1999 No. 2281

COMPETITION

The Competition Act 1998 (Provisional Immunity from Penalties) Regulations 1999

Made

Laid before Parliament

Coming into force

The Secretary of State in exercise of the powers conferred on him by sections 41(5), 59(1) and 71 of the Competition Act 19981 hereby makes the following Regulations:

Citation1

These Regulations may be cited as the Competition Act 1998 (Provisional Immunity from Penalties) Regulations 1999 and shall come into force on 1st March 2000.

Provisional immunity from penalties2

For the purposes of section 41 of the Competition Act 1998 the expression “provisional immunity from penalties” means immunity from fines for breach of the prohibition contained in Article 81(1)2 of the Treaty by reason of:

i

Article 15(5)(a) of Council Regulation (EEC) No. 17/62 the First Regulation implementing Articles 85 and 86 of the Treaty3;

ii

Article 19(4) of Council Regulation (EEC) No. 4056/86 laying down detailed rules for the application of Articles 85 and 86 of the Treaty to maritime transport4; and

iii

Article 12(5) of Council Regulation (EEC) No. 3975/87 laying down the procedure for the application of the rules on competition to undertakings in the air transport sector5.

Kim Howells,Parliamentary Under Secretary of State for Competition and Consumer Affairs,Department of Trade and Industry

(This note is not part of the Regulations)

Section 41 of the Competition Act 1998 confers immunity from penalties for infringement of the Chapter I prohibition where a party has notified an agreement to the European Commission seeking an exemption under Article 81(3) of the Treaty establishing the European Community and before the Commission determines the matter. If however the Commission withdraws from the agreement the benefit of “provisional immunity from penalties” then the immunity under section 41 also ceases to apply. These Regulations prescribe what is meant by “provisional immunity from penalties” by reference to the First Regulation implementing Articles 85 and 86 of the Treaty (now Articles 81 and 82), and the implementing regulations in respect of maritime transport and air transport. Under each of these regulations the Commission may withdraw immunity from fines in respect of notified agreements by informing the undertakings concerned that, after preliminary examination, it is of the opinion that Article 81(1) of the Treaty applies and that application of Article 81(3) is not justified.