Restrictive Trade Practices Act 1976 (repealed 1.3.2000)

19 Presumption under Part III as to the public interest. U.K.

(1) For the purposes of any proceedings before the Court under Part I of this Act, a restriction accepted or information provision made in pursuance of an agreement to which this Act applies by virtue of this Part shall be deemed to be contrary to the public interest unless the Court is satisfied of any one or more of the following circumstances—

(a) that the restriction or information provision is reasonably necessary having regard to the character of the services to which it applies, to protect the public against injury (whether to persons or to premises) in connection with the use of those services or in connection with the consumption, installation or use of goods in relation to which those services are supplied;

(b) that the removal of the restriction or information provision would deny to the public as users of any services, or as [F1 vendors], purchasers, consumers or users of any goods [F2 or other property] in relation to which any services are supplied, other specific and substantial benefits or advantages enjoyed or likely to be enjoyed by them as such, whether by virtue of the restriction or information provision itself or of any arrangements or operations resulting therefrom;

(c) that the restriction or information provision is reasonably necessary to counteract measures taken by any one person not party to the agreement with a view to preventing or restricting competition in or in relation to the trade or business in which the person party thereto are engaged;

(d) that the restriction or information provision is reasonably necessary to enable the persons party to the agreement to negotiate fair terms for the suppply of services to, or for obtaining services from, any one person not party thereto who controls a preponderant part of the trade or business of supplying such services, or for the supply of services to any person not party to the agreement and not carrying on such a trade or business who, either alone or in combination with any other such person, controls a preponderant part of the market for such services;

(e) that, having regard to the conditions actually obtaining or reasonably foreseen at the time of the application, the removal of the restriction or information provision would be likely to have a serious and persistent adverse effect on the general level of unemployment in an area, or in areas taken together, in which a substantial proportion of the trade or industry to which the agreement relates is situated;

(f) that, having regard to the conditions actually obtaining or reasonably foreseen at the time of the application, the removal of the restriction or information provision would be likely to cause a reduction in the volume or earnings of the export business which is substantial either in relation to the whole export business of the United Kingdom or in relation to the whole business (including export business) of the said trade or industry;

(g) that the restriction or information provision is reasonably required for purposes connected with the maintenance of any other restriction accepted or information provision made by the parties, whether under the same agreement or under any other agreement between them, being a restriction or information provision which is found by the Court not to be contrary to the public interest upon grounds other than those specified in this paragraph, or has been so found in previous proceedings before the Court; or

(h) that the restriction or information provision does not directly or indirectly restrict or discourage competition to any material degree in any relevant trade or industry and is not likely to do so;

and is further satisfied (in any such case) that the restriction or information provision is not unreasonable having regard to the balance between those circumstances and any detriment to the public or to persons not parties to the agreement (being users of services supplied by such parties, or persons engaged or seeking to become engaged in any business of supplying such services or of making available or supplying similar services, or being [F1 vendors], purchasers, consumers or users of goods [F2 or other property] in relation to which any such services or similar services are supplied) resulting or likely to result from the operation of the restriction or information provision.

(2) In this section—

(a) [F3 “vendors” ], “purchasers”, “consumers” and “users” include persons [F3 selling], purchasing, consuming or using for the purpose or in the course of trade or business or for public purposes; and

(b) references to any one person include references to any two or more persons being interconnected bodies corporate or individuals carrying on business in partnership with each other.

Textual Amendments

F1 Word inserted (1.5.1980) by Competition Act 1980 (c. 21), s. 28(1)(a)

F2 Words inserted (1.5.1980) by Competition Act 1980 (c. 21), s. 28(1)(b)

F3 Word inserted (1.5.1980) by Competition Act 1980 (c. 21), s. 28(2)