PART IVU.K. COMPETITION RULES

CHAPTER I U.K. Rules applying to undertakings

Article 206U.K.F1... The application of competition rules to agriculture

[F2Save as otherwise provided in this Regulation and subject, in particular, to Articles 207 to 210 of this Regulation, the Competition Act 1998 shall apply to all agreements, decisions and practices referred to in sections 2(1) and 18(1) of that Act which relate to the production of, or trade in, agricultural products.]

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Article 207U.K.Relevant market

The definition of the relevant market is a tool to identify and define the boundaries of competition between undertakings, and shall be founded on two cumulative elements:

(a)

the relevant product market: for the purposes of this Chapter, "product market" means the market comprising all those products which are regarded as interchangeable or substitutable by the consumer by reason of the products' characteristics, their prices and their intended use;

(b)

the relevant geographic market: for the purposes of this Chapter, "geographic market" means the market comprising the area in which the undertakings concerned are involved in the supply of the relevant products, in which the conditions of competition are sufficiently homogeneous and which can be distinguished from neighbouring areas, particularly because the conditions of competition are appreciably different in those areas.

Article 208U.K.Dominant position

For the purposes of this Chapter, "dominant position" means a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained in the relevant market by giving it the power to behave to an appreciable extent independently of its competitors, customers and ultimately of consumers.

Article 209U.K.Exceptions for the objectives [F4set out in Article 39 TFEU] and farmers and their associations

1.[F5Section 2(1) of the Competition Act 1998] shall not apply to the agreements, decisions and practices referred to in Article 206 of this Regulation necessary for the attainment of the objectives set out in Article 39 TFEU.

[F6[F5Section 2(1) of the Competition Act 1998] shall not apply to agreements, decisions and concerted practices of farmers, farmers' associations, or associations of such associations, or producer organisations recognised under Article 152 or Article 161 of this Regulation, or associations of producer organisations recognised under Article 156 of this Regulation, which concern the production or sale of agricultural products or the use of joint facilities for the storage, treatment or processing of agricultural products, unless the objectives set out in Article 39 TFEU are jeopardised.]

This paragraph shall not apply to agreements, decisions and concerted practices which entail an obligation to charge an identical price or by which competition is excluded.

2.Agreements, decisions and concerted practices which fulfil the conditions referred to in paragraph 1 of this Article shall not be prohibited, no prior decision to that effect being required.

[F7However, farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 or Article 161 of this Regulation, or associations of producer organisations recognised under Article 156 of this Regulation, may request an opinion from the [F8Competition and Markets Authority] on the compatibility of those agreements, decisions and concerted practices with the objectives set out in Article 39 TFEU.

The [F9Competition and Markets Authority] shall deal with requests for opinions promptly and shall send the applicant its opinion within four months of receipt of a complete request. The [F9Competition and Markets Authority] may F10... change the content of an opinion, in particular if the applicant has provided inaccurate information or misused the opinion.]

In any F11... proceedings for the application of [F12section 2 of the Competition Act 1998], the burden of proving an infringement of [F13section 2(1) of the Competition Act 1998] shall rest on the party or the authority alleging the infringement. The party claiming the benefit of the exemptions provided in paragraph 1 of this Article shall bear the burden of proving that the conditions of that paragraph are fulfilled.

Textual Amendments

Article 210U.K.Agreements and concerted practices of recognised interbranch organisations

1.[F14Section 2(1) of the Competition Act 1998] shall not apply to agreements, decisions and concerted practices of interbranch organisations recognised under Article 157 of this Regulation with the object of carrying out the activities listed in point (c) of Article 157(1) and, for the milk and milk products sector, in point (c) of Article 157(3) of this Regulation, and, for the olive oil and table olives and tobacco sectors, in Article 162 of this Regulation.

2.Paragraph 1 shall apply provided that:

(a)the agreements, decisions and concerted practices referred to therein have been notified to the [F15Competition and Markets Authority]; and

(b)within two months of receipt of all the details required the [F16Competition and Markets Authority] has not found that those agreements, decisions or concerted practices are incompatible with [F17any applicable legislation].

Where the [F18Competition and Markets Authority] finds that the agreements, decisions or concerted practices referred to in paragraph 1 are incompatible with [F19any applicable legislation], it shall set out its finding F20....

3.The agreements, decisions and concerted practices referred to in paragraph 1 may not be put into effect before the lapse of the two-month period referred to in point (b) of the first subparagraph of paragraph 2.

4.Agreements, decisions and concerted practices shall in any case be declared incompatible with [F21any applicable legislation] if they:

(a)may lead to the partitioning of markets within the [F22United Kingdom] in any form;

(b)may affect the sound operation of the market organisation;

(c)may create distortions of competition which are not essential to achieving the objectives [F23set out in Article 39 TFEU which are] pursued by the interbranch organisation activity;

(d)entail the fixing of prices or the fixing of quotas;

(e)may create discrimination or eliminate competition in respect of a substantial proportion of the products in question.

5.If, following the expiry of the two-month period referred to in point (b) of the first subparagraph of paragraph 2, the [F24Competition and Markets Authority] finds that the conditions for applying paragraph 1 have not been met, it shallF25... take a decision declaring that [F26section 2(1) of the Competition Act 1998] applies to the agreement, decision or concerted practice in question.

[F27That decision of the Competition and Markets Authority] shall not apply earlier than the date of its notification to the interbranch organisation concerned, unless that interbranch organisation has given incorrect information or abused the exemption provided for in paragraph 1.

6.In the case of multiannual agreements, the notification for the first year shall be valid for the subsequent years of the agreement. However, in that event, the [F28Competition and Markets Authority] mayF29... issue a finding of incompatibility at any time.

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Textual Amendments

CHAPTER IIU.K.State aid rules

F31Article 211U.K.Application of Articles 107 to 109 TFEU

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F32Article 212U.K.National payments related to wine support programmes

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F32Article 213U.K.National payments for reindeer in Finland and Sweden

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F32Article 214U.K.National payments for the sugar sector in Finland

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F32Article 214aU.K. National payments for certain sectors in Finland

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Article 215U.K.F33... Payments for apiculture

[F34The relevant authority] may make F35... payments for the protection of apiaries disadvantaged by structural or natural conditions or under economic development programmes, except for those allocated for production or trade.

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F36Article 216U.K.National payments for distillation of wine in cases of crisis

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[F38Article 217U.K. F37... Payments for the distribution of products to children

[F39The relevant authority] may make F40... payments for supplying to children in educational establishments the groups of eligible products referred to in Article 23, for accompanying educational measures related to such products and for the related costs referred to in point (c) of Article 23(1).

[F39The relevant authority] may finance those payments by means of a levy on the sector concerned or by means of any other contribution from the private sector.]

Textual Amendments

Article 218U.K.F41... Payments for nuts

1.[F42The relevant authority] may make F43... payments, up to a maximum of EUR 120,75 per hectare per year, to farmers producing the following products:

(a)almonds falling within CN codes 0802 11 and 0802 12;

(b)hazelnuts or filberts falling within CN codes 0802 21 and 0802 22;

(c)walnuts falling within CN codes 0802 31 00 and 0802 32 00;

(d)pistachios falling within CN codes 0802 51 00 and 0802 52 00;

(e)locust beans falling within CN code 1212 92 00.

[F442.The relevant authorities between them may not make payments under paragraph 1 in respect of more than 100 hectares per year.]

3.[F45The relevant authority] may make the granting of F46... payments referred to in paragraph 1 conditional on farmers being members of a producer organisation recognised under Article 152.

Textual Amendments