SCHEDULE 4 References with Respect to Networking Arrangements
References to MMC
4
(1)
Where the Director’s report on any arrangements contains any such conclusions as are mentioned in paragraph 1(4), the F1ITC or the holder of any regional Channel 3 licence may, within the relevant period, make to the F2Competition Commission a reference which is so framed as to require the F2Competition Commission to investigate and report on either or both of the following questions, namely—
(a)
whether the arrangements, or any particular provisions of the arrangements, satisfy the competition test;
(b)
whether the modifications specified in the report, or any particular modification so specified, ought to be incorporated in the arrangements for the purpose of enabling them to satisfy that test.
(2)
In sub-paragraph (1) “the relevant period” means the period of four weeks beginning with the date of publication of the Director’s report.
(3)
Where a reference is made to the F2Competition Commission under this paragraph, the F2Competition Commission shall (subject to sub-paragraphs (4) and (5))—
(a)
publish a notice of the reference in such manner as they consider most suitable for bringing it to the attention of persons who, in the opinion of the F2Competition Commission, would be affected by or be likely to have an interest in it; and
(b)
make a report on the reference within the period of three months beginning with the date of publication of the notice referred to in paragraph (a).
(4)
The period referred to in sub-paragraph (3)(b) may be extended by the F2Competition Commissionby a further period of three months if they consider it necessary to do so.
(5)
The F2Competition Commission shall not be required to proceed with any reference under this paragraph which appears to them to be frivolous or vexatious; but, where they decide not to proceed with any such reference, they shall publish a notice of their decision in such manner as they consider appropriate.
(6)
If—
(a)
while the F2Competition Commission are proceeding with any reference under this paragraph, the Director is informed in accordance with section 39(12)(b) of this Act of any modification to the arrangements in respect of which the reference has been made, and
(b)
it appears to him that the modification is material to any issue falling to be considered by the F2Competition Commission on the reference,
he shall refer the modification to the F2Competition Commission, who may, if they think fit, treat the reference as varied so far as is necessary to take account of the modification; and, if they do so, references to those arrangements in paragraphs 5 and 6 shall accordingly be construed as references to those arrangements as modified.
F3(7)
The provisions mentioned in sub-paragraph (7A) are to apply in relation to references under this paragraph as if—
(a)
the functions of the Competition Commission in relation to those references were functions under the M1Fair Trading Act 1973;
(b)
the expression “merger reference” included a reference under this paragraph.;.
(7A)
The provisions are—
(a)
section 85 of the Fair Trading Act 1973 (attendance of witnesses and production of documents)
(b)
Part II of Schedule 7 to the Competition Act 1998 (performance of the Competition Commission’s general functions); and
(c)
section 24 of the M2Competition Act 1980 (modification of provisions about performance of such functions).
F4Further provision about references under paragraph 4
4A
(1)
The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in sub-paragraphs (2) and (3), for the purposes of references under paragraph 4 as they apply for the purposes of references under that Part—
(a)
section 109 (attendance of witnesses and production of documents etc.);
(b)
section 110 (enforcement of powers under section 109: general);
(c)
section 111 (penalties);
(d)
section 112 (penalties: main procedural requirements);
(e)
section 113 (payments and interest by instalments);
(f)
section 114 (appeals in relation to penalties);
(g)
section 115 (recovery of penalties); and
(h)
section 116 (statement of policy).
(2)
Section 110 shall, in its application by virtue of sub-paragraph (1), have effect as if—
(a)
subsection (2) were omitted; and
(b)
in subsection (9) the words from “or section” to “section 65(3))” were omitted.
(3)
Section 111(5)(b)(ii) shall, in its application by virtue of sub-paragraph (1), have effect as if—
(a)
for the words “published (or, in the case of a report under section 50 or 65, given)” there were substituted “made”;
(b)
for the words “published (or given)”, in both places where they appear, there were substituted ”made“; and
(c)
the words “by this Part” were omitted.
(4)
Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of sub-paragraph (1), have effect in relation to those sections as applied by virtue of that sub-paragraph.
(5)
Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that sub-paragraph.