Enterprise Act 2002

[F1 174D Penalties [F2 : amount] U.K.

(1) A penalty imposed under section 174A(1) or [F3 (1A)] shall be of such amount as [F4 the relevant authority] considers appropriate.

(2) In the case of a penalty imposed under section [F5 174A(1)(a)], the amount may be—

(a) a fixed amount;

(b) an amount calculated by reference to a daily rate; or

(c) a combination of a fixed amount and an amount calculated by reference to a daily rate.

(3) In the case of a penalty imposed under [F6 any of section 174A(1)(b), (c) or (1A)], the amount shall be a fixed amount.

(4) [F7 A penalty imposed under section 174A(1) or (1A) on a person who does not own or control an enterprise must not—]

(a) in the case of a fixed amount, exceed [F8 £30,000];

(b) in the case of an amount calculated by reference to a daily rate, exceed [F9 £15,000 per day]; and

(c) in the case of a fixed amount and an amount calculated by reference to a daily rate, exceed such fixed amount and such amount per day F10 ....

[F11 (4A) A penalty imposed under section 174A(1) or (1A) on any other person must not—

(a) in the case of a fixed amount, exceed 1% of the total value of the turnover (both in and outside the United Kingdom) of the enterprises owned or controlled by the person;

(b) in the case of an amount calculated by reference to a daily rate, for each day exceed 5% of the total value of the daily turnover (both in and outside the United Kingdom) of the enterprises owned or controlled by the person;

(c) in the case of a fixed amount and an amount calculated by reference to a daily rate, exceed such fixed amount and such amount per day.]

F12 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F13 (6A) The Secretary of State may by regulations amend subsection (4)(a) and (b) by substituting for either or both of the sums for the time being specified in those paragraphs such other sum or sums as the Secretary of State considers appropriate.]

(7) Before making [F14 regulations under subsection (6A)], the Secretary of State shall consult—

(a) the CMA; and

(b) such other persons as the Secretary of State considers appropriate.

(8) In imposing a penalty by reference to a daily rate—

(a) no account is to be taken of any days before the service on the person concerned of [F15 provisional penalty notice under section 112(A1)] (as applied by [F16 section 174A(10)]); and

(b) unless the CMA determines an earlier date (whether before or after the penalty is imposed), the amount payable ceases to accumulate at the beginning of the earliest of the days mentioned in subsection (9).

(9) Those days are—

(a) the day on which the requirement of the notice concerned under section 174 is satisfied;

(b) the day which is the relevant day in the case in question for the purposes of section 174B.

F17 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F18 (11) The Secretary of State may by regulations make provision for determining, for the purposes of this section—

(a) when an enterprise is to be treated as being controlled by a person;

(b) the turnover and daily turnover (both in and outside the United Kingdom) of an enterprise.

(12) Regulations under subsection (11)(b) may, in particular, make provision as to—

(a) the amounts which are, or which are not, to be treated as comprising an enterprise’s turnover or daily turnover;

(b) the date, or dates, by reference to which an enterprise’s turnover, or daily turnover, is to be determined.

(13) Regulations under subsection (11) may, in particular, make provision enabling the relevant authority to determine matters of a description specified in the regulations (including any of the matters mentioned in paragraphs (a) and (b) of subsection (12)).]]

Textual Amendments

F1 Ss. 174A-174E inserted (25.4.2013 for specified purposes, 1.4.2014 in so far as not already in force) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(1)(i)(3), Sch. 11 para. 1; S.I. 2014/416, art. 2(1)(d) (with Sch.)

F2 Word in s. 174D heading inserted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(2); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F3 Word in s. 174D(1) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(3)(a); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F4 Words in s. 174D(1) inserted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(3)(b); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F5 Word in s. 174D(2) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(4); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F6 Words in s. 174D(3) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(5); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F7 Words in s. 174D(4) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(6)(a); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F8 Sum in S. 174D(4)(a) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(6)(b); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F9 Sum in S. 174D(4)(b) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(6)(c); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F10 Words in s. 174D(4)(c) omitted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(6)(d); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F11 S. 174D(4A) inserted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(7); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F12 S. 174D(5)(6) omitted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(8); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F13 S. 174D(6A) inserted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(9); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F14 Words in s. 174D(7) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(10); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F15 Words in s. 174D(8)(a) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(11)(a); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F16 Words in s. 174D(8)(a) substituted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(11)(b); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F17 S. 174D(10) omitted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by virtue of Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(12); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

F18 S. 174D(11)-(13) inserted (24.5.2024 for specified purposes, 1.1.2025 in so far as not already in force) by Digital Markets, Competition and Consumers Act 2024 (c. 13), s. 339(2)(c), Sch. 10 para. 29(13); S.I. 2024/1226, regs. 1(2), 2(1)(14) (with Sch. para. 15, 20)

Modifications etc. (not altering text)

C1 Pt. 4 modified by 2012 c. 7, s. 73(3)(b) (as substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 189(4)(c) (with art. 3))

C2 Pt. 4 modified by 2000 c. 38, s. 86(4A) (as inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 154(6) (with art. 3))

C3 Pt. 4 modified (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 4 para. 57; S.I. 2014/416, art. 2(1)(c) (with Sch.)

C4 Pt. 4 modified by 2012 c. 19, s. 60(3A) (as inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 197(5) (with art. 3))

C5 Pt. 4 certain functions made exercisable concurrently (1.4.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 59(1)-(5), 148(5); S.I. 2014/823, art.

C6 Pt. 4 modified by 1991 c. 56, s. 31(4) (as amended (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 84(5)(d) (with art. 3))

C7 Pt. 4 modified by 1989 c. 29, s. 43(2B) (as amended (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 65(4)(d) (with art. 3))

C8 Pt. 4 modified by 1986 c. 44, s. 36A (as amended (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 50(4)(d) (with art. 3))

C9 Pt. 4 modified by 1993 c. 43, s. 67(4)(d) (as amended (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 105(4)(d) (with art. 3))