Enterprise and Regulatory Reform Bill

Session 2012 - 13
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Enterprise and Regulatory Reform Bill

Enterprise and Regulatory Reform Bill
Schedule 4 — The Competition and Markets Authority
Part 4 — Interpretation and transitional and transitory provision
118

Members of the Competition Commission
61    (1)
This paragraph applies—
(a)
in relation to any appointments under paragraph 1(1)(b) to the CMA
panel that are made before the abolition of the Competition
Commission under section 26, to any person who is a panel member
5
of the Competition Commission and whose term of office as such is
not due to expire before the abolition of the Competition
Commission under that section;
(b)
in relation to any other appointment under paragraph 1(1)(b) to the
CMA panel, to a person who was a panel member of the Competition
10
Commission immediately prior to its abolition under section 26.
      (2)
A person to whom this paragraph applies may be appointed under
paragraph 1(1)(b) as a member of the CMA panel.
      (3)
But the terms of the person’s appointment as a member of the CMA panel
must not be such that the sum of the period of his or her office as a member
15
of the CMA panel, and of the period of his or her office as a panel member
of the Competition Commission (excluding any period when he or she also
holds office as a member of the CMA panel), exceeds eight years.
      (4)
Paragraph 4(1) applies for the purposes of the person’s re-appointment as a
member of the CMA panel as it does for the purposes of the re-appointment
20
of a CMA panel member to whom this paragraph does not apply.
62
Except as provided for by paragraph 61, a person who holds or has held
office as a panel member of the Competition Commission at any time prior
to its abolition may not be appointed under paragraph 1(1)(b) as a member
of the CMA panel.
25
63
References in paragraphs 61 and 62 to a panel member of the Competition
Commission are to a person appointed as a member of the Competition
Commission of a kind mentioned in paragraph 2(3) of Schedule 7 to the
Competition Act 1998.
Financial years of the CMA
30
64    (1)
If the duration of the period beginning with the commencement date and
ending with the next 31 March is six months or more, the first financial year
of the CMA is that period.
      (2)
But if the duration of that period is less than six months, the first financial
year of the CMA is the period beginning with the commencement date, and
35
ending with the 31 March in the year following the next 31 March after the
commencement date.
      (3)
The subsequent financial years of the CMA are each successive period of 12
months.
First annual plan of the CMA
40
65    (1)
The CMA is to publish its first annual plan within the period of three months
beginning with the commencement date.

Enterprise and Regulatory Reform Bill
Schedule 5 — Amendments related to Part 3
Part 1 — Transfer of functions under the 1998 Act to the CMA
119

      (2)
The first annual plan is to relate to the period beginning with the date of
publication of the plan, and ending with the date on which the CMA’s first
financial year ends.
Schedule 5
Section 26(3)

Amendments related to Part 3
5
Part 1
Transfer of functions under the 1998 Act to the CMA
1
The Competition Act 1998 is amended as follows.
2
In section 6 (block exemptions), in subsections (1) and (6), for “OFT” (in each
place where it occurs) substitute “CMA”.
10
3
In section 8 (block exemptions: procedure), in subsections (1) to (3) and (5),
for “OFT” (in each place where it occurs) substitute “CMA”.
4
In section 10 (parallel exemptions), in subsections (5), (7) and (8), for “OFT”
(in each place where it occurs) substitute “CMA”.
5     (1)
Section 25 (power to investigate) is amended as follows.
15
      (2)
In subsections (1) and (8) to (11), for “OFT” (in each place where it occurs)
substitute “CMA”.
      (3)
In the heading, for “OFT” substitute “CMA”.
6
In section 26 (powers when conducting investigations), in subsections (1)
and (5), for “OFT” (in each place where it occurs) substitute “CMA”.
20
7
In section 27 (power to enter business premises without a warrant), in
subsections (1) and (3), for “OFT” (in each place where it occurs) substitute
“CMA”.
8     (1)
Section 28 (power to enter business premises under a warrant) is amended
as follows.
25
      (2)
In subsection (1)(b)(i), for “OFT” substitute “CMA”.
      (3)
In subsection (2)—
(a)
for “OFT” (in each place where it occurs) substitute “CMA”, and
(b)
for “OFT’s” substitute “CMA’s”.
9
In section 28A (power to enter domestic premises under a warrant), in
30
subsections (1)(b)(i) and (2), for “OFT” (in each place where it occurs)
substitute “CMA”.
10
In section 31 (decisions following an investigation), in subsections (1) and
(2), for “OFT” (in each place where it occurs) substitute “CMA”.
11
In section 31A (commitments), in subsections (1) to (4), for “OFT” (in each
35
place where it occurs) substitute “CMA”.
12
In section 31B (effect of commitments under section 31A), in subsections (1)
to (5), for “OFT” (in each place where it occurs) substitute “CMA”.

Enterprise and Regulatory Reform Bill
Schedule 5 — Amendments related to Part 3
Part 1 — Transfer of functions under the 1998 Act to the CMA
120

13
In section 31C (review of commitments), in subsections (1) and (2), for “OFT”
(in each place where it occurs) substitute “CMA”.
14
In section 31D (guidance), in subsections (1) to (3), (5), (6) and (8), for “OFT”
(in each place where it occurs) substitute “CMA”.
15
In section 31E (enforcement of commitments), in subsection (1), for “OFT”
5
(in each place where it occurs) substitute “CMA”.
16
In section 32 (directions in relation to agreements), in subsection (1), for
“OFT” substitute “CMA”.
17
In section 33 (directions in relation to conduct), in subsection (1), for “OFT”
substitute “CMA”.
10
18
In section 34 (enforcement of directions), in subsection (1), for “OFT”
substitute “CMA”.
19
In section 35 (interim measures), in subsections (1) to (4), (8) and (9), for
“OFT” (in each place where it occurs) substitute “CMA”.
20
In section 36 (penalties), in subsections (1) to (5), (8) and (9), for “OFT” (in
15
each place where it occurs) substitute “CMA”.
21
In section 37 (recovery of penalties), in subsection (1), for “OFT” (in each
place where it occurs) substitute “CMA”.
22
In section 38 (the appropriate level of a penalty), in subsections (1) to (3), (5),
(6), (8) and (9), for “OFT” (in each place where it occurs) substitute “CMA”.
20
23
In section 39 (limited immunity in relation to the Chapter 1 prohibition), in
subsections (3) to (5) and (8), for “OFT” (in each place where it occurs)
substitute “CMA”.
24
In section 40 (limited immunity in relation to the Chapter 2 prohibition), in
subsections (3) to (5) and (8), for “OFT” (in each place where it occurs)
25
substitute “CMA”.
25
In section 44 (false or misleading information), in subsections (1) and (2), for
“OFT” (in each place where it occurs) substitute “CMA”.
26
In section 46 (appealable decisions), in subsections (1) to (3), for “OFT” (in
each place where it occurs) substitute “CMA”.
30
27
In section 47 (third party appeals), in subsection (1), for “OFT” (in each place
where it occurs) substitute “CMA”.
28
In section 47A (monetary claims before Tribunal), in subsections (6) and (7),
for “OFT” (in each place where it occurs) substitute “CMA”.
29
In section 50 (vertical agreements and land agreements), in subsection (3),
35
for “OFT” substitute “CMA”.
30
In the cross-heading preceding section 51, for “OFT’s” substitute “CMA’s”.
31    (1)
Section 51 (rules) is amended as follows.
      (2)
In subsection (1), for “OFT” substitute “CMA”.
      (3)
In subsection (2), for “OFT’s” substitute “CMA’s”.
40

Enterprise and Regulatory Reform Bill
Schedule 5 — Amendments related to Part 3
Part 1 — Transfer of functions under the 1998 Act to the CMA
121

      (4)
In subsections (3) and (5) to (10), for “OFT” (in each place where it occurs)
substitute “CMA”.
32    (1)
Section 52 (advice and information) is amended as follows.
      (2)
In subsection (1), for the words from the beginning to “the Director”
substitute “The CMA”.
5
      (3)
In subsection (1A), for the words from the beginning to “the OFT” substitute
“The CMA”.
      (4)
In subsections (2) to (6) and (8), for “OFT” (in each place where it occurs)
substitute “CMA”.
33
In section 54 (regulators), in subsections (2), (5) and (7), for “OFT” (in each
10
place where it occurs) substitute “CMA”.
34
In section 57 (defamation), for “OFT” substitute “CMA”.
35
In the cross-heading preceding section 58, for “OFT” substitute “CMA”.
36    (1)
Section 58 (findings of fact) is amended as follows.
      (2)
In subsection (1), for “an OFT’s” substitute “a CMA’s”.
15
      (3)
In subsection (2)—
(a)
for “an OFT’s” substitute “a CMA’s”, and
(b)
for “OFT” (in each place where it occurs) substitute “CMA”.
      (4)
In subsection (3), for “OFT” substitute “CMA”.
      (5)
In the heading, for “OFT” substitute “CMA”.
20
37
In section 58A (findings of infringements), in subsections (3) and (4), for
“OFT” (in each place where it occurs) substitute “CMA”.
38    (1)
Section 59 (interpretation of Part 1) is amended as follows.
      (2)
In subsection (1)—
(a)
after the definition of “the Chapter II prohibition” insert—
25
““the CMA” means the Competition and Markets
Authority;”, and
(b)
omit the definition of “the OFT”.
      (3)
In subsection (4), for “OFT” substitute “CMA”.
39
In section 60 (principles to be applied in determining questions), in
30
subsection (4), for “OFT” (in each place where it occurs) substitute “CMA”.
40
In section 61 (interpretation of Part 2), in subsection (1)—
(a)
after the definition of “books and records” insert—
““the CMA” means the Competition and Markets
Authority;”, and
35
(b)
omit the definition of “the OFT”.
41
In section 62 (power to enter business premises under a warrant: Article 20
inspections), in subsections (5) and (10), for “OFT” (in each place where it
occurs) substitute “CMA”.

Enterprise and Regulatory Reform Bill
Schedule 5 — Amendments related to Part 3
Part 1 — Transfer of functions under the 1998 Act to the CMA
122

42
In section 62A (power to enter non-business premises under a warrant:
Article 21 inspections), in subsections (3) to (5), and (12), for “OFT” (in each
place where it occurs) substitute “CMA”.
43
In section 62B (powers when conducting Article 22(2) inspection), in
subsections (1) and (2), for “OFT” (in each place where it occurs) substitute
5
“CMA”.
44
In section 63 (power to enter business premises under a warrant: Article
22(2) inspections), in subsections (1)(a), (2) to (5) and (10), for “OFT” (in each
place where it occurs) substitute “CMA”.
45    (1)
Section 65C (interpretation of Part 2A) is amended as follows.
10
      (2)
In subsection (1), in the definition of “Article 22(1) investigation”, for “OFT”
substitute “CMA”.
      (3)
In subsection (2)—
(a)
after the entry for “Article 82” insert—
““the CMA”;”, and
15
(b)
omit the entry for “the OFT”.
      (4)
In subsection (4), for “OFT” substitute “CMA”.
46
In section 65D (power to conduct an Article 22(1) investigation), in
subsection (1), for “OFT” substitute “CMA”.
47
In section 65E (powers when conducting Article 22(1) investigations), in
20
subsections (1) and (5), for “OFT” (in each place where it occurs) substitute
“CMA”.
48
In section 65F (power to enter business premises without a warrant), in
subsections (1) and (3), for “OFT” (in each place where it occurs) substitute
“CMA”.
25
49
In section 65G (power to enter business premises under a warrant), in
subsections (1)(b)(i) and (2), for “OFT” (in each place where it occurs)
substitute “CMA”.
50
In section 65H (power to enter domestic premises under a warrant), in
subsections (1)(b)(i) and (2), for “OFT” (in each place where it occurs)
30
substitute “CMA”.
51
In section 65N (false or misleading information), in subsections (1) and (2),
for “OFT” (in each place where it occurs) substitute “CMA”.
52
In section 75A (rules in relation to Parts 2 and 2A), in subsections (1) to (8),
for “OFT” (in each place where it occurs) substitute “CMA”.
35
53    (1)
Schedule 1 (exclusions: mergers and concentrations) is amended as follows.
      (2)
In paragraph 4, in sub-paragraphs (1) to (5), for “OFT” (in each place where
it occurs) substitute “CMA”.
      (3)
In paragraph 5, for “OFT” (in each place where it occurs) substitute “CMA”.
54
In Schedule 2 (exclusions: other competition scrutiny), in Part 3, in
40
paragraph 5(3)(a), for “Director” substitute “CMA”.
55    (1)
Schedule 3 (general exclusions) is amended as follows.

Enterprise and Regulatory Reform Bill
Schedule 5 — Amendments related to Part 3
Part 1 — Transfer of functions under the 1998 Act to the CMA
123

      (2)
In paragraph 9, in sub-paragraphs (3) to (7), for “OFT” (in each place where
it occurs) substitute “CMA”.
56    (1)
Schedule 6A (commitments) is amended as follows.
      (2)
In paragraph 1, for “OFT” substitute “CMA”.
      (3)
In paragraph 2—
5
(a)
in sub-paragraph (1), for “OFT” substitute “CMA”,
(b)
in sub-paragraph (2)—
(i)
for “OFT” (in each place where it occurs) substitute “CMA”,
and
(ii)
for “OFT’s” substitute “CMA’s”.
10
      (4)
In paragraph 3, in sub-paragraph (1), for “OFT” substitute “CMA”.
      (5)
In paragraph 4, for “OFT” (in each place where it occurs) substitute “CMA”.
      (6)
In paragraph 5, for “OFT” substitute “CMA”.
      (7)
In paragraph 6, for “OFT” substitute “CMA”.
      (8)
In paragraph 7, for “OFT” (in each place where it occurs) substitute “CMA”.
15
      (9)
In paragraph 8, for “OFT” (in each place where it occurs) substitute “CMA”.
     (10)
In paragraph 10, for “OFT” substitute “CMA”.
     (11)
In paragraph 11, in sub-paragraph (1), for “OFT” substitute “CMA”.
     (12)
In paragraph 12, for “OFT” substitute “CMA”.
     (13)
In paragraph 13, for “OFT” substitute “CMA”.
20
     (14)
In paragraph 14, for “OFT” (in each place where it occurs) substitute “CMA”.
57    (1)
Schedule 8 (appeals) is amended as follows.
      (2)
In paragraph 2, in sub-paragraph (2), for “OFT’s” substitute “CMA’s”.
      (3)
In paragraph 3, in sub-paragraphs (2) and (3), for “OFT” (in each place where
it occurs) substitute “CMA”.
25
      (4)
In paragraph 3A, in sub-paragraph (3), for “OFT” substitute “CMA”.
58    (1)
Schedule 9 (rules under section 51) is amended as follows.
      (2)
In the heading, for “OFT’s” substitute “CMA’s”.
      (3)
In paragraph 1, for “OFT” substitute “CMA”.
      (4)
In paragraph 5, in sub-paragraphs (1) and (2), for “OFT” (in each place where
30
it occurs) substitute “CMA”.
      (5)
In paragraph 8, for “OFT” (in each place where it occurs) substitute “CMA”.
      (6)
In paragraph 9, for “OFT” (in each place where it occurs) substitute “CMA”.
      (7)
In paragraph 11, for “OFT” substitute “CMA”.
      (8)
In paragraph 12, in sub-paragraph (1)—
35
(a)
for “OFT” substitute “CMA”, and
(b)
for “OFT’s” substitute “CMA’s”.

Enterprise and Regulatory Reform Bill
Schedule 5 — Amendments related to Part 3
Part 2 — Transfer of functions under the 2002 Act to the CMA
124

      (9)
In paragraph 13—
(a)
for “OFT” substitute “CMA”, and
(b)
for “OFT’s” substitute “CMA’s”.
     (10)
In paragraph 14, for “OFT” substitute “CMA”.
Part 2
5
Transfer of functions under the 2002 Act to the CMA
59
The Enterprise Act 2002 is amended as follows.
Part 1
60    (1)
Section 5 (acquisition of information etc) is amended as follows.
      (2)
In subsections (1), (2) and (3), for “OFT” (in each place where it occurs)
10
substitute “CMA”.
      (3)
In the italic cross-heading preceding the section for “OFT” substitute “the
CMA”.
61
In section 6 (provision of information etc to the public), in subsections (1)
and (2), for “OFT” (in each place where it occurs) substitute “CMA”.
15
62    (1)
Section 7 (provision of information and advice to Ministers etc) is amended
as follows.
      (2)
In subsection (1), for “OFT” substitute “CMA”.
      (3)
In subsection (2), for “OFT” (in each place where it occurs) substitute
“CMA”.
20
63
Omit section 8 (promoting good consumer practice).
64    (1)
Section 11 (super-complaints) is amended as follows.
      (2)
In subsections (1) and (2), for “OFT” (in each place where it occurs) substitute
“CMA”.
      (3)
In subsection (3), for “OFT’s” substitute “CMA’s”.
25
      (4)
In subsection (7), for “OFT” substitute “CMA”.
65
For the title to Part 1 substitute “General functions of the CMA”.
Part 2
66
In Schedule 4 (Competition Appeal Tribunal: procedure), in Part 2 (Tribunal
rules), in paragraph 22(2), for “OFT” substitute “CMA”.
30
Part 3
67    (1)
Section 22 (duty to make references in relation to completed mergers) is
amended as follows.
      (2)
In subsection (1), for the words before paragraph (a) substitute “The CMA
shall, subject to subsections (2) and (3), make a reference to its chair for the
35