The Enterprise Act 2002 (Enforcement Undertakings) (No.2) Order 2006

EXPLANATORY NOTE

(This note is not part of the Order)

This Order specifies certain undertakings accepted by a Minister of the Crown in relation to merger and monopoly situations under section 88 of the Fair Trading Act 1973 (c.41) (“the 1973 Act”) for the purposes of paragraphs 15(1) and (3) and 16(1) of Schedule 24 to the Enterprise Act 2002 (“the Act”). This Order also specifies certain undertakings specified by a Minister of the Crown in relation to merger situations under section 75G of the 1973 Act for the purposes of paragraphs 15(1) and 16(1) of Schedule 24 to the Act.

Although Part V and related provisions of the 1973 Act have been repealed they continue to apply in relation to certain undertakings, by virtue of paragraph 13(1) and (2) of Schedule 24 to the Act and Article 4 of the Enterprise Act 2002 (Commencement No 3, Transitional and Transitory Provisions and Savings) Order 2003 (SI 2003/1397), subject to paragraphs 15 to 18 of Schedule 24 to the Act.

The effect of specification under paragraph 15(1) is that sections 94(1) to (6) of the Act (which provides for the enforcement of undertakings and related rights) shall apply in relation to the undertakings instead of sections 93 and 93A of the 1973 Act.

Specification under paragraph 15(3) has the effect that undertakings made under section 88 may be enforced by civil proceedings brought by the Competition Commission. The effect of specification under paragraph 16(1) is to provide the Competition Commission, in the case of section 88 cases, and the Office of Fair Trading, in the case of section 75G cases, with a power to supersede, vary or release any such undertaking instead of the Secretary of State.

Article 4 provides that where certain undertakings refer to action requiring the consent, approval or agreement of the Secretary of State, the Office of Fair Trading may give such consent, approval or agreement in place of the Secretary of State.

Copies of the merger undertakings and press notices referred to in the Schedule may be obtained from the Consumer and Competition Policy Directorate, DTI (telephone: [phone]; facsimile: 020 7215 6565; e–mail: [e-mail]).

A regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.