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Enterprise and Regulatory Reform Bill (HC Bill 7)

Enterprise and Regulatory Reform BillPage 100

(j) section 168;

(k) section 169, so far as relating to a decision mentioned in
paragraph (a)(iii) of the definition of relevant decision in
subsection (6) of that section;

(l) 5section 172, so far as relating to anything done on behalf of
the CMA by the group;

(m) section 174, where the permitted purpose in question relates
to a function that (by virtue of this section) is being or is to be
carried out on behalf of the CMA by the group;

(n) 10sections 174A to 174D, so far as relating to a notice given
under section 174 on behalf the CMA by the group;

(o) section 179(5)(b), so far as relating to a decision of the group;

(p) Schedule 10, so far as relating to an enforcement undertaking
or enforcement order which the group is considering
15accepting or making, or which the group has accepted or
made, on behalf of the CMA.

(2) Nothing in subsection (1) prevents the CMA Board from carrying out
a function of the CMA under or by virtue of the following provisions
of this Part where the group constituted as mentioned in subsection
20(1) has ceased to exist—

(a) section 160 and Schedule 10, so far as relating to the making
of an order under section 160;

(b) sections 159 to 161 and Schedule 10, so far as relating to the
variation, supersession or release of enforcement
25undertakings or the variation or revocation of enforcement
orders;

(c) section 162(4);

(d) section 164(2)(b);

(e) section 167.

166 (1) 30Section 134 (questions to be decided on market investigation references) is
amended as follows.

(2) In subsections (1), (4), (6) and (7), for “Commission” (in each place where it
occurs) substitute “CMA”.

(3) In subsection (8)(b), for “Commission, the Secretary of State or (as the case
35may be) the OFT” substitute “CMA or (as the case may be) the Secretary of
State”.

167 (1) Section 135 (variation of references) is amended as follows.

(2) In subsection (1), for “OFT” substitute “CMA”.

(3) In subsection (2)—

(a) 40omit “OFT or (as the case may be) the”,

(b) for “Commission” substitute “CMA”, and

(c) after “reference” insert “made by him”.

(4) In subsection (3), for “Commission” substitute “CMA”.

168 (1) Section 136 (investigations and reports on market investigation references)
45is amended as follows.

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(2) In subsections (1) to (3), for “Commission” (in each place where it occurs)
substitute “CMA”.

(3) For subsection (4) substitute—

(4) Where a reference has been made by the appropriate Minister under
5section 132 the CMA shall, at the same time as the report under this
section is published, give it to the appropriate Minister.

(4) In subsection (5)—

(a) for “OFT” substitute “CMA”, and

(b) for “Commission” substitute “CMA”.

(5) 10Omit subsection (6).

169 In section 137 (time-limits for market investigation reports), in subsections
(1), (5) and (6), for “Commission” (in each place where it occurs) substitute
“CMA”.

170 In section 138 (duty to remedy adverse effects), in subsections (1) to (6), for
15“Commission” (in each place where it occurs) substitute “CMA”.

171 In section 139 (public interest intervention by the Secretary of State), in
subsection (2), for “OFT” (in each place where it occurs) substitute “CMA”.

172 In section 140 (intervention notices under section 139(1)), in subsection (5),
for “Commission” (in each place where it occurs) substitute “CMA”.

173 20In section 141 (questions to be decided), in subsections (2) and (3) to (6), for
“Commission” (in each place where it occurs) substitute “CMA”.

174 (1) Section 142 (investigations and reports) is amended as follows.

(2) In subsections (2) and (3), for “Commission” (in each place where it occurs)
substitute “CMA”.

(3) 25In the heading, for “Commission” substitute “CMA”.

175 In section 143 (publication etc. of reports), in subsections (1), (3) and (4), for
“Commission” (in each place where it occurs) substitute “CMA”.

176 In section 144 (time-limits for investigations and reports: Part 4), in
subsections (1), (4) and (5), for “Commission” (in each place where it occurs)
30substitute “CMA”.

177 In section 145 (restrictions where public interest considerations not
finalised), in subsections (1) to (5), for “Commission” (in each place where it
occurs) substitute “CMA”.

178 In section 146 (decision of Secretary of State), in subsections (2) to (4), for
35“Commission” (in each place where it occurs) substitute “CMA”.

179 In section 147 (remedial action by Secretary of State), in subsections (3) and
(4), for “Commission” (in each place where it occurs) substitute “CMA”.

180 (1) Section 148 (reversion of the matter) is amended as follows.

(2) In subsections (1), (2), (6), (7) and (9), for “Commission” (in each place where
40it occurs) substitute “CMA”.

(3) In subsection (10), for “Commission’s” substitute “CMA’s”.

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181 In section 149 (intervention notices under section 139(2), in subsections (1)
and (5), for “OFT” (in each place where it occurs) substitute “CMA”.

182 (1) Section 150 (power of veto of Secretary of State) is amended as follows.

(2) In subsections (1) and (3), for “OFT” (in each place where it occurs) substitute
5“CMA”.

(3) In subsection (4), for “OFT’s” substitute “CMA’s”.

183 (1) Section 151 (further interaction of intervention notices with general
procedure) is amended as follows.

(2) In subsection (3), for “Commission” (in each place where it occurs) substitute
10“CMA”.

(3) In subsection (4), for “Commission” (in the first place where it occurs)
substitute “CMA”.

(4) In subsection (5), for “Commission” (in each place where it occurs) substitute
“CMA”.

184 (1) 15Section 152 (certain duties in relation to providing information) is amended
as follows.

(2) In subsection (1), for “OFT” substitute “CMA”.

(3) In subsection (3)—

(a) for “OFT and the Commission” substitute “CMA”, and

(b) 20for “OFT or (as the case may be) the Commission” substitute “CMA”.

(4) In the heading, for “OFT and Commission” substitute “CMA”.

185 In section 153 (specified considerations for purposes of Part 4), in
subsection (4)—

(a) for “OFT” substitute “CMA”,

(b) 25for “by the Secretary of State,” substitute “by the Secretary of State
or”, and

(c) omit “or by the Commission”.

186 In section 154 (undertakings in lieu of market investigation references), in
subsections (1) to (7), for “OFT” (in each place where it occurs) substitute
30“CMA”.

187 In section 155 (undertakings in lieu: procedural requirements), in
subsections (1) to (4) and (6) to (9), for “OFT” (in each place where it occurs)
substitute “CMA”.

188 In section 156 (effect of undertakings under section 154), in subsections (1)
35and (2), for “OFT” (in each place where it occurs) substitute “CMA”.

189 In section 159 (final undertakings: Part 4), in subsections (1), (5) and (6) for
“Commission” (in each place where it occurs) substitute “CMA”.

190 (1) Section 160 (order-making power where final undertakings not fulfilled:
Part 4) is amended as follows.

(2) 40In subsection (1)(b), for “the relevant authority or the OFT” substitute “a
relevant person”.

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(3) After subsection (1) insert—

(1A) In subsection (1), a “relevant person” means—

(a) in a case where the relevant authority is the CMA, the CMA;

(b) in a case where the relevant authority is the Secretary of State,
5the Secretary of State or the CMA.

(4) In subsection (6), for the words from the beginning to “OFT” substitute “The
Secretary of State shall not vary or revoke an order made by him under this
section unless the CMA”.

(5) In subsection (7), in paragraph (a), for “Commission” (in each place where it
10occurs) substitute “CMA”.

191 (1) Section 161 (final orders: Part 4) is amended as follows.

(2) In subsection (1), for “Commission” substitute “CMA”.

(3) In subsection (5), for the words from the beginning to “OFT” substitute “The
Secretary of State shall not vary or revoke an order made by him under this
15section unless the CMA”.

192 For the italic cross-heading before section 162 substitute “Undertakings and
orders: monitoring, consultation and advice”.

193 (1) Section 162 (duty to monitor undertakings and orders: Part 4) is amended as
follows.

(2) 20In subsections (1) and (2), for “OFT” (in each place where it occurs) substitute
“CMA”.

(3) In subsection (3)—

(a) in the words before paragraph (a)—

(i) for “OFT” substitute “CMA”, and

(ii) 25 omit “the Commission or (as the case may be)”,

(b) in paragraph (a)—

(i) omit “the Commission or (as the case may be)”, and

(ii) omit “it (or as the case may be)”,

(c) in paragraphs (b) to (d), omit “the Commission or (as the case may
30be)” (in each place where it occurs), and

(d) in paragraph (e), for “167(6) to (8)” substitute “167(6) and (7)”.

(4) In subsection (4)—

(a) in the words before paragraph (a), for “OFT” substitute “CMA”, and

(b) after paragraph (b) (but before the “or” following it) insert—

(ba) 35any possible variation or release by it of an
enforcement undertaking accepted by it;

(bb) any possible new enforcement undertaking to be
accepted by it so as to supersede another enforcement
undertaking given to it;

(bc) 40any possible variation or revocation by it of an
enforcement order made by it;

(bd) any possible enforcement undertaking to be accepted
by it instead of an enforcement order or any possible
enforcement order to be made by it instead of an
45enforcement undertaking;.

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(5) In subsections (5) and (6), for “OFT” (in each place where it occurs) substitute
“CMA”.

(6) In subsection (7)—

(a) in the words before paragraph (a), for “OFT” substitute “CMA”,

(b) 5omit paragraph (a), and

(c) in paragraph (b), for “the report” substitute “any report prepared by
it under subsection (6)”.

(7) In the heading, for “OFT” substitute “CMA”.

194 (1) Section 163 (further role in relation to undertakings and orders: Part 4) is
10amended as follows.

(2) In subsection (1)—

(a) omit “the Commission or”, and

(b) omit “(in this section “the relevant authority”)”.

(3) In subsection (2)—

(a) 15for “relevant authority” (in each place where it occurs) substitute
“Secretary of State”, and

(b) for “OFT” substitute “CMA”.

(4) In subsection (3)—

(a) for “relevant authority” (in each place where it occurs) substitute
20“Secretary of State”,

(b) for “OFT” substitute “CMA”, and

(c) for “OFT’s” substitute “CMA’s”.

(5) In subsection (4)—

(a) for “OFT” substitute “CMA”, and

(b) 25for “relevant authority” substitute “Secretary of State”.

(6) In subsection (5)—

(a) for “relevant authority” (in each place where it occurs) substitute
“Secretary of State”, and

(b) omit “itself”.

(7) 30In subsection (6)—

(a) for “relevant authority” substitute “Secretary of State”, and

(b) for “OFT” substitute “CMA”.

(8) For the heading substitute “Role of CMA in relation to undertakings and
orders in public interest cases: Part 4”.

195 (1) 35Section 166 (register of undertakings and orders: Part 4) is amended as
follows.

(2) In subsections (1) and (2), for “OFT” (in each place where it occurs) substitute
“CMA”.

(3) In subsection (3)—

(a) 40in the words before paragraph (a), for “OFT” substitute “CMA”,

(b) in paragraph (a), omit “(whether by the Commission, the Secretary
of State or a relevant sectoral regulator)”, and

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(c) in paragraph (b), omit “(whether by the Commission, the Secretary
of State or a relevant sectoral regulator)”.

(4) In subsection (4), for “OFT” substitute “CMA”.

(5) In subsection (5)—

(a) 5omit “Commission, the”, and

(b) for “OFT” substitute “CMA”.

(6) In subsections (6) and (7), for “OFT” (in each place where it occurs) substitute
“CMA”.

196 (1) Section 167 (rights to enforce undertakings and orders under this Part) is
10amended as follows.

(2) In subsection (6), for “OFT” substitute “CMA”.

(3) In subsection (7)—

(a) after “accepted” insert “by the Secretary of State”,

(b) after “an order” insert “made by the Secretary of State”, and

(c) 15for “relevant authority” substitute “Secretary of State”.

(4) Omit subsection (8).

(5) In subsection (9), for “(6) to (8)” substitute “(6) and (7)”.

197 In section 168 (regulated markets), in subsections (1), (2), (6) and (7), for
“Commission” (in each place where it occurs) substitute “CMA”.

198 20In section 169 (certain duties of relevant authorities to consult: Part 4), in
subsection (6)—

(a) in the definition of “relevant authority”, for “OFT, the appropriate
Minister or the Commission” substitute “CMA, the appropriate
Minister”,

(b) 25in the definition of “relevant decision”, in paragraph (a), in the
opening words, for “OFT” (in each place where it occurs) substitute
“CMA”,

(c) also in that paragraph of that definition, after sub-paragraph (ii)
insert—

(iii) 30on the questions mentioned in section 134, 141
or 141A; and, and

(d) also in that definition, omit paragraph (c) and the word “and”
preceding it.

199 (1) Section 170 (general information duties) is amended as follows.

(2) 35Omit subsections (1) and (2).

(3) In subsection (3)—

(a) in the words before paragraph (a), for “OFT and the Commission”
substitute “CMA”,

(b) in paragraph (a), for “their possession” substitute “its possession”,
40and

(c) in paragraph (b), for “OFT (or as the case may be) the Commission”
substitute “CMA”.

(4) In subsection (4), for “OFT” (in each place where it occurs) substitute
“CMA”.

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(5) In subsection (5), omit the words from the beginning to “and the Secretary
of State” and insert “The Secretary of State”.

200 (1) Section 171 (advice and information: Part 4) is amended as follows.

(2) In subsection (1)—

(a) 5omit “As soon as reasonably practicable after the passing of this
Act,”,

(b) for “the OFT” substitute “The CMA”, and

(c) for “the making of references by it under section 131” substitute

(a) the making and consideration by it of market
10investigation references, and

(b) the way in which relevant customer benefits may
affect the taking of enforcement action in relation to
such references.

(3) In subsection (2), for “OFT” substitute “CMA”.

(4) 15Omit subsections (3) and (4).

(5) In subsection (5)(b), for “OFT or (as the case may be) the Commission”
substitute “CMA”.

(6) In subsection (6)—

(a) omit “or (3)”, and

(b) 20for “OFT or (as the case may be) the Commission” substitute “CMA”.

(7) In subsection (7)—

(a) omit “or (3)”, and

(b) for “OFT or (as the case may be) the Commission” substitute “CMA”.

(8) In subsection (8)—

(a) 25for “OFT or the Commission” substitute “CMA”, and

(b) for “OFT or (as the case may be) the Commission” substitute “CMA”.

(9) In subsection (9), for “OFT shall consult the Commission and such other
persons” substitute “CMA shall consult such persons”.

(10) Omit subsection (10).

201 (1) 30Section 172 (further publicity requirements: Part 4) is amended as follows.

(2) In subsection (1), for “OFT” substitute “CMA”.

(3) In subsection (2), for “Commission shall” substitute “CMA shall also”.

(4) In subsection (10), for “Commission’s” substitute “CMA’s”.

202 In section 173 (defamation)—

(a) 35for “OFT” substitute “CMA”,

(b) for “by the Secretary of State,” substitute “by the Secretary of State
or”, and

(c) omit “or by the Commission”.

203 In section 174 (investigatory powers), in subsections (3) to (5), for “OFT” (in
40each place where it occurs) substitute “CMA”.

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204 In section 177 (excisions from reports: Part 4), in subsections (1), (4) and (5),
for “Commission” (in each place where it occurs) substitute “CMA”.

205 (1) Section 178 (minority reports: Part 4) is amended as follows.

(2) In subsection (1)—

(a) 5omit “in pursuance of paragraph 15 of Schedule 7 to the Competition
Act 1998 (c. 41)1998 (c. 41)”, and

(b) for “Commission” (in each place where it occurs) substitute “CMA”.

(3) In the heading, for “Commission” substitute “CMA”.

206 In section 179 (review of decisions under Part 4), in subsection (1)—

(a) 10for “OFT” substitute “CMA”, and

(b) for “, the Secretary of State or the Commission” substitute “or the
Secretary of State”.

207 In section 183 (interpretation of Part 4), in subsection (3), for “Commission”
(in each place where it occurs) substitute “CMA”.

208 (1) 15Section 184 (index of defined expressions: Part 4) is amended as follows.

(2) At the appropriate place in the table insert—

The CMA Section 273

(3) Omit the entries in the table for “The Commission” and “The OFT”.

(4) In the first column of the entry in the table for “Reports of the Commission”,
20for “Commission” substitute “CMA”.

Part 6

209 In section 190 (cartel offence: prosecution), in subsections (2)(b) and (4), for
OFT” substitute “CMA”.

210 In section 192 (investigation of cartel offences), in subsections (1) and (2), for
25OFT” (in each place where it occurs) substitute “CMA”.

211 In section 193 (powers when conducting an investigation), in subsections (1)
to (4), for “OFT” (in each place where it occurs) substitute “CMA”.

212 In section 194 (power to enter premises under a warrant), in subsections (1)
and (2), for “OFT” (in each place where it occurs) substitute “CMA”.

213 30In section 195 (exercise of powers by authorised person), in subsection (1),
for “OFT” (in both places where it occurs) substitute “CMA”.

214 In section 196 (privileged information etc), in subsection (2)(b), for “OFT
substitute “CMA”.

215 In section 201 (offences), in subsection (4)(a), for “OFT” substitute “CMA”.

35Part 11

216 (1) Section 273 (interpretation) is amended as follows.

(2) For the definition of “the Commission” substitute—

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  • “the CMA” means the Competition and Markets Authority;.

(3) Omit the definition of “the OFT”.

Part 3 Abolition of the Competition Commission

5Amendments of the 1998 Act

217 The 1998 Act is amended as follows.

218 In the heading of Chapter 4 of Part 1, omit “The Competition Commission
and”.

219 Omit section 45 (establishment of Competition Commission) and the cross
10heading preceding it.

220 In section 59 (interpretation of Part 1), in subsection (1), in the definition of
“the Commission”, omit “(except in relation to the Competition
Commission)”.

221 Omit Schedule 7 (Competition Commission).

222 15Omit Schedule 7A (Competition Commission: procedural rules for mergers
and markets refinances).

Amendments of the 2002 Act

223 The 2002 Act is amended as follows.

224 Omit sections 185 to 187 (the Competition Commission).

225 20In Schedule 3 (the Competition Service), omit Part 2 (transfers of property
etc between the Competition Commission and the Competition Service).

226 Omit Schedule 11 (the Competition Commission).

227 Omit Schedule 12 (Competition Commission: certain procedural rules).

Part 4 25Abolition of the Office of Fair Trading

228 Omit sections 1 to 4 of, and Schedule 1 to, the 2002 Act (which make
provision about the establishment of the Office of Fair Trading), and the
italic cross-heading preceding section 1.

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Section 19(4)

SCHEDULE 6 Regulatory appeals etc: minor and consequential amendments

Part 1 Amendments to Acts

5Competition Act 1980 (c. 21)1980 (c. 21)

1 The Competition Act 1980 is amended as follows.

2 (1) Section 11 (reference of public bodies and certain other persons to the
Commission) is amended as follows.

(2) In subsections (1), (5), (6), (8) and (10), for “Commission” (in each place
10where it occurs) substitute “CMA” .

(3) After subsection (10) insert—

(10A) The functions of the CMA with respect to a reference under this
section (including functions under sections 109 to 115 of the
Enterprise Act 2002, as applied by section 11B) are to be carried out
15on behalf of the CMA by a group constituted for the purpose by the
chair of the CMA under Schedule 4 to the Enterprise and Regulatory
Reform Act 2012.

(4) In the heading, for “Commission” substitute “CMA”.

3 In section 11A (references under section 11: time-limits), in subsections (2)
20and (3), for “Commission” (in each place where it occurs) substitute “CMA”.

4 (1) Section 11C (references under section 11: further supplementary provisions)
is amended as follows.

(2) In subsection (1), for the words from “the words” to the end, substitute

(a) the words “, OFCOM or the Secretary of State” were omitted,
25and

(b) for the words “their functions” there were substituted “its
functions”.

(3) In subsection (3)—

(a) for “Commission” substitute “CMA”, and

(b) 30for the words from “in connection with” to the end, substitute “by the
chair of the CMA for the purpose of carrying out the functions of the
CMA with respect to the reference”.

5 In section 12 (orders following report under section 11), in subsections (1) to
(3) and (5), for “Commission” (in each place where it occurs) substitute
35“CMA”.

6 In section 16 (general provisions as to reports), in subsection (2), for
“Commission” substitute “CMA”.

7 In section 17 (laying before Parliament and publication of reports), in
subsection (6), for “Commission” substitute “CMA”.

8 40In section 33 (short title, interpretation, etc), in subsection (2), for ““the
Commission”” substitute ““the CMA””.