The Monopolies and Mergers Commission (Performance of Functions) Order 1989

Explanatory Note

(This note is not part of the Order)

Part II of Schedule 3 to the Fair Trading Act 1973 sets out the manner in which the Monopolies and Mergers Commission perform their functions. Power is given to the Secretary of State under the Competition Act 1980 to make such modifications to Part II as appear to him to be appropriate for improving the performance by the Commission of their functions.

Part II permits the chairman of the Commission to issue a direction enabling the Commission to perform their functions in relation to any investigation through a group of members of the Commission. This Order reduces from 5 to 3 the minimum number of members of the Commission who may constitute a group for the purpose of performing the functions of the Commission under the Fair Trading Act 1973, the Competition Act 1980, the Airports Act 1986 and the Gas Act 1986. For the purpose of the performance of the Commission’s functions under the Telecommunications Act 1984, however, the minimum number who may constitute a group remains 5.

The Order also allows the chairman of the Commission to perform the functions of the Commission under section 75(5) of the Fair Trading Act 1973 in circumstances where he has not yet made a direction that the Commission should act through a group. Section 75(5) provides for the Commission to seek the Secretary of State’s consent to the laying aside of a merger reference made under section 75 where it appears to them that the proposal which is the subject of the reference has been abandoned.