Exclusion from the Chapter I and II prohibitions

4.—(1) The prohibitions contained in Chapters I and II of the Competition Act 1998 shall not apply to—

(a)any agreement between two or more members of Team CW or between a member of Team CW and any other person; or

(b)any conduct by a member of Team CW

which relates to a Complex Weapon or a Supporting Technology and is made in the circumstances set out in paragraph (2).

(2) The circumstances referred to in paragraph (1), are—

(a)the purpose of the agreement or conduct is to protect the essential security interests of the United Kingdom and to maintain or develop a Core Competence in relation to the whole or part of a Complex Weapon or a Supporting Technology; and

(b)the agreement or conduct does not have as its object or effect the prevention, restriction or distortion of competition within the United Kingdom except in relation to the market for the whole or part of a Complex Weapon or a Supporting Technology.