PART 4

Competition Reform
CHAPTER 3

Anti-trust

Investigation powers

Civil enforcement of investigation powers
40
1
Part 1 of the 1998 Act (competition) is amended as follows.
2
After section 40 insert—

Civil sanctions

Penalties: failure to comply with requirements
40A
1
Where the CMA considers that a person has, without reasonable excuse, failed to comply with a requirement imposed on the person under section 26, 26A, 27, 28 or 28A, it may impose a penalty of such amount as it considers appropriate.
2
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
A penalty imposed under subsection (1) must not—
a
in the case of a fixed amount, exceed such amount as the Secretary of State may by order specify;
b
in the case of an amount calculated by reference to a daily rate, exceed such amount per day as the Secretary of State may so specify;
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 as the Secretary of State may so specify.
4
The fixed amount specified for the purposes of subsection (3)(a) or (c) may not exceed £30,000.
5
The amount per day specified for the purposes of subsection (3)(b) or (c) may not exceed £15,000.
6
In imposing a penalty by reference to a daily rate—
a
no account is to be taken of any days before the service of the notice under section 112 of the Enterprise Act 2002 (as applied by subsection (9)) on the person concerned, 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 (7).
7
The days are—
a
the day on which the requirement concerned is satisfied;
b
the day on which the CMA makes a decision (within the meaning given by section 31(2)) or terminates the investigation in question without making such a decision;
c
if the Secretary of State has made an order under section 31F(1)(b) imposing a time-limit on the making of such a decision, the latest day on which such a decision may be made as a result of the investigation in question.
8
Before making an order under subsection (3), the Secretary of State must consult the CMA and such other persons as the Secretary of State considers appropriate.
9
Sections 112 to 115 of the Enterprise Act 2002 (supplementary provisions about penalties) apply in relation to a penalty imposed under subsection (1) as they apply in relation to a penalty imposed under section 110(1) of that Act.

Statement of policy on penalties
40B
1
The CMA must prepare and publish a statement of policy in relation to the use of its powers under section 40A.
2
The CMA must, in particular, include a statement about the considerations relevant to the determination of the nature and amount of any penalty imposed under section 40A.
3
The CMA may revise its statement of policy and, where it does so, it must publish the revised statement.
4
The CMA must consult such persons as it considers appropriate when preparing or revising its statement of policy.
5
If the proposed statement of policy or revision relates to a matter in respect of which a regulator exercises concurrent jurisdiction, those consulted must include that regulator.
6
In deciding whether and, if so, how to proceed under section 40A, the CMA must have regard to the statement of policy which was most recently published under this section at the time when the failure concerned occurred.
3
Section 38 (guidance about appropriate level of penalties under section 36) is amended as follows.
4
In subsection (1), after “under this Part” insert “ in respect of an infringement of the Chapter 1 prohibition, the Chapter 2 prohibition, the prohibition in Article 81(1) or the prohibition in Article 82 ”.
5
In subsection (1A), for “a penalty under this Part” substitute “ such a penalty ”.
6
In subsection (8), after “under this Part” insert “ in respect of an infringement of a kind mentioned in subsection (1) ”.
7
Section 42 (offences of failure to comply with requirements imposed in investigations and obstruction) is amended as follows.
8
Omit subsections (1) to (4).
9
In subsection (6), omit “(1) or”.
S. 40 partly in force; s. 40 in force for specified purposes at Royal Assent, see s. 103(1)(i)
S. 40 in force at 1.4.2014 in so far as not already in force by S.I. 2014/416, art. 2(1)(b) (with Sch.)