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Part IU.K. Competition

Modifications etc. (not altering text)

C1Pt. 1: certain functions made exercisable concurrently (26.11.1998 for certain purposes and prosp. otherwise) by 1984 c. 12, s. 50(3) (as substituted by 1998 c. 41, s. 66(5), Sch. 10 Pt. II para. 2(6) (with s. 73); S.I. 1998/2750, art. 2)

C2Pt. 1 (except ss. 38(1)-(6), 51) amended (1.2.2001) by 2000 c. 38, ss. 86(1)(3), 89 (with ss. 105(2)(d)(5), 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. 1

C3Pt. 1 (except ss. 38(1)-(6), 51, 52(6) and (8) and 54) amended (1.2.2001) by 2000 c. 38, s. 86(4)(b)(5) (with ss. 105(2)(d)(5), 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. 1

Pt. 1 (except ss. 38(1)-(6), 51) amended (1.2.2001) by 2000 c. 38, s. 86(7)(b) (with ss. 105(2)(d)(5), 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. 1

C4Pt. 1 modified (25.7.2003 for specified purposes, 29.12.2003 in so far as not already in force) by Communications Act 2003 (c. 21), ss. 371(3), 411(2) (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(2) (with art. 11)

C5Pt. 1 certain functions made exercisable concurrently by 1998 c. 41, s. 67(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 6(2)(a))

C6Pt. 1 certain functions made exercisable concurrently by 1991 c. 56, s. 31(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 4(2)(a))

C7Pt. 1 certain functions made exercisable concurrently by S.I. 1992/231 (N.I. 1) art. 46(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 5(2)(a))

C8Pt. 1 certain functions made exercisable concurrently by 1986 c. 44, s. 36A(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 1(2)(a))

C10Pt. 1 certain functions made exercisable concurrently by 1989 c. 29, s. 43(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 3(2)(a))

C11Pt. 1 certain functions made exercisable concurrently by S.I. 1996/275 (N.I. 2), art. 23(3) (as substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 2 para. 9(2)(a))

C12Pt. 1 certain functions made exercisable concurrently (1.4.2007) by The Water and Sewerage Services (Northern Ireland) Order 2006 (S.I. 2006/3336), arts. 1(2), 29(3) (with arts. 8(8), 121(3), 307); S.R. 2007/194, art. 2(2), Sch. Pt. 2 (with Sch. 2)

C15Pt. 1 functions made exercisable concurrently (6.4.2013) by Civil Aviation Act 2012 (c. 19), ss. 62(1)-(3), 110(1) (with s. 77(1)-(3), Sch. 10 paras. 12, 17); S.I. 2013/589, art. 2(1)-(3)

C17Pt. 1 certain functions made exercisable concurrently by 2000 c. 8, s. 234J (as inserted (1.11.2014 for specified purposes, 1.4.2015 so far as not already in force) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 8 para. 3; S.I. 2014/2458, arts. 2(b)(aa)(i), 3(b)(v))

C18Pt. 1 certain functions made exercisable concurrently (1.11.2014 for specified purposes, 1.4.2015 so far as not already in force) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 61(2), 148(5); S.I. 2014/2458, arts. 2(a)(i), 3(b)(ii)

C19Pt. 1: certain functions made exercisable concurrently (26.12.2023) by Energy Act 2023 (c. 52), ss. 37, 334(3)(a) (with s. 38)

Chapter IU.K. Agreements

Modifications etc. (not altering text)

ExemptionsU.K.

4 Individual exemptions.U.K.

[F1(1)The [F2OFT] may grant an exemption from the Chapter I prohibition with respect to a particular agreement if—

(a)a request for an exemption has been made to [F2it] under section 14 by a party to the agreement; and

(b)the agreement is one to which section 9 applies.

(2)An exemption granted under this section is referred to in this Part as an individual exemption.

(3)The exemption—

(a)may be granted subject to such conditions or obligations as the [F2OFT] considers it appropriate to impose; and

(b)has effect for such period as the [F2OFT] considers appropriate.

(4)That period must be specified in the grant of the exemption.

(5)An individual exemption may be granted so as to have effect from a date earlier than that on which it is granted.

(6)On an application made in such way as may be specified by rules under section 51, the [F2OFT] may extend the period for which an exemption has effect; but, if the rules so provide, [F2it] may do so only in specified circumstances.]

Textual Amendments

F2Words in s. 4 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(3); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

5 Cancellation etc. of individual exemptions.U.K.

[F3(1)If the [F4OFT] has reasonable grounds for believing that there has been a material change of circumstance since [F4it] granted an individual exemption, [F4it] may by notice in writing—

(a)cancel the exemption;

(b)vary or remove any condition or obligation; or

(c)impose one or more additional conditions or obligations.

(2)If the [F4OFT] has a reasonable suspicion that the information on which [F4it] based [F4its] decision to grant an individual exemption was incomplete, false or misleading in a material particular, [F4it] may by notice in writing take any of the steps mentioned in subsection (1).

(3)Breach of a condition has the effect of cancelling the exemption.

(4)Failure to comply with an obligation allows the [F4OFT], by notice in writing, to take any of the steps mentioned in subsection (1).

(5)Any step taken by the [F4OFT] under subsection (1), (2) or (4) has effect from such time as may be specified in the notice.

(6)If an exemption is cancelled under subsection (2) or (4), the date specified in the notice cancelling it may be earlier than the date on which the notice is given.

(7)The [F4OFT] may act under subsection (1), (2) or (4) on [F4its] own initiative or on a complaint made by any person.]

Textual Amendments

F4Words in s. 5 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(4); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

6 Block exemptions.U.K.

(1)If agreements which fall within a particular category of agreement are, in the opinion of the [F5CMA], likely to be [F6exempt agreements], the [F5CMA] may recommend that the Secretary of State make an order specifying that category for the purposes of this section.

(2)The Secretary of State may make an order (“a block exemption order”) giving effect to such a recommendation—

(a)in the form in which the recommendation is made; or

(b)subject to such modifications as he considers appropriate.

(3)An agreement which falls within a category specified in a block exemption order is exempt from the Chapter I prohibition.

(4)An exemption under this section is referred to in this Part as a block exemption.

(5)A block exemption order may impose conditions or obligations subject to which a block exemption is to have effect.

(6)A block exemption order may provide—

(a)that breach of a condition imposed by the order has the effect of cancelling the block exemption in respect of an agreement;

(b)that if there is a failure to comply with an obligation imposed by the order, the [F5CMA] may, by notice in writing, cancel the block exemption in respect of the agreement;

(c)that if the [F5CMA] considers that a particular agreement is not [F7an exempt agreement], [F8it] may cancel the block exemption in respect of that agreement.

(7)A block exemption order may provide that the order is to cease to have effect at the end of a specified period.

[F9(8)In this section—

Textual Amendments

F8Word in s. 6(6)(c) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(5)(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.)

Modifications etc. (not altering text)

7 Block exemptions: opposition.U.K.

[F10(1)A block exemption order may provide that a party to an agreement which—

(a)does not qualify for the block exemption created by the order, but

(b)satisfies specified criteria,

may notify the [F11OFT] of the agreement for the purposes of subsection (2).

(2)An agreement which is notified under any provision included in a block exemption order by virtue of subsection (1) is to be treated, as from the end of the notice period, as falling within a category specified in a block exemption order unless the [F11OFT]—

(a)is opposed to its being so treated; and

(b)gives notice in writing to the party concerned of [F11its] opposition before the end of that period.

(3)If the [F11OFT] gives notice of [F11its] opposition under subsection (2), the notification under subsection (1) is to be treated as both notification under section 14 and as a request for an individual exemption made under subsection (3) of that section.

(4)In this section “notice period” means such period as may be specified with a view to giving the [F11OFT] sufficient time to consider whether to oppose under subsection (2).]

Textual Amendments

F11Words in s. 7 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(6); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

8 Block exemptions: procedure.U.K.

(1)Before making a recommendation under section 6(1), the [F12CMA] must—

(a)publish details of [F13its] proposed recommendation in such a way as [F13it] thinks most suitable for bringing it to the attention of those likely to be affected; and

(b)consider any representations about it which are made to [F13it].

(2)If the Secretary of State proposes to give effect to such a recommendation subject to modifications, he must inform the [F12CMA] of the proposed modifications and take into account any comments made by the [F12CMA] .

(3)If, in the opinion of the [F12CMA] , it is appropriate to vary or revoke a block exemption order [F14it] may make a recommendation to that effect to the Secretary of State.

(4)Subsection (1) also applies to any proposed recommendation under subsection (3).

(5)Before exercising [F13its] power to vary or revoke a block exemption order (in a case where there has been no recommendation under subsection (3)), the Secretary of State must—

(a)inform the [F15CMA] of the proposed variation or revocation; and

(b)take into account any comments made by the [F15CMA] .

(6)A block exemption order may provide for a block exemption to have effect from a date earlier than that on which the order is made.

Textual Amendments

F13Word in s. 8(1) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(7)(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.)

F14Word in s. 8(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(7)(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.)

Modifications etc. (not altering text)

9 [F16Exempt agreements].U.K.

[F17(1)][F18An agreement is exempt from the Chapter I prohibition if it]—

(a)contributes to—

(i)improving production or distribution, or

(ii)promoting technical or economic progress,

while allowing consumers a fair share of the resulting benefit; [F19and]

(b)does not—

(i)impose on the undertakings concerned restrictions which are not indispensable to the attainment of those objectives; or

(ii)afford the undertakings concerned the possibility of eliminating competition in respect of a substantial part of the products in question.

[F20(2)In any proceedings in which it is alleged that the Chapter I prohibition is being or has been infringed by an agreement, any undertaking or association of undertakings claiming the benefit of subsection (1) shall bear the burden of proving that the conditions of that subsection are satisfied.]

Textual Amendments

10 [F21[F22Assimilated] exemptions].U.K.

[F23(A1)An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in [F24an assimilated] block exemption regulation.]

F25(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F26(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)An exemption from the Chapter I prohibition under this section is referred to in this Part as [F27an assimilated] [F28exemption].

(4)[F29An assimilated] [F30exemption]—

F31(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)ceases to have effect—

(i)if the relevant [F32[F33assimilated] block exemption regulation] ceases to have effect; or

(ii)on being cancelled by virtue of subsection (5) or (7).

(5)In such circumstances and manner as may be specified in rules made under section 51, the [F34CMA] may—

(a)impose conditions or obligations subject to which [F35an assimilated] [F36exemption] is to have effect [F37in respect of an agreement];

(b)vary or remove any such condition or obligation;

(c)impose one or more additional conditions or obligations;

(d)cancel the exemption [F38in respect of an agreement].

(6)In such circumstances as may be specified in rules made under section 51, the date from which cancellation of an exemption is to take effect may be earlier than the date on which notice of cancellation is given.

(7)Breach of a condition imposed by the [F39CMA] has the effect of cancelling the exemption.

(8)In exercising [F40its] powers under this section, the [F41CMA] may require any person who is a party to the agreement in question to give [F40it] such information as [F40it] may require.

F42(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F42(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F42(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F43(12) In this Part, “ [F44assimilated] block exemption regulation” means the following regulations as amended from time to time—

(a)Council Regulation (EC) 169/2009 applying rules of competition to transport by rail, road and inland waterway;

(b)Commission Regulation (EC) 906/2009 on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia);

(c)Commission Regulation (EU) 330/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices;

(d)Commission Regulation (EU) 461/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector;

(e)Commission Regulation (EU) 1217/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of research and development agreements;

(f)Commission Regulation (EU) 1218/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of specialisation agreements;

(g)Commission Regulation (EU) 316/2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements.]

Textual Amendments

F40Words in s. 10(8) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(8)(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.)

Modifications etc. (not altering text)

[F4510APower to vary etc [F46assimilated] block exemption regulationsU.K.

(1)The Secretary of State may by regulations vary or revoke [F47an assimilated] block exemption regulation.

(2)In exercising the power under subsection (1), the Secretary of State must have regard to the conditions specified in section 9(1) for exemption from the Chapter 1 prohibition.

(3)If, in the opinion of the CMA, it is appropriate to vary or revoke [F48an assimilated] block exemption regulation, the CMA may make a recommendation to that effect to the Secretary of State.

(4)Before making a recommendation under subsection (3), the CMA must—

(a)publish details of its proposed recommendation in such a way as it thinks most suitable for bringing it to the attention of those likely to be affected; and

(b)consider any representations about it which are made to it.

(5)Before exercising the power to vary or revoke [F49an assimilated] block exemption regulation (in a case where there has been no recommendation under subsection (3)), the Secretary of State must—

(a)inform the CMA of the proposed variation or revocation; and

(b)take into account any comments made by the CMA.]

Textual Amendments

Modifications etc. (not altering text)

F5011 Exemption for certain other agreements.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments