The Competition Act 1998 (Public Policy Exclusion) Order 2007

EXPLANATORY NOTE

(This note is not part of the Order)

Agreements between undertakings, decisions by associations of undertakings or concerted practices which may affect trade within the United Kingdom, and have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom are prohibited by Chapter I of the Competition Act 1998. Conduct on the part of one or more undertakings which amounts to an abuse of a dominant position in a market is prohibited by Chapter II of the Competition Act 1998 if it may affect trade within the United Kingdom.

Where there are exceptional and compelling reasons of public policy to do so, the Secretary of State may exclude agreements or descriptions of agreements and conduct which is carried out in particular circumstances from the prohibitions contained in Chapter I and II.

This Order disapplies the prohibitions, contained in Chapters I and II of the Competition Act 1998, in the case of agreements between two or more members of Team CW or between a member of Team CW and any other person and any conduct by a member of Team CW which, in either case, relates to a Complex Weapon or a Supporting Technology. The agreement or conduct is required to have the purpose of protecting the essential security interests of the United Kingdom and maintaining or developing a Core Competence in relation to the whole or part of a Complex Weapon or a Supporting Technology. In addition, the agreement or conduct must 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.

A full regulatory impact assessment of the effect that this Order will have on the costs of business has been prepared by the Ministry of Defence and is available from Defence Equipment and Support, Ministry of Defence, Abbey Wood, Bristol BS34 8JH and can also be found at http://www.mod.uk/DefenceInternet/AboutDefence/CorporatePublications/PolicyStrategy/ RegulatoryImpactAssessmentria.htm.