Part 4Market Studies and Market Investigations

Chapter 3Enforcement

Undertakings and orders: monitoring, consultation and advice

F1162ADuty of CMA to monitor effectiveness of undertakings and orders: Part 4

(1)

The CMA must keep under review the effectiveness of enforcement undertakings accepted under this Part and enforcement orders made under this Part.

(2)

The CMA must, whenever requested to do so by the Secretary of State and otherwise from time to time, prepare a report of its findings under subsection (1).

(3)

The CMA must—

(a)

give a copy of any report prepared by it under subsection (2) to the Secretary of State, and

(b)

publish the report.

(4)

Subsection (5) applies, in relation to an adverse effect on competition identified in a report mentioned in section 138(1), where—

(a)

the report was published within the previous 10 years,

(b)

the CMA last took action in accordance with section 138(2) or subsection (5) of this section no less than two years ago, and

(c)

the CMA concludes, as a result of a review under subsection (1), that the action mentioned in paragraph (b) has been ineffective for the purposes mentioned in that section.

(5)

The CMA must take such action as it considers appropriate for the purposes mentioned in section 138(2) in relation to—

(a)

any possible variation or release by the CMA of an enforcement undertaking accepted by it;

(b)

any possible new enforcement undertaking to be accepted by the CMA so as to supersede another enforcement undertaking given to it;

(c)

any possible variation or revocation by the CMA of an enforcement order made by it;

(d)

any possible enforcement undertaking to be accepted by the CMA instead of an enforcement order made by it, or any possible enforcement order to be made by the CMA instead of an enforcement undertaking accepted by it.

(6)

Where the CMA decides to take action under subsection (5), the CMA must take the action within the period of six months beginning with the date on which that decision is published under section 172(2)(h).

(7)

Subsection (8) applies, in relation to an adverse effect on competition or an effect adverse to the public interest identified in a report mentioned in section 146(1) or 146A(1) (as the case may be), where—

(a)

the report was laid before each House of Parliament in accordance with section 172(10) within the previous 10 years,

(b)

the Secretary of State last took action in accordance with section 142(2) or 147A(2) (as the case may be) no less than two years ago, and

(c)

the CMA concludes, as a result of a review under subsection (1), that action taken in accordance with that section has been ineffective for the purposes mentioned in that section.

(8)

The CMA must give the Secretary of State such advice as it considers appropriate for the purposes mentioned in section 147(2) or 147A(2) (as the case may be) in relation to—

(a)

any possible variation or release by the Secretary of State of an enforcement undertaking accepted by the Secretary of State;

(b)

any possible new enforcement undertaking to be accepted by the Secretary of State under that section so as to supersede another enforcement undertaking given to the Secretary of State;

(c)

any possible variation or revocation by the Secretary of State of an enforcement order made by the Secretary of State;

(d)

any possible enforcement undertaking to be accepted by the Secretary of State instead of an enforcement order, or any possible enforcement order to be made by the Secretary of State instead of an enforcement undertaking accepted under that section.