Competition Act 1998

36 [F1 Penalties]. U.K.

(1) On making a decision that an agreement has infringed the Chapter I prohibition [F2 or that it has infringed the prohibition in Article 81(1)], the [F3 OFT] may require an undertaking which is a party to the agreement to pay [F4 the OFT] a penalty in respect of the infringement.

(2) On making a decision that conduct has infringed the Chapter II prohibition [F5 or that it has infringed the prohibition in Article 82], the [F3 OFT] may require the undertaking concerned to pay [F4 the OFT] a penalty in respect of the infringement.

(3) The [F3 OFT] may impose a penalty on an undertaking under subsection (1) or (2) only if [F6 the OFT] 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 [F7 in relation to a decision that an agreement has infringed the Chapter I prohibition] if the [F3 OFT] 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 [F8 in relation to a decision that conduct has infringed the Chapter II prohibition] if the [F3 OFT] 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.

(8) No penalty fixed by the [F3 OFT] 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 [F3 OFT] under this section are to be paid into the Consolidated Fund.

Textual Amendments

F1 Word in s. 36 sidenote substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(6)

F2 Words in s. 36(1) inserted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(2)

F3 Word in s. 36 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(28)(a); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

F4 Words in s. 36(1)(2) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(28)(b); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

F5 Words in s. 36(2) inserted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(3)

F6 Words in s. 36(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(28)(c); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

F7 Words in s. 36(4) inserted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(4)

F8 Words in s. 36(5) inserted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(5)