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"(6A) In section 41E (references to Commission about activities which are not licensable), subsections (7) and (8) shall cease to have effect.
(6B) After section 41E there is inserted—
"41EA REFERENCES UNDER SECTION 41E: TIME LIMITS
(1) Every reference under section 41E above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.
(2) A report of the Competition Commission on a reference under section 41E above shall not have effect (in particular for the purposes of section 41D(5) above) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Authority under subsection (3) below.
(3) The Authority may, if it has received representations on the subject from the Competition Commission and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.
(4) No more than one extension is possible under subsection (3) above in relation to the same reference.
(5) The Authority shall publish an extension under subsection (3) above in such manner as it considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.
41EB References under section 41E: application of Enterprise Act 2002
(1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 41E above as they apply for the purposes of references under that Part—
(a) section 106 (attendance of witnesses and production of documents etc.);
(b) section 107 (enforcement of powers under section 106: general);
(c) section 108 (penalties);
(d) section 109 (penalties: main procedural requirements);
(e) section 110 (payments and interest by instalments);
(f) section 111 (appeals in relation to penalties);
(g) section 112 (recovery of penalties); and
(h) section 113 (statement of policy).
(2) Section 107 shall, in its application by virtue of subsection (1) above, have effect as if—
(a) subsection (2) were omitted; and
(b) in subsection (9) the words from "or section" to "section 64(3))" were omitted.
(3) Section 108(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if—
(a) for the words "published (or, in the case of a report under section 49 or 64, given)" there were substituted "made";
(b) for the words "published (or given)", in both places where they appear, there were substituted "made"; and
(c) the words "by this Part" were omitted.
(4) Section 114 of the Enterprise Act 2002 (false or misleading information) shall apply in relation to functions of the Competition Commission in connection with references under section 41E above as it applies in relation to its functions under Part 3 of that Act but as if, in subsections (1)(a) and (2), the words "the OFT," and "or the Secretary of State" were omitted.
(5) Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 106 to 114 of that Act (including, in particular, provisions relating to offences and the making of

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orders) shall, for the purposes of the application of those sections by virtue of subsection (1) or (4) above, have effect in relation to those sections as applied by virtue of those subsections.
(6) Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of those subsections."
(6C) In section 41F (reports on references under section 41E)—
(a) after subsection (3) there is inserted—
"(3A) For the purposes of section 41D(5), a conclusion contained in a report of the Competition Commission is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted in connection with the reference concerned in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.
(3B) If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 41E as the conclusions of the Competition Commission, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.";
(b) for subsection (4) there is substituted—
"(4) For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the Competition Commission on a reference under section 41E.
(4A) In making any report on a reference under section 41E the Competition Commission must have regard to the following considerations before disclosing any information.
(4B) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the Competition Commission thinks is contrary to the public interest.
(4C) The second consideration is the need to exclude from disclosure (so far as practicable)—
(a) commercial information whose disclosure the Competition Commission thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or
(b) information relating to the private affairs of an individual whose disclosure the Competition Commission thinks might significantly harm the individual's interests.
(4D) The third consideration is the extent to which the disclosure of the information mentioned in subsection (4C)(a) or (b) is necessary for the purposes of the report." Page 352, line 29, after "State" insert ", the Office of Fair Trading"

Page 353, line 9, after "State" insert ", the Office of Fair Trading"

Page 353, line 11, at end insert—

"(4) In section 238 (powers exercisable for protection of the public interest), for subsections (1) and (2) there is substituted—
"(1) Subsection (1A) applies where whatever needs to be remedied, mitigated or prevented by the Secretary of State, the Competition Commission or (as the case may be) the Office of Fair Trading under section 12(5) of the Competition Act 1980 or section 40(2), 54(2), 65(6), 72(2), 80(2), 133(2), 142(2) or 155(2) of, or paragraph 5(2) or 10(2) of Schedule 7 to, the Enterprise Act 2002 (powers to take remedial action following references to the Commission in connection with public bodies and certain other persons, mergers or market investigations etc.) consists of or includes—

21 Oct 2002 : Column 1180

(a) conditions in licences granted by a design right owner restricting the use of the design by the licensee or the right of the design right owner to grant other licences, or
(b) a refusal of a design right owner to grant licences on reasonable terms.
(1A) The powers conferred by Schedule 8 to the Enterprise Act 2002 include power to cancel or modify those conditions and, instead or in addition, to provide that licences in respect of the design right shall be available as of right.
(2) The references to anything permitted by Schedule 8 to the Enterprise Act 2002 in section 12(5A) of the Competition Act 1980 and in sections 72(4)(a), 80(4)(a), 81(2)(a), 86(1), 155(4)(a), 156(3)(a) and 159(1) of, and paragraphs 5, 10 and 11 of Schedule 7 to, the Act of 2002 shall be construed accordingly.".
(5) In Schedule 2A, in paragraph 17 (powers exercisable in consequence of competition report)—
(a) for sub-paragraphs (1) and (2) there is substituted—
"(1) Sub-paragraph (1A) applies where whatever needs to be remedied, mitigated or prevented by the Secretary of State, the Competition Commission or (as the case may be) the Office of Fair Trading under section 12(5) of the Competition Act 1980 or section 40(2), 54(2), 65(6), 72(2), 80(2), 133(2), 142(2) or 155(2) of, or paragraph 5(2) or 10(2) of Schedule 7 to, the Enterprise Act 2002 (powers to take remedial action following references to the Commission in connection with public bodies and certain other persons, mergers or market investigations etc.) consists of or includes—
(a) conditions in licences granted by the owner of a performer's property rights restricting the use to which a recording may be put by the licensee or the right of the owner to grant other licenses, or
(b) a refusal of an owner of a performer's property rights to grant licences on reasonable terms.
(1A) The powers conferred by Schedule 8 to the Enterprise Act 2002 include power to cancel or modify those conditions and, instead or in addition, to provide that licences in respect of the performer's property rights shall be available as of right.
(2) The references to anything permitted by Schedule 8 to the Enterprise Act 2002 in section 12(5A) of the Competition Act 1980 and in sections 72(4)(a), 80(4)(a), 81(2)(a), 86(1), 155(4)(a), 156(3)(a) and 159(1) of, and paragraphs 5, 10 and 11 of Schedule 7 to, the Act of 2002 shall be construed accordingly.";
(b) in sub-paragraph (3)—
(i) for "A Minister" there is substituted "The Secretary of State, the Competition Commission or (as the case may be) the Office of Fair Trading";
(ii) after "he" there is inserted "or it"." Page 353, line 23, at end insert—

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