Competition Act 1998

Part II U.K. Performance of the Commission’s General Functions

Modifications etc. (not altering text)

C1 Sch. 7 Pt. II applied (with modifications) (1.4.1999) by 1984 c. 12, s. 13(9A) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. IV para. 9(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (1.4.1999) by 1986 c. 44, s. 24(7A) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. IV para. 10(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (1.4.1999) by 1989 c. 29, s. 12(8A) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. IV para. 12(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (1.4.1999) by 1991 c. 56, s. 14(7A) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. IV para. 13(3) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (1.4.1999) by 1993 c. 43, s. 13(8A) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. IV para. 15(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (1.4.1999) by S.I. 1992/231 (N.I. 1), art. 15(8)(9) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. V para. 17(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (1.4.1999) by S.I. 1996/275 (N.I. 2), art. 15(9) (as substituted (1.4.1999) by 1998 c. 41, s. 66(5), Sch. 10 Pt. V para. 18(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II modified (1.4.1999) by 1980 c. 21, s. 11(9A) (as substituted (1.4.1999) by 1998 c. 41, s. 74(1), Sch. 12 para. 4(3) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II modified (1.4.1999) by 1986 c. 31, s. 44(3A) (as substituted (1.4.1999) by 1998 c. 41, s. 74(1), Sch. 12 para. 7(2) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II modified (1.4.1999) by 1990 c. 42, ss. 67, 77, 121, Sch. 7 para. 4(7A) (as substituted (1.4.1999) by 1998 c. 41, s. 74(1), Sch. 12 para. 14(3) (with s. 73); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II modified (1.4.1999) by S.I. 1994/426 (N.I. 1), art. 35(3) (as substituted (1.4.1999) by 1998 c. 41, s. 74(1), Sch. 12 para. 20(2); S.I. 1999/505, art. 2, Sch. 2)

Sch. 7 Pt. II applied (with modifications) (24.11.1999) by S.I. 1999/3088, regs. 7, 8

SCh. 7 Pt. II applied (with modifications) (26.3.2001) by 2000 c. 26, s. 20(1)(2)(c); S.I. 2000/2957, art. 2(3), Sch. 3

Sch. 7 Pt. II applied (with modifications) (26.3.2001) by 2000 c. 26, s. 20(4)(5)(c); S.I. 2000/2957, art. 2(3), Sch. 3

Sch. 7 Pt. II applied (with modifications) (30.11.2000) by 1993 c. 43, Sch. 4A, para. 10(2)(b) (as inserted (30.11.2000) by 2000 c. 38, ss. 231, 275(4), Sch. 24

Sch. 7 Pt. II applied (with modifications) (1.10.2001) by 1989 c. 29, s. 14A(13)(d) (as inserted (1.10.2001) by 2000 c. 27, s. 39 (with s. 104(1)(2)(6)); S.I. 2001/3266, art. 2, Sch. (subject to arts. 3-20))

Sch. 7 Pt. II applied (with modifications) (1.10.2001) by 1989 c. 29, s. 56C(8)(b) (as inserted (1.10.2001) by 2000 c. 27, s. 43 (with s. 104(1)(2)(6)); S.I. 2001/3266, art. 2, Sch. (subject to arts. 3-20))

Sch. 7 Pt. II applied (with modifications) (1.2.2001) by 2000 c. 38, s. 12(10)(c) (with s. 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. I

Sch. 7 Pt. II applied (with modifications) (1.2.2001) by 2000 c. 38, s. 18(2)(e) (with s. 106); S.I. 2001/57, art. 3(1), Sch. 2 Pt. I

Sch. 7 Pt. II applied (with modifications) (1.10.2001) by Gas Act 1986 c. 44, s. 26A(13)(d) (as inserted (1.10.2001) by 2000 c. 27, s. 83(4) (with s. 104(1)(2)(6)); S.I. 2001/3266, art. 2, Sch. (subject to arts. 3-20))

SCh. 7 Pt. II applied (with modifications) (1.10.2001) by Gas Act 1986 c. 44, s. 41E (8)(b) (as inserted (1.10.2001) by 2000 c. 27, s. 88 (with s. 104(1)(2)(6)); S.I. 2001/3266, art. 2, Sch. (subject to arts. 3-20))

Sch. 7 Pt. II applied (with modifications) (1.10.2001) by 1986 c. 44, s. 26A(12)-(14) (as inserted (1.10.2001) by 2000 c. 27, s. 83(4) (with s. 104(1)(2)(6)); S.I. 2001/3266, art. 2, Sch. (subject to arts. 3-20))

C2 Sch. 7 Pt. II restricted (E.W.S.) (5.10.2004) by Energy Act 2004 (c. 20), ss. 174(1), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

Interpretation U.K.

14 U.K. In this Part of this Schedule “group” means a group selected under paragraph 15.

Discharge of certain functions by groups U.K.

15 (1) Except where sub-paragraph (7) [F1 or (8)] gives the Chairman power to act on his own, any general function of the Commission must be performed through a group selected for the purpose by the Chairman. U.K.

(2) The group must consist of at least three persons one of whom may be the Chairman.

(3) In selecting the members of the group, the Chairman must comply with any requirement as to its constitution imposed by any enactment applying to specialist panel members.

(4) If the functions to be performed through the group relate to a newspaper merger reference, the group must, subject to sub-paragraph (5), consist of such reporting panel members as the Chairman may select.

[F2 (5) The Chairman must select one or more newspaper panel members to be members of the group dealing with functions relating to a newspaper merger reference and, if he selects at least three such members, the group may consist entirely of those members.]

(6) Subject to sub-paragraphs (2) to (5), a group must consist of reporting panel members or specialist panel members selected by the Chairman.

(7) While a group is being constituted to perform a particular general function of the Commission, the Chairman may—

(a) take such steps (falling within that general function) as he considers appropriate to facilitate the work of the group when it has been constituted; or

F3 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (8) The Chairman may exercise the power conferred by section 37(1), 48(1) or 64(1) of the Enterprise Act 2002 while a group is being constituted to perform a relevant general function of the Commission or, when it has been so constituted, before it has held its first meeting.]

Textual Amendments

F1 Words in Sch. 7 para. 15(1) inserted (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 10(2); S.I. 2003/1397, art. 2(1), Sch. (with art. 8)

F2 Sch. 7 para. 15(5) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 10(3); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

F3 Sch. 7 para. 15(7)(b) repealed (20.6.2003 for specified purposes, 29.12.2004 in so far as not already in force) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 10(4), Sch. 26; S.I. 2003/1397, art. 2(1), Sch. (with arts. 3(1), 8); S.I. 2004/3233, art. 2, Sch. (with arts. 3-5)

F4 Sch. 7 para. 15(8) inserted (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 10(5); S.I. 2003/1397, art. 2(1), Sch. (with art. 8)

Modifications etc. (not altering text)

C3 Sch. 7 para. 15(8) amended (20.6.2003) by The Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (S.I. 2003/1592), art. 1(1), Sch. 4 para. 15(2)(a)

C4 Sch. 7 para. 15(7) modified (prosp.) by Financial Services and Markets Act 2000 (c. 8), Sch. 14 para. 2B (as inserted (prosp.) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(20)(b))

C5 Sch. 7 para. 15(7) modified (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 40(20)(b); S.I. 2003/1397, art. 2(1), Sch. (with art. 8)

Chairmen of groups U.K.

16 U.K. The Chairman must appoint one of the members of a group to act as the chairman of the group.

Replacement of member of group U.K.

17 (1) If, during the proceedings of a group— U.K.

(a) a member of the group ceases to be a member of the Commission,

(b) the Chairman is satisfied that a member of the group will be unable for a substantial period to perform his duties as a member of the group, or

(c) it appears to the Chairman that because of a particular interest of a member of the group it is inappropriate for him to remain in the group,

the Chairman may appoint a replacement.

(2) The Chairman may also at any time appoint any reporting panel member to be an additional member of a group.

Attendance of other members U.K.

18 (1) At the invitation of the chairman of a group, any reporting panel member who is not a member of the group may attend meetings or otherwise take part in the proceedings of the group. U.K.

(2) But any person attending in response to such an invitation may not—

(a) vote in any proceedings of the group; or

(b) have a statement of his dissent from a conclusion of the group included in a report made by them.

(3) Nothing in sub-paragraph (1) is to be taken to prevent a group, or a member of a group, from consulting any member of the Commission with respect to any matter or question with which the group is concerned.

Procedure U.K.

19 (1) Subject to any special or general directions given by the Secretary of State, each group may determine its own procedure. U.K.

(2) Each group may, in particular, determine its quorum and determine—

(a) the extent, if any, to which persons interested or claiming to be interested in the subject-matter of the reference are allowed—

(i) to be present or to be heard, either by themselves or by their representatives;

(ii) to cross-examine witnesses; or

(iii) otherwise to take part; and

(b) the extent, if any, to which sittings of the group are to be held in public.

(3) In determining its procedure a group must have regard to any guidance issued by the Chairman.

(4) Before issuing any guidance for the purposes of this paragraph the Chairman must consult the members of the Commission.

[F5 (5) This paragraph does not apply to groups for which rules must be made under paragraph 19A.]

Textual Amendments

F5 Sch. 7 para. 19(5) inserted (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 187(2), 279; S.I. 2003/1397, art. 2(1), Sch.

[F6 19A (1) The Chairman must make rules of procedure in relation to merger reference groups, market reference groups and special reference groups. U.K.

(2) Schedule 7A makes further provision about rules made under this paragraph but is not to be taken as restricting the Chairman’s powers under this paragraph.

(3) The Chairman must publish rules made under this paragraph in such manner as he considers appropriate for the purpose of bringing them to the attention of those likely to be affected by them.

(4) The Chairman must consult the members of the Commission and such other persons as he considers appropriate before making rules under this paragraph.

(5) Rules under this paragraph may—

(a) make different provision for different cases or different purposes;

(b) be varied or revoked by subsequent rules made under this paragraph.

(6) Subject to rules made under this paragraph, each merger reference group, market reference group and special reference group may determine its own procedure.

(7) In determining how to proceed in accordance with rules made under this paragraph and in determining its procedure under sub-paragraph (6), a group must have regard to any guidance issued by the Chairman.

(8) Before issuing any guidance for the purposes of this paragraph the Chairman shall consult the members of the Commission and such other persons as he considers appropriate.

(9) In this paragraph and in Schedule 7A—

• “market reference group” means any group constituted in connection with a reference under section 131 or 132 of the Enterprise Act 2002 (including that section as it has effect by virtue of another enactment);

• “merger reference group” means any group constituted in connection with a reference under F7 ... section 32 of the Water Industry Act 1991 (c. 56) or section 22, 33, 45 or 62 of the Enterprise Act 2002; and

• “special reference group” means any group constituted in connection with a reference or (in the case of the Financial Services and Markets Act 2000 (c. 8)) an investigation under—

  (a)

  section 11 of the Competition Act 1980 (c. 21);

  (b)

  F7 ...

  (c)

  section 43 of the Airports Act 1986 (c. 31);

  (d)

  section 24 or 41E of the Gas Act 1986 (c. 44);

  (e)

  section 12 or 56C of the Electricity Act 1989 (c. 29);

  (f)

  F7 ...

  (g)

  section 12 or 14 of the Water Industry Act 1991 (c. 56);

  (h)

  article 15 of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1));

  (i)

  section 13 of, or Schedule 4A to, the Railways Act 1993 (c. 43);

  (j)

  article 34 of the Airports (Northern Ireland) Order 1994 (S.I. 1994/426 (N.I. 1));

  (k)

  article 15 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2));

  (l)

  section 15 of the Postal Services Act 2000 (c. 26);

  (m)

  section 162 or 306 of the Financial Services and Markets Act 2000 (c. 8); F7 ...

  (n)

  section 12 of the Transport Act 2000 (c. 38). [F8 or]

  (o)

  section 193 of the Communications Act 2003.]

Textual Amendments

F6 Sch. 7 para. 19A inserted (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 187(3), 279; S.I. 2003/1397, art. 2(1), Sch.

F7 Words in Sch. 7 para. 19A(9) repealed (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 19(1) Note 1 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F8 Words in Sch. 7 para. 19A(9) inserted (25.7.2003 for specified purposes) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 153(3) (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3))

Modifications etc. (not altering text)

C6 Sch. 7 para. 19A(9) amended (20.6.2003) by The Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (S.I. 2003/1592), art. 1(1), Sch. 4 para. 15(2)(b)

Effect of exercise of functions by group U.K.

20 (1) Subject to [F9 sub-paragraphs (2) to (9)], anything done by or in relation to a group in, or in connection with, the performance of functions to be performed by the group is to have the same effect as if done by or in relation to the Commission. U.K.

[F10 (2) For the purposes of Part 3 of the Enterprise Act 2002 (mergers) any decision of a group under section 35(1) or 36(1) of that Act (questions to be decided on non-public interest merger references) that there is an anti-competitive outcome is to be treated as a decision under that section that there is not an anti-competitive outcome if the decision is not that of at least two-thirds of the members of the group.

(3) For the purposes of Part 3 of the Act of 2002, if the decision is not that of at least two-thirds of the members of the group—

(a) any decision of a group under section 47 of that Act (questions to be decided on public interest merger references) that a relevant merger situation has been created is to be treated as a decision under that section that no such situation has been created;

(b) any decision of a group under section 47 of that Act that the creation of a relevant merger situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services is to be treated as a decision under that section that the creation of that situation has not resulted, or may be expected not to result, in such a substantial lessening of competition;

(c) any decision of a group under section 47 of that Act that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation is to be treated as a decision under that section that no such arrangements are in progress or in contemplation; and

(d) any decision of a group under section 47 of that Act that the creation of such a situation as is mentioned in paragraph (c) may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services is to be treated as a decision under that section that the creation of that situation may be expected not to result in such a substantial lessening of competition.

(4) For the purposes of Part 3 of the Act of 2002, if the decision is not that of at least two-thirds of the members of the group—

(a) any decision of a group under section 63 of that Act (questions to be decided on special public interest merger references) that a special merger situation has been created is to be treated as a decision under that section that no such situation has been created; and

(b) any decision of a group under section 63 of that Act that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a special merger situation is to be treated as a decision under that section that no such arrangements are in progress or in contemplation.

(5) For the purposes of Part 4 of the Act of 2002 (market investigations), if the decision is not that of at least two-thirds of the members of the group, any decision of a group under section 134 or 141 (questions to be decided on market investigation references) that a feature, or combination of features, of a relevant market prevents, restricts or distorts competition in connection with the supply or acquisition of any goods or services in the United Kingdom or a part of the United Kingdom is to be treated as a decision that the feature or (as the case may be) combination of features does not prevent, restrict or distort such competition.

(6) Accordingly, for the purposes of Part 4 of the Act of 2002, a group is to be treated as having decided under section 134 or 141 that there is no adverse effect on competition if—

(a) one or more than one decision of the group is to be treated as mentioned in sub-paragraph (5); and

(b) there is no other relevant decision of the group.

(7) In sub-paragraph (6) “relevant decision” means a decision which is not to be treated as mentioned in sub-paragraph (5) and which is that a feature, or combination of features, of a relevant market prevents, restricts or distorts competition in connection with the supply or acquisition of any goods or services in the United Kingdom or a part of the United Kingdom.

(8) Expressions used in sub-paragraphs (2) to (7) shall be construed in accordance with Part 3 or (as the case may be) 4 of the Act of 2002.

(9) Sub-paragraph (1) is also subject to specific provision made by or under other enactments about decisions which are not decisions of at least two-thirds of the members of a group.]

Textual Amendments

F9 Words in Sch. 7 para. 20(1) substituted (20.6.2003 for specified purposes, 29.12.2004 in so far as not already in force) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 11(2); S.I. 2003/1397, art. 2(1), Sch. (with arts. 3(1), 8); S.I. 2004/3233, art. 2, Sch. (with arts. 3-5)

F10 Sch. 7 para. 20(2)-(9) substituted for Sch. 7 para. 20(2) (20.6.2003 for specified purposes, 29.12.2004 in so far as not already in force) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 11(3); S.I. 2003/1397, art. 2(1), Sch. (with arts. 3(1), 8); S.I. 2004/3233, art. 2, Sch. (with arts. 3-5)

Modifications etc. (not altering text)

C7 Sch. 7 para. 20(4)(a) amended (20.6.2003) by The Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (S.I. 2003/1592), art. 1(1), Sch. 4 para. 15(2)(e)

C8 Sch. 7 para. 20(4) amended (20.6.2003) by The Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (S.I. 2003/1592), art. 1(1), Sch. 4 para. 15(2)(c)

C9 Sch. 7 para. 20(4)(a)(b) amended (20.6.2003) by The Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (S.I. 2003/1592), art. 1(1), Sch. 4 para. 15(2)(d)

Casting votes U.K.

21 U.K. The chairman of a group is to have a casting vote on any question to be decided by the group.

Newspaper merger references U.K.

22 U.K. [F11 There are to be members of the Commission appointed by the Secretary of State to form a panel of persons available] for selection as members of a group constituted in connection with a newspaper merger reference.

Textual Amendments

F11 Words in Sch. 7 para. 22 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 11 para. 12; S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)