) In paragraph 5(1)(d) —
(a)at the end of sub-paragraph (i), insert “ or ”;
(b)omit sub-paragraph (ii);
(c)omit sub-paragraph (iv) and the “or” before it.
(3) In paragraph 5(2) —
(a)at the end of paragraph (a), insert “ or ”;
(b)omit paragraph (b);
(c)omit paragraph (d) and the “or” before it.
(4) In paragraph 8 , omit sub-paragraph (b);
(5) For the italic heading before paragraph 9 substitute “ Retained exemptions ”.
(6) In paragraph 9(a)(i), for “parallel exemption” substitute “ retained exemption ”.
(7) Omit paragraph 10 and the italic heading before it.
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