Agreement on the European Economic Area

PROTOCOL 22

concerning the definition of ‘undertaking’ and ‘turnover’ (Article 56)

Article 1 U.K.

For the purposes of the attribution of individual cases pursuant to Article 56 of the Agreement, an ‘undertaking’ shall be any entity carrying out activities of a commercial or economic nature.

Article 2 U.K.

‘Turnover’ within the meaning of Article 56 of the Agreement shall comprise the amounts derived by the undertakings concerned, in the territory covered by the Agreement, in the preceding financial year from the sale of products and the provisin of services falling within the undertaking's ordinary scope of activities after deduction of sales rebates and of value-added tax and other taxes directly related to turnover.

Article 3 U.K.

[F1 In place of turnover the following shall be used:

(a)

for credit institutions and other financial institutions, the sum of the following income items as defined in Council Directive 86/635/EEC, after deduction of value added tax and other taxes directly related to those items, where appropriate:

(i)

interest income and similar income;

(ii)

income from securities:

• income from shares and other variable yield securities,

• income from participating interests,

• income from shares in affiliated undertakings;

(iii)

commissions receivable;

(iv)

net profit on financial operations;

(v)

other operating income.

The turnover of a credit or financial institution in the territory covered by the Agreement shall comprise the income items, as defined above, which are received by the branch or division of that institution established in the territory covered by the Agreement;

(b)

for insurance undertakings, the value of gross premiums written which shall comprise all amounts received and receivable in respect of insurance contracts issued by or on behalf of the insurance undertakings, including also outgoing reinsurance premiums, and after deduction of taxes and parafiscal contributions or levies charged by reference to the amounts of individual premiums or the total volume of premiums; as regards Article 1(2)(b) and (3)(b), (c) and (d) and the final part of Article 1(2) and (3) of Council Regulation (EC) No 139/2004, gross premiums received from residents in the territory covered by the Agreement shall be taken into account.]

Textual Amendments

F1 Substituted by Decision of the EEA Joint Committee No 78/2004 of 8 June 2004 amending Annex XIV (Competition), Protocol 21 (on the implementation of competition rules applicable to undertakings), Protocol 22 (concerning the definition of ‘undertaking’ and ‘turnover’ (Article 56)) and Protocol 24 (on cooperation in the field of control of concentrations) to the EEA Agreement.

Article 4 U.K.

1. In derogation from the definition of the turnover relevant for the application of Article 56 of the Agreement, as contained in Article 2 of this Protocol, the relevant turnover shall be constituted:

(a) as regards agreements, decisions of associations of undertakings and concerted practices related to distribution and supply arrangements between non-competing undertakings, of the amounts derived from the sale of goods or the provision of services which are the subject matter of the agreements, decisions or concerted practices, and from the other goods or services which are considered by users to be equivalent in view of their characteristics, price and intended use;

(b) as regards agreements, decisions of associations of undertakings and concerted practices related to arrangements on transfer of technology between non-competing undertakings, of the amounts derived from the sale of goods or the provision of services which result from the technology which is the subject matter of the agreements, decisions or concerted practices, and of the amounts derived from the sale of those goods or the provision of those services which that technology is designed to improve or replace.

2. However, where at the time of the coming into existence of arrangements as described in paragraph 1(a) and (b) turnover as regards the sale of goods or the provision of services is not in evidence, the general provision as contained in Article 2 shall apply.

Article 5 U.K.

1. Where individual cases concern products falling within the scope of application of Protocol 25, the relevant turnover for the attribution of those cases shall be the turnover achieved in these products.

2. Where individual cases concern products falling within the scope of application of Protocol 25 as well as products or services falling within the scope of application of Articles 53 and 54 of the Agreement, the relevant turnover is determined by taking into account all the products and services as provided for in Article 2.

Textual Amendments

F1 Substituted by Decision of the EEA Joint Committee No 78/2004 of 8 June 2004 amending Annex XIV (Competition), Protocol 21 (on the implementation of competition rules applicable to undertakings), Protocol 22 (concerning the definition of ‘undertaking’ and ‘turnover’ (Article 56)) and Protocol 24 (on cooperation in the field of control of concentrations) to the EEA Agreement.