Competition Act 1998 (c. 41)

Part I U.K. Competition

Modifications etc. (not altering text)

C1 Pt. 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)

C2 Pt. 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

C3 Pt. 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

C4 Pt. 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)

C5 Pt. 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))

C6 Pt. 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))

C7 Pt. 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))

C8 Pt. 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))

C9 Pt. 1 restricted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), regs. 1(a), 9(2)

C10 Pt. 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))

C11 Pt. 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))

C12 Pt. 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)

C13 Pt. 1 modified (1.4.2007) by The Water and Sewerage Services (Northern Ireland) Order 2006 (S.I. 2006/3336), arts. 1(2), 29(5) (with arts. 8(8), 121(3), 307); S.R. 2007/194, art. 2(2), Sch. Pt. 2 (with Sch. 2)

C14 Pt. 1 modified (1.4.2013) by Health and Social Care Act 2012 (c. 7), ss. 72(3), 306(4); S.I. 2013/160, art. 2(2) (with arts. 7-9)

C15 Pt. 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)

C16 Pt. 1 modified in part (6.4.2013) by Civil Aviation Act 2012 (c. 19), ss. 62(4), 110(1) (with ss. 62(5), 77(1)-(3), Sch. 10 paras. 12, 17); S.I. 2013/589, art. 2(1)-(3)

C17 Pt. 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))

C18 Pt. 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)

C19 Pt. 1: certain functions made exercisable concurrently (26.12.2023) by Energy Act 2023 (c. 52), ss. 37, 334(3)(a) (with s. 38)

Chapter III U.K. Investigation and Enforcement

Modifications etc. (not altering text)

C20 Pt. 1 Ch. 3 applied in part (31.10.2023) by The Transport (Scotland) Act 2019 (Consequential Provisions and Modifications) Order 2023 (S.I. 2023/80), arts. 1(3), 22

[F1 Civil sanctions U.K.

Textual Amendments

F1 Ss. 40A, 40B and cross-heading inserted (25.4.2013 for specified purposes, 1.4.2014 in so far as not already in force) by Enterprise and Regulatory Reform Act 2013 (c. 24), ss. 40(2), 103(1)(i)(3); S.I. 2014/416, art. 2(1)(b) (with Sch.)

40A Penalties: [F2 failure to comply with requirements] [F2 amount] U.K.

[F3 (1) Where the CMA considers that a person has, without reasonable excuse, failed to comply with a requirement imposed on the person under section 26, 26A, 27, [F4 28, 28A or 40ZD], it may impose a penalty of such amount as it considers appropriate.]

[F3 (1A) A penalty imposed under section 40ZE(1) is to be of such amount as the CMA considers appropriate.]

(2) [F5 The amount may be—] [F5 A penalty imposed under section 40ZE(1)(a) may be—]

(a) a fixed amount,

(b) an amount calculated by reference to a daily rate, or

(c) a combination of a fixed amount and an amount calculated by reference to a daily rate.

[F6 (2A) A penalty imposed under any of section 40ZE(1)(b) to (e) must be a fixed amount.]

(3) [F7 A penalty imposed under subsection (1) must not—] [F7 A penalty imposed under section 40ZE(1) on a person who is not an undertaking must not—]

(a) in the case of a fixed amount, exceed [F8 such amount as the Secretary of State may by order specify] [F8 £30,000];

(b) in the case of an amount calculated by reference to a daily rate, exceed [F9 such amount per day as the Secretary of State may so specify] [F9 £15,000 per day];

(c) in the case of a fixed amount and an amount calculated by reference to a daily rate, exceed such fixed amount and such amount per day [F10 as the Secretary of State may so specify].

[F11 (3A) A penalty imposed under section 40ZE(1) on a person who is an undertaking must not—

(a) in the case of a fixed amount, exceed 1% of the turnover of the undertaking;

(b) in the case of an amount calculated by reference to a daily rate, for each day exceed 5% of the daily turnover of the undertaking;

(c) in the case of a fixed amount and an amount calculated by reference to a daily rate, exceed such fixed amount and such amount per day.]

(4) [F12 The fixed amount specified for the purposes of subsection (3)(a) or (c) may not exceed £30,000.]

(5) [F12 The amount per day specified for the purposes of subsection (3)(b) or (c) may not exceed £15,000.]

(6) In imposing a penalty by reference to a daily rate—

(a) no account is to be taken of any days before the service of the [F13 notice under section 112] [F13 provisional penalty notice under section 112(A1)] of the Enterprise Act 2002 (as applied by [F14 subsection (9)] [F14 section 40ZE(5)]) on the person concerned, and

(b) unless the CMA determines an earlier date (whether before or after the penalty is imposed), the amount payable ceases to accumulate at the beginning of the earliest of the days mentioned in subsection (7).

(7) The days are—

(a) the day on which the requirement concerned is satisfied;

(b) the day on which the CMA makes a decision (within the meaning given by section 31(2)) or terminates the investigation in question without making such a decision;

(c) if the Secretary of State has made an order under section 31F(1)(b) imposing a time-limit on the making of such a decision, the latest day on which such a decision may be made as a result of the investigation in question.

[F15 (7A) The Secretary of State may by regulations amend subsection (3)(a) and (b) by substituting for either or both of the sums for the time being specified in those paragraphs such other sum or sums as the Secretary of State considers appropriate.]

(8) Before making [F16 an order under subsection (3)] [F16 regulations under subsection (7A)], the Secretary of State must consult the CMA and such other persons as the Secretary of State considers appropriate.

(9) [F17 Sections 112 to 115 of the Enterprise Act 2002 (supplementary provisions about penalties) apply in relation to a penalty imposed under subsection (1) as they apply in relation to a penalty imposed under section 110(1) of that Act.]

[F18 (10) The Secretary of State may by regulations make provision for determining the turnover and daily turnover of an undertaking for the purposes of this section.

(11) Regulations under subsection (10) may, in particular, make provision as to—

(a) the amounts which are, or which are not, to be treated as an undertaking’s turnover or daily turnover;

(b) the date, or dates, by reference to which an undertaking’s turnover, or daily turnover, is to be determined.

(12) Regulations under subsection (10) may, in particular, make provision enabling the CMA to determine matters of a description specified in the regulations (including any of the matters mentioned in paragraphs (a) and (b) of subsection (11)).]]

Textual Amendments

F2 Word in s. 40A heading substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(2)

F3 S. 40A(1A) substituted for s. 40A(1) (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(3)

F4 Words in s. 40A(1) substituted (31.12.2020) by S.I. 2019/93, reg. 13B (as inserted by The Competition (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1343), regs. 1(1), 4)

F5 Words in s. 40A(2) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(4)

F6 S. 40A(2A) inserted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(5)

F7 Words in s. 40A(3) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(6)(a)

F8 Sum in s. 40A(3)(a) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(6)(b)

F9 Sum in s. 40A(3)(b) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(6)(c)

F10 Words in s. 40A(3)(c) omitted (24.5.2024 for specified purposes) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(6)(d)

F11 S. 40A(3A) inserted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(7)

F12 S. 40A(4)(5) omitted (24.5.2024 for specified purposes) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(8)

F13 Words in s. 40A(6)(a) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(9)(a)

F14 Words in s. 40A(6)(a) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(9)(b)

F15 S. 40A(7A) inserted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(10)

F16 Words in s. 40A(8) substituted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(11)

F17 S. 40A(9) omitted (24.5.2024 for specified purposes) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(12)

F18 S. 40A(10)-(12) inserted (24.5.2024 for specified purposes) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 9(13)