Part 4Market Studies and Market Investigations

Chapter 3Enforcement

Undertakings in lieu

156 Effect of undertakings F1in lieu

F2A1

No market investigation reference shall be made by the CMA or the appropriate Minister in relation to any feature, or combination of features, of a market in the United Kingdom for goods or services if—

(a)

the CMA has accepted an undertaking or group of undertakings under section F3154A within the previous 12 months;

(b)

F4any feature or combination of features to which the undertaking or group of undertakings relates is F5a feature or combination of features to which the reference would relate; and

(c)

the goods or services to which the undertaking or group of undertakings relates are of the same description as the goods or services to which the reference would relate.

(1)

No F6ordinary reference shall be made by the F7CMA or the appropriate Minister in relation to any feature, or combination of features, of a market in the United Kingdom for goods or services if—

(a)

the F7CMA has F8, instead of making an ordinary reference, accepted an undertaking or group of undertakings F9in lieu of a reference under section 154A within the previous 12 months; F10...

F11(ab)

any feature or combination of features to which the undertaking or group of undertakings relates is a feature or combination of features to which the reference would relate; and

(b)

the goods or services to which the undertaking or group of undertakings relates are of the same description as the goods or services to which F12the reference would relate.

(2)

F13Subsections (A1) and (1) do not prevent the making of a market investigation reference if—

(a)

the F7CMA considers that any undertaking concerned has been breached and has given notice of that fact to the person responsible for giving the undertaking; or

(b)

the person responsible for giving any undertaking concerned supplied, in connection with the matter, information to the F7CMA which was false or misleading in a material respect.

F14(3)

The expiry of the period mentioned in section 131B(4) does not prevent the making of a market investigation reference if the CMA has accepted an undertaking or group of undertakings under section F15154A and—

(a)

the CMA considers that any undertaking concerned has been breached and has given notice of that fact to the person responsible for giving the undertaking; or

(b)

the person responsible for giving any undertaking concerned supplied, in connection with the matter, information to the OFT which was false or misleading in a material respect.

F16(4)

Where the CMA has, under section 154A, accepted an undertaking, or group of undertakings, in lieu of a report the CMA is not required by virtue of section 134 to make the decisions referred to in subsections (1) and (1A) of that section in relation to a feature, or features, to which the undertaking, or group of undertakings, relate.

(5)

Accordingly, a report under section 136 is not required, and the duty under section 138 does not arise, if the CMA accepts an undertaking fully in lieu of a report.

(6)

Instead, where the CMA accepts an undertaking fully in lieu of a report the CMA must prepare and publish a report containing—

(a)

the CMA’s decision to accept the undertaking,

(b)

the reasons for the decision, and

(c)

such information as the CMA considers appropriate for facilitating a proper understanding of the decision and its reasons for the decision.

(7)

For provision equivalent to subsection (6) in the case where the CMA accepts an undertaking partially in lieu of a report, see section 136(2)(aa).