(1)The Director may make to the [F1Competition Commission]a reference which is so framed as to require the Commission to investigate and report on the questions—
(a)whether any matters which—
(i)relate to the carrying out of any function which is a function of any company by virtue of an appointment of that company under this Chapter; and
(ii)are specified in the reference,
operate, or may be expected to operate, against the public interest; and
(b)if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the conditions of the company’s appointment.
(2)The Director may, at any time, by notice given to the [F1Competition Commission]vary a reference under this section by—
(a)adding to the matters specified in the reference; or
(b)excluding from the reference some or all of the matters so specified;
and on receipt of any such notice the Commission shall give effect to the variation.
(3)The Director may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the [F1Competition Commission]in carrying out the investigation on the reference—
(a)any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and
(b)any modifications of the conditions of any appointment mentioned in the reference or variation by which, in his opinion, those effects could be remedied or prevented.
(4)As soon as practicable after making a reference under this section or a variation of such a reference, the Director shall—
(a)serve a copy of the reference or variation on the company whose appointment is mentioned in the reference or variation; and
(b)publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.
(5)It shall be the duty of the Director, for the purpose of assisting the [F1Competition Commission] in carrying out an investigation on a reference under this section, to give to the Commission—
(a)any information in his possession which relates to matters falling within the scope of the investigation, and which is either—
(i)requested by the Commission for that purpose; or
(ii)information which, in his opinion, it would be appropriate for that purpose to give to the Commission without any such request;
and
(b)any other assistance which the Commission may require, and which it is within his power to give, in relation to any such matters;
and the Commission, for the purpose of carrying out any such investigation, shall take account of any information given to them for that purpose under this subsection.
(6)In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the [F1Competition Commission]shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Director by Part I of this Act.
[F2(7)The provisions mentioned in subsection (7A) are to apply in relation to references under this section as if—
(a)the functions of the Competition Commission in relation to those references were functions under the 1973 Act;
(b)the expression “merger reference” included a reference under this section;
(c)in section 70 of the 1973 Act—
(i)references to the Secretary of State were references to the Director, and
(ii)the reference to three months were a reference to six months.
(7A)The provisions are—
(a)sections 70 (time limit for report on merger) and 85 (attendance of witnesses and production of documents) of the 1973 Act;
(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 1980 Act (modification of provisions about performance of such functions).
(8)For the purposes of references under this section, the Secretary of State is to appoint not less than eight members of the Competition Commission.
(8A)In selecting a group to perform the Commission’s functions in relation to any such reference, the chairman of the Commission must select one or more of the members appointed under subsection (8) to be members of the group.]
Textual Amendments
F1Words in s. 14(1)-(3)(5)(6) substituted (1.4.1999) by S.I. 1999/506, art. 30(b)
F2S. 14(7)-(8A) substituted (1.4.1999) for s. 14(7)(8) by 1998 c. 41, s. 66(5), Sch. 10 Pt. IV para. 13(3) (with s. 73); S.I. 1999/505, art. 2