Enterprise and Regulatory Reform Bill (HL Bill 45)

166 (1) Article 32 (annual and other reports) is amended as follows.

(2) In paragraph (1)(a)(ii), for “Monopolies Commission’s” substitute “CMA’s”.

(3) Omit paragraph (6).

Energy (Northern Ireland) Order 2003 (SI 2003/419 (N.I. 6)SI 2003/419 (N.I. 6))

167 5The Energy (Northern Ireland) Order 2003 is amended as follows.

168 (1) Article 6 (annual and other reports of the Authority) is amended as follows.

(2) In paragraph (1)(b), for “Competition Commission” substitute “Competition
and Markets Authority”.

(3) Omit paragraph (10).

169 10In article 38 (modification of licences), in paragraphs (1) and (2), for “, the
Office of Fair Trading or the Competition Commission” (in each place where
those words occur) substitute “or the Competition and Markets Authority”.

170 (1) Schedule 2 (orders altering licensable activities) is amended as follows.

(2) In paragraph 1, after sub-paragraph (3), insert—

“(4) 15In this Schedule, “the CMA” means the Competition and Markets
Authority.”

(3) In paragraph 2—

(a) in sub-paragraph (4), for “Competition Commission” substitute
“CMA”, and

(b) 20in sub-paragraphs (5) and (6), for “Commission” (in each place where
it occurs) substitute “CMA”.

(4) In the italic cross-heading preceding paragraph 3, for “Competition
Commission” substitute “CMA”.

(5) In paragraph 3—

(a) 25in sub-paragraph (1)—

(i) for “Competition Commission” substitute “CMA”, and

(ii) for “the Commission” substitute “the CMA”,

(b) in sub-paragraphs (2), (3), (5) and (6), for “Commission” (in each
place where it occurs) substitute “CMA”, and

(c) 30after sub-paragraph (6), insert—

“(7) The functions of the CMA with respect to a reference under
this paragraph (including functions under sections 109 to
115 of the Enterprise Act 2002, as applied by paragraph 5)
are to be carried out on behalf of the CMA by a group
35constituted for the purpose by the chair of the CMA under
Schedule 4 to the Enterprise and Regulatory Reform Act
2012.”

(6) In paragraph 4—

(a) in sub-paragraph (2), for “Competition Commission” substitute
40“CMA”, and

(b) in sub-paragraph (3), for “Commission” substitute “CMA”.

(7) In paragraph 5, in sub-paragraph (4)—

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

(b) for the words from “the words” to the end, substitute “for the words
“, OFCOM or the Secretary of State” there were substituted “or
OFCOM”.

(8) 5In paragraph 6—

(a) in sub-paragraph (1), for “Competition Commission” substitute
“CMA”,

(b) in sub-paragraphs (2) and (3), for “Commission” (in each place where
it occurs) substitute “CMA”,

(c) 10in sub-paragraph (4)—

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

(ii) for 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”, and

(d) 15in sub-paragraphs (5) to (9) and (11), for “Commission” (in each place
where it occurs) substitute “CMA”.

Water Services etc (Scotland) Act 2005 (Consequential Provisions and Modifications) Order
2005 (SI 2005/3172SI 2005/3172)

171 The Water Services etc (Scotland) Act 2005 (Consequential Provisions and
20Modifications) Order 2005 is amended as follows.

172 In article 2 (interpretation), in paragraph (1), for the definition of “the
Commission” substitute—

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

173 (1) Article 3 (references) is amended as follows.

(2) 25In paragraphs (1), (5) to (9), and (11) and (12), for “Commission” substitute
“CMA”.

(3) After paragraph (12) insert—

“(13) The functions of the CMA with respect to a reference under this
article are to be carried out on behalf of the CMA by a group
30constituted for the purpose by the chair of the CMA under Schedule
4 to the Enterprise and Regulatory Reform Act 2012 (including
functions relating to the making of modifications following a report
on a reference, and functions under sections 109 to 115 of the
Enterprise Act 2002, as applied by articles 5 and 10).”

(4) 35In the heading, for “Commission” substitute “CMA”.

174 In article 4 (references: time limits), in paragraphs (2) and (3), for
“Commission” (in each place where it occurs) substitute “CMA”.

175 In article 5 (references: powers of investigation), in paragraph (4)(a), for
paragraph (i) substitute—

“(i) 40the words “, OFCOM or the Secretary of State” were
omitted;”.

176 (1) Article 6 (consultation on proposals) is amended as follows.

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

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

177 (1) Article 7 (reports on references) is amended as follows.

(2) In paragraphs (1) to (5), for “Commission” (in each place where it occurs)
substitute “CMA”.

(3) 5In paragraph (6)—

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

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

(4) 10In paragraphs (7) and (8), for “Commission” (in each place where it occurs)
substitute “CMA”.

(5) In paragraph (10), for “Commission’s” substitute “CMA’s”.

(6) In paragraph (12), for “Commission” substitute “CMA”.

178 (1) Article 8 (modifications following report) is amended as follows.

(2) 15In paragraph (1), for “Commission” substitute “CMA”.

(3) In paragraph (2)—

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

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

(4) In paragraph (3), for “Commission’s” substitute “CMA’s”.

(5) 20In paragraph (6), for “Commission” substitute “CMA”.

179 (1) Article 9 (power of veto following report) is amended as follows.

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

(3) In paragraph (4)—

(a) 25for “Commission” (in each place where it occurs) substitute “CMA”,
and

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

(4) In paragraphs (5) to (8), for “Commission” (in each place where it occurs)
30substitute “CMA”.

(5) In the heading, for “Commission’s” substitute “CMA’s”.

180 (1) Article 10 (article 9: supplementary) is amended as follows.

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

(3) 35In paragraph (6)(a), for paragraph (i) substitute—

“(i) the words “, OFCOM or the Secretary of State” were
omitted;”.

Water and Sewerage Services (Northern Ireland) Order 2006 (SI 2006/3336SI 2006/3336 N.I. 21))

181 The Water and Sewerage Services (Northern Ireland) Order 2006 is amended
as follows.

182 In article 2 (interpretation), in paragraph (2)—

(a) 5after the definition of “the Authority”, insert—

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

(b) omit the definition of “the OFT”.

183 (1) Article 19 (determinations under conditions of appointment) is amended as
follows.

(2) 10In paragraph (2)—

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

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

(3) In paragraph (3)—

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

(b) 15for “that Commission” (in each place where it occurs) substitute “the
CMA”.

(4) In paragraph (4)—

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

(b) for “the Commission” (in each place where it occurs) substitute “the
20CMA”.

(5) In paragraph (5), for “Competition Commission” substitute “CMA”.

(6) In paragraph (6)—

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

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

(7) 25After paragraph (6) insert—

“(7) The functions of the CMA with respect to a reference under this
Article are to be carried out on 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 (including
30functions relating to the making of modifications following a report
on a reference, and functions under sections 109 to 115 of the
Enterprise Act, as applied by paragraph (5) read with Article 27).”

184 (1) Article 21 (modification references) is amended as follows.

(2) In paragraph (1)—

(a) 35for “Competition Commission” substitute “CMA”, and

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

(3) In paragraph (2)—

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

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

(4) 40In paragraph (3), for “Competition Commission” substitute “CMA”.

(5) In paragraph (5)—

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

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

(6) In paragraph (6), for “Competition Commission” substitute “CMA”.

(7) After paragraph (6) insert—

“(7) 5The functions of the CMA with respect to a reference under this
Article are to be carried out on 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 (including
functions relating to the making of modifications following a report
10on a reference, and functions under sections 109 to 115 of the
Enterprise Act 2002, as applied by Articles 23 and 27).”

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

185 In article 22 (references under article 21: time limits), in paragraphs (2) and
(3), for “Competition Commission” (in each place where it occurs) substitute
15“CMA”.

186 (1) Article 24 (reports on modification references) is amended as follows.

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

(3) In paragraph (2)—

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

(b) 20for 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 in question”.

(4) In paragraphs (3) to (5), for “Competition Commission” (in each place where
it occurs) substitute “CMA”.

(5) 25In paragraphs (6) and (7), for “Commission” (in each place where it occurs)
substitute “CMA”.

(6) In paragraph (9), for “Competition Commission” substitute “CMA”.

187 In article 25 (modifications following report), in paragraphs (1) and (5), for
“Competition Commission” substitute “CMA”.

188 (1) 30Article 26 (power of veto following report) is amended as follows.

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

(3) In paragraphs (2) to (9), for “Commission” (in each place where it occurs)
substitute “CMA”.

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

189 (1) 35Article 27 (power of veto following report: supplementary) is amended as
follows.

(2) In paragraph (2), for “Competition Commission” substitute “CMA”.

(3) In paragraphs (3), (4), (6) and (8), for “Commission” (in each place where it
occurs) substitute “CMA”.

(4) 40In the heading, for “Commission’s” substitute “CMA’s”.

190 In article 28 (modification by order under other statutory provisions), in
paragraph (1)—

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

(b) for “OFT, the Commission” substitute “CMA”.

191 5In article 57 (restrictions on disclosure of information), in sub-paragraph (7),
for “Competition Commission” substitute “CMA”.

Legal Services (Scotland) Act 2010 (asp 16)2010 (asp 16)

192 The Legal Services (Scotland) Act 2010 is amended as follows.

193 In section 8 (pre-approval consideration), in subsection (1)(b), for “OFT”
10substitute “CMA”.

194 In section 15 (initial considerations), in subsections (1) and (2), for “OFT” (in
each place where it occurs) substitute “CMA”.

195 In section 28 (communicating outside), in subsection (1)(e), for “OFT”
substitute “CMA”.

196 15In section 49 (majority ownership), in subsection (5)(b)(iii), for “OFT”
substitute “CMA”.

197 (1) Section 76 (input) is amended as follows.

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

(3) 20In the heading, for “OFT” substitute “CMA”.

198 In section 92 (certification of bodies), in subsections (4) and (5), for “OFT” (in
each place where it occurs) substitute “CMA”.

199 In section 103 (certification of bodies), in subsections (4) and (5), for “OFT”
(in each place where it occurs) substitute “CMA”.

200 (1) 25Section 113 (regard to input) is amended as follows.

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

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

201 In section 122 (particular rules), in subsection (2), for “OFT” substitute
30“CMA”.

202 In section 125 (citizens advice bodies), in subsection (4)(b), for “OFT”
substitute “CMA”.

203 In section 147 (further modification), in subsection (3)(d), for “OFT”
substitute “CMA”.

204 (1) 35In section 149 (definitions), in subsection (1)—

(a) after the definition of “the 2007 Act” insert—

• ““CMA” means Competition and Markets Authority,”,
  and”

(b) omit the definition of “OFT”.

205 In schedule 2 (directions), in paragraph 4, in sub-paragraph (3), for “OFT” (in
each place where it occurs) substitute “CMA”.

206 In schedule 5 (amendment of authorisation), in paragraph 4, in sub-
paragraph (2)(b)(i), for “OFT” substitute “CMA”.

207 5In schedule 6 (rescission of authorisation), in paragraph 4, in sub-paragraph
(2)(b)(i), for “OFT” substitute “CMA”.

208 In schedule 7 (surrender of authorisation), in paragraph 3, in sub-paragraph
(1)(a)(ii), for “OFT” substitute “CMA”.

209 In schedule 9 (index of expressions used), in the first table, in the column
10headed “Whole Act expressions”—

(a) after the reference to “advocate”, insert a reference to “CMA”;

(b) omit the reference to “OFT”.

Section 24(10)

SCHEDULE 7 Mergers: interim measures

15Interim measures following references under section 22 or 33

1 Part 3 of the 2002 Act (mergers) is amended as follows.

2 (1) Section 80 (interim undertakings) is amended as follows.

(2) In subsection (1), for “Subsections (2) and (3)” substitute “Subsections (2) and
(2A)”.

(3) 20After subsection (2) insert—

“(2A) Where the CMA has reasonable grounds for suspecting that pre-
emptive action has or may have been taken, it may, for the purpose
of restoring the position to what it would have been had the action
not been taken or otherwise for the purpose of mitigating its effects,
25accept from such of the parties concerned as it considers appropriate
undertakings to take such action as it considers appropriate.”

(4) After subsection (2A) insert—

“(2B) A person may, with the consent of the CMA, take action or action of
a particular description where the action would otherwise constitute
30a contravention of an undertaking under this section.”

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

(6) In subsection (5), for “Any other undertaking” substitute “An undertaking”.

(7) Omit subsection (6).

3 (1) Section 81 (interim orders) is amended as follows.

(2) 35In subsection (1) for “Subsections (2) and (3)” substitute “Subsections (2) and
(2A)”.

(3) After subsection (2) insert—

“(2A) Where the CMA has reasonable grounds for suspecting that pre-
emptive action has or may have been taken, it may by order, for the
purpose of restoring the position to what it would have been had the
5action not been taken or otherwise for the purpose of mitigating its
effects—

(a) do anything mentioned in subsection (2)(b) to (d);

(b) impose such other obligations, prohibitions or restrictions as
it considers appropriate for that purpose.”

(4) 10After subsection (2A) insert—

“(2B) A person may, with the consent of the CMA, take action or action of
a particular description where the action would otherwise constitute
a contravention of an order under this section.”

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

(6) 15In subsection (5), for “Any other order” substitute “An order”.

(7) Omit subsection (6).

Interim measures: public interest and special interest cases

4 (1) Schedule 7 (enforcement regime for public interest and special public
interest cases) is amended as follows.

(2) 20Omit paragraph 1 (interim undertakings).

(3) In paragraph 2 (interim orders), after sub-paragraph (2) insert—

“(2A) Sub-paragraph (2B) applies where—

(a) an intervention notice or special intervention notice is in
force, and

(b) 25the Secretary of State or the CMA has reasonable grounds
for suspecting that pre-emptive action has or may have
been taken.

(2B) The Secretary of State or (as the case may be) the CMA may by
order, for the purpose of restoring the position to what it would
30have been had the pre-emptive action not been taken or otherwise
for the purpose of mitigating its effects—

(a) do anything mentioned in sub-paragraph (2)(b) to (d);

(b) impose such other obligations, prohibitions or restrictions
as it considers appropriate for that purpose.”

(4) 35In that paragraph, after sub-paragraph (2B) insert—

“(2C) A person may, with the consent of the Secretary of State or (as the
case may be) the CMA, take action or action of a particular
description where the action would otherwise constitute a
contravention of an order under this paragraph by the Secretary of
40State or (as the case may be) the CMA.”

(5) In that paragraph, in sub-paragraph (4)—

(a) omit “or the OFT”,

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

(c) omit “or (as the case may be) the OFT”.

(6) In that paragraph, in sub-paragraph (8), omit “1 or”.

(7) In that paragraph, in sub-paragraph (10), for the words from “the order” to
the end of the sub-paragraph substitute “—

(a) 5the Secretary of State or (as the case may be) the CMA has
reasonable grounds for suspecting that it is or may be the
case that two or more enterprises have ceased to be distinct
or that arrangements are in progress or in contemplation
which, if carried into effect, will result in two or more
10enterprises ceasing to be distinct; or

(b) the order relates to a special merger situation which has
been, or may have been, created.”

(8) In that paragraph, after sub-paragraph (11) insert—

“(12) In this paragraph “pre-emptive action” means action which might
15prejudice the reference or possible reference concerned under
section 45 or (as the case may be) 62 or impede the taking of any
action under this Part which may be justified by the Secretary of
State’s decisions on the reference.”

Interim measures: duration of interim orders under section 72

5 (1) 20Section 72 (initial enforcement orders: completed mergers) is amended as
follows.

(2) Omit subsection (5).

(3) In subsection (6)—

(a) in the words before paragraph (a), omit “section 81 or”, and

(b) 25in paragraph (a), for the words from “at the end of” to the end of the
paragraph substitute “—

(i) if the CMA accepts an undertaking under
section 80 or makes an order under section 81,
on the acceptance of the undertaking or the
30making of the order, and

(ii) otherwise on the final determination of the
reference concerned;”.

Section 26(2)

SCHEDULE 8 Mergers: time-limits

1 35Part 3 of the 2002 Act (mergers) is amended as follows.

2 In section 22 (duty to make references in relation to completed mergers), in
subsection (3)—

(a) before paragraph (a) insert—

“(za) the period within which the CMA is required by
40section 34ZA to decide whether the duty to make the
reference applies has expired without such a decision
having been made;”, and

(b) in paragraph (a) omit “or 96(3)”.

3 In section 33 (duty to make references in relation to anticipated mergers), in
subsection (3)—

(a) before paragraph (a) insert—

“(za) 5the period within which the CMA is required by
section 34ZA to decide whether the duty to make the
reference applies has expired without such a decision
having been made;”, and

(b) in paragraph (a) omit “or 96(3)”.

4 10After section 34 insert—

“34ZA Time-limits for decisions about references

(1) In carrying out its function of deciding whether to make a reference
under section 22 or 33, the CMA shall, within the initial period—

(a) decide whether the duty to make a reference under the
15section applies (taking account of the power under section
22(2) or (as the case may be) 33(2) and the operation of section
22(3) or (as the case may be) 33(3)); and

(b) inform the persons carrying on the enterprises concerned by
notice of the decision and of the reasons for it.

(2) 20Nothing in this section prevents the CMA from making a reference
under section 22 or 33 in the event that—

(a) it decides that the duty to make a reference does not apply
because it is considering whether to accept undertakings
under section 73; but

(b) 25no such undertakings are offered or accepted.

(3) In this section—

• “the initial period” means (subject to any extension under
  section 34ZB) the period of 40 working days beginning
  with—

  (a)

  30where the CMA is carrying out its function in
  consequence of the giving of a merger notice under
  section 96, the first working day after the day on
  which the CMA gives notice under section 96(2A) to
  the person who gave the merger notice, and

  (b)

  35in any other case, the first working day after the day
  on which the CMA informs the persons carrying on
  the enterprises concerned by notice that it has
  sufficient information to enable it to begin an
  investigation for the purposes of deciding whether to
  40make a reference;

• “working day” means any day which is not—

  (a)

  a Saturday, a Sunday, Good Friday or Christmas Day,
  or

  (b)

  a day which is a bank holiday in England and Wales.

(4) 45For the purposes of paragraph (a) in the definition of “initial period”
in subsection (3), the CMA is carrying out its functions in