Part I Competition

Chapter III Investigation and Enforcement

Civil sanctions: infringements of the Chapter I or II prohibitions

36F1Penalties.

(1)

On making a decision that an agreement has infringed the Chapter I prohibition F2..., the F3CMA may require an undertaking which is a party to the agreement to pay the F3CMA a penalty in respect of the infringement.

(2)

On making a decision that conduct has infringed the Chapter II prohibition F4..., the F3CMA may require the undertaking concerned to pay the F3CMA a penalty in respect of the infringement.

(3)

The F3CMA may impose a penalty on an undertaking under subsection (1) or (2) only if F5the F3CMA is satisfied that the infringement has been committed intentionally or negligently by the undertaking.

(4)

Subsection (1) is subject to section 39 and does not apply F6in relation to a decision that an agreement has infringed the Chapter I prohibition if the F3CMA is satisfied that the undertaking acted on the reasonable assumption that that section gave it immunity in respect of the agreement.

(5)

Subsection (2) is subject to section 40 and does not apply F7in relation to a decision that conduct has infringed the Chapter II prohibition if the F3CMA is satisfied that the undertaking acted on the reasonable assumption that that section gave it immunity in respect of the conduct.

(6)

Notice of a penalty under this section must—

(a)

be in writing; and

(b)

specify the date before which the penalty is required to be paid.

(7)

The date specified must not be earlier than the end of the period within which an appeal against the notice may be brought under section 46.

F8(7A)

In fixing a penalty under this section the CMA must have regard to—

(a)

the seriousness of the infringement concerned, and

(b)

the desirability of deterring both the undertaking on whom the penalty is imposed and others from—

(i)

entering into agreements which infringe the Chapter 1 prohibition F9..., or

(ii)

engaging in conduct which infringes the Chapter 2 prohibition F10....

(8)

No penalty fixed by the F11CMA under this section may exceed 10% of the turnover of the undertaking (determined in accordance with such provisions as may be specified in an order made by the Secretary of State).

(9)

Any sums received by the F11CMA under this section are to be paid into the Consolidated Fund.