Part 4Market Investigations

Chapter 3Enforcement

Undertakings and orders

154Undertakings in lieu of market investigation references

(1)

Subsection (2) applies if the OFT considers that it has the power to make a reference under section 131 and otherwise intends to make such a reference.

(2)

The OFT may, instead of making such a reference and for the purpose of remedying, mitigating or preventing—

(a)

any adverse effect on competition concerned; or

(b)

any detrimental effect on customers so far as it has resulted from, or may be expected to result from, the adverse effect on competition;

accept, from such persons as it considers appropriate, undertakings to take such action as it considers appropriate.

(3)

In proceeding under subsection (2), the OFT shall, in particular, have regard to the need to achieve as comprehensive a solution as is reasonable and practicable to the adverse effect on competition concerned and any detrimental effects on customers so far as resulting from the adverse effect on competition.

(4)

In proceeding under subsection (2), the OFT may, in particular, have regard to the effect of any action on any relevant customer benefits of the feature or features of the market concerned.

(5)

The OFT shall take no action under subsection (2) to remedy, mitigate or prevent any detrimental effect on customers so far as it may be expected to result from the adverse effect on competition concerned if—

(a)

no detrimental effect on customers has resulted from the adverse effect on competition; and

(b)

the adverse effect on competition is not being remedied, mitigated or prevented.

(6)

An undertaking under this section—

(a)

shall come into force when accepted;

(b)

may be varied or superseded by another undertaking; and

(c)

may be released by the OFT.

(7)

The OFT shall, as soon as reasonably practicable, consider any representations received by it in relation to varying or releasing an undertaking under this section.

(8)

This section is subject to sections 150 and 155.