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Schedules

Schedule 11U.K.Civil penalties etc in connection with breaches of remedies

Part 2U.K.Undertakings and orders under Part 3 of EA 2002 (mergers)

7U.K.In Part 3 of EA 2002 (mergers), Chapter 4 (enforcement) is amended as follows.

Commencement Information

I1Sch. 11 para. 7 not in force at Royal Assent, see s. 339(1)

I2Sch. 11 para. 7 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(15)

8(1)Section 34C (functions to be exercised by CMA groups) is amended as follows.U.K.

(2)In subsection (1)(e), for “94A” substitute 94AA.

(3)In subsection (3)(e), for “and 94” substitute “, 94 and 94AA.

Commencement Information

I3Sch. 11 para. 8 not in force at Royal Assent, see s. 339(1)

I4Sch. 11 para. 8 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(15) (with Sch. paras. 16(2)(3), 20)

9(1)Section 89 (subject-matter of undertakings) is amended as follows.U.K.

(2)In the heading, at the start insert “Acceptance and”.

(3)Before subsection (1) insert—

(A1)An appropriate authority may not accept an enforcement undertaking from a person unless it has provided the person with information about the possible consequences of failing to comply with the undertaking.

(4)After subsection (2) insert—

(3)In this section, “appropriate authority” has the same meaning as in section 94AA.

Commencement Information

I5Sch. 11 para. 9 not in force at Royal Assent, see s. 339(1)

I6Sch. 11 para. 9 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(15)

10U.K.In section 94 (rights to enforce undertakings and orders), after subsection (9) insert—

(10)In deciding whether and, if so, how to proceed under this section, the CMA must have regard to the statement of policy which was most recently published by it under section 94B at the time of the failure to comply with the undertaking or (as the case may be) order.

Commencement Information

I7Sch. 11 para. 10 not in force at Royal Assent, see s. 339(1)

I8Sch. 11 para. 10 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(15) (with Sch. paras. 16(2)(3), 20)

11U.K.For section 94A substitute—

94AAEnforcement of undertakings and orders: imposition of penalties

(1)The appropriate authority may, in accordance with section 94AB, impose a penalty on a person—

(a)from whom the authority has accepted an enforcement undertaking, or

(b)to whom an enforcement order is addressed,

where the authority considers that the person has, without reasonable excuse, failed to comply with the undertaking or order.

(2)In this section and in section 94AB, “the appropriate authority” means—

(a)in relation to an enforcement undertaking or enforcement order made by the Secretary of State under Schedule 7, the Secretary of State;

(b)in relation to any other enforcement undertaking or enforcement order, the CMA.

(3)In deciding whether and, if so, how to proceed under subsection (1) the CMA must have regard to the statement of policy which was most recently published under section 94B at the time of the failure to comply.

94ABPenalties under section 94AA: amount

(1)A penalty under section 94AA(1) is to be such amount as the appropriate authority considers appropriate.

(2)The amount must 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.

(3)A penalty imposed under section 94AA(1) on a person who does not own or control an enterprise must not—

(a)in the case of a fixed amount, exceed £30,000;

(b)in the case of an amount calculated by reference to a daily rate, exceed £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.

(4)A penalty imposed under section 94AA(1) on any other person must not—

(a)in the case of a fixed amount, exceed 5% of the total value of the turnover (both in and outside the United Kingdom) of the enterprises owned or controlled by the person on whom it is imposed;

(b)in the case of an amount calculated by reference to a daily rate, for each day exceed 5% of the total value of the daily turnover (both in and outside the United Kingdom) of the enterprises owned or controlled by the person on whom it is imposed;

(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.

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

(a)no account is to be taken of any days before the service on the person concerned of the provisional penalty notice under section 112(A1) (as applied by subsection (6)), 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 day on which the person complies with the enforcement undertaking or enforcement order.

(6)Sections 112 to 115 apply in relation to a penalty imposed under section 94AA(1) as they apply in relation to a penalty imposed under section 110(1) or (1A), with the following modifications—

(a)any reference in those provisions to the appropriate authority is to be read as a reference to the appropriate authority within the meaning of this section (see section 94AA(2));

(b)section 114(5A) is to be read as if the words “or OFCOM” were omitted;

(c)section 114(12) is to be read as if, for paragraph (b), there were substituted—

(b)relevant guidance” means the statement of policy which was most recently published under section 94B at the time when the act or omission concerned occurred.

(7)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 regulations under subsection (7) the Secretary of State must consult—

(a)the CMA, and

(b)such other persons as the Secretary of State considers appropriate.

(9)The Secretary of State may by regulations make provision for determining, for the purposes of this section—

(a)when an enterprise is to be treated as being controlled by a person;

(b)the turnover and daily turnover (both in and outside the United Kingdom) of an enterprise.

(10)Regulations under subsection (9)(b) may, in particular, make provision as to—

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

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

(11)Regulations under subsection (9) may, in particular, make provision enabling the appropriate authority to determine matters of a description specified in the regulations (including any of the matters mentioned in paragraphs (a) and (b) of subsection (10)).

Commencement Information

I9Sch. 11 para. 11 in force at Royal Assent for specified purposes, see s. 339(2)(c)

I10Sch. 11 para. 11 in force at 1.1.2025 in so far as not already in force by S.I. 2024/1226, regs. 1(2), 2(1)(15) (with Sch. paras. 16(2)(3)(7), 20)

12(1)Section 94B (statement of policy in relation to powers under sections 94 and 94A) is amended as follows.U.K.

(2)In the heading—

(a)for “powers” substitute “functions”.

(b)for “94A” substitute 94AA.

(3)In subsection (1)—

(a)in the words before paragraph (a), for “use of its powers” substitute “exercise of functions”;

(b)in paragraph (a) omit “, insofar as they relate to interim measures”;

(c)in paragraph (b), for “94A” substitute 94AA.

(4)In subsection (2), for “94A” substitute 94AA.

(5)Omit subsection (6).

Commencement Information

I11Sch. 11 para. 12 not in force at Royal Assent, see s. 339(1)

I12Sch. 11 para. 12 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(15) (with Sch. paras. 16(2)(3), 20)

13U.K.In section 120 (review of decisions under Part 3), in subsection (2), in paragraph (a), for “94A(1)” substitute 94AA(1).

Commencement Information

I13Sch. 11 para. 13 not in force at Royal Assent, see s. 339(1)

I14Sch. 11 para. 13 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(15) (with Sch. paras. 16(2)(3), 20)