Part X Rules and Guidance

Chapter III Competition Scrutiny

163 Role of the Treasury.

1

This section applies if the Competition Commission makes a report under section 162(2) which states its conclusion that there is a significantly adverse effect on competition.

2

If the Commission’s conclusion, as stated in the report, is that the adverse effect on competition is not justified, the Treasury must give a direction to the Authority requiring it to take such action as may be specified in the direction.

3

But subsection (2) does not apply if the Treasury consider—

a

that, as a result of action taken by the Authority in response to the Commission’s report, it is unnecessary for them to give a direction; or

b

that the exceptional circumstances of the case make it inappropriate or unnecessary for them to do so.

4

In considering the action to be specified in a direction under subsection (2), the Treasury must have regard to any conclusion of the Commission included in the report because of section 162(5)(b).

5

Subsection (6) applies if—

a

the Commission’s conclusion, as stated in its report, is that the adverse effect on competition is justified; but

b

the Treasury consider that the exceptional circumstances of the case require them to act.

6

The Treasury may give a direction to the Authority requiring it to take such action—

a

as they consider to be necessary in the light of the exceptional circumstances of the case; and

b

as may be specified in the direction.

7

The Authority may not be required as a result of this section to take any action—

a

that it would not have power to take in the absence of a direction under this section; or

b

that would otherwise be incompatible with any of the functions conferred, or obligations imposed, on it by or under this Act.

8

Subsection (9) applies if the Treasury are considering—

a

whether subsection (2) applies and, if so, what action is to be specified in a direction under that subsection; or

b

whether to give a direction under subsection (6).

9

The Treasury must—

a

do what they consider appropriate to allow the Authority, and any other person appearing to the Treasury to be affected, an opportunity to make representations; and

b

have regard to any such representations.

10

If, in reliance on subsection (3)(a) or (b), the Treasury decline to act under subsection (2), they must make a statement to that effect, giving their reasons.

11

If the Treasury give a direction under this section they must make a statement giving—

a

details of the direction; and

b

if the direction is given under subsection (6), their reasons for giving it.

12

The Treasury must—

a

publish any statement made under this section in the way appearing to them best calculated to bring it to the attention of the public; and

b

lay a copy of it before Parliament.