The Competition and Markets Authority (Penalties) Order 2014

EXPLANATORY NOTE

(This note is not part of the Order)

This Order specifies the maximum amounts that the Competition and Markets Authority (“the CMA”) may impose as a penalty under section 110(1) or (3) of the Enterprise Act 2002 (“EA 2002”). Section 110(1) of the EA 2002 permits the CMA to impose a penalty where a person has failed without reasonable excuse to comply with a notice under section 109 of the EA 2002. Section 110(3) of the Act permits the CMA to impose such a penalty where it considers that a person has intentionally obstructed or delayed another person in the exercise of his powers under section 109(6) EA 2002.

A penalty imposed under section 110(1) of the EA 2002 may be a fixed amount, an amount calculated by reference to a daily rate, or a combination of the two. Where the penalty comprises or includes a fixed amount, the maximum fixed amount is £30,000. Where the penalty comprises or includes an amount calculated by reference to a daily rate, the maximum rate at which the penalty may increase is £15,000 per day.

A penalty imposed under section 110(3) of the EA 2002 must be a fixed amount. The maximum amount of such a penalty is £30,000.

Sections 110 and 111 of the EA 2002 apply for the purposes of references to the CMA or investigations by the CMA for the purpose of exercising functions under a number of other statutory provisions.

This Order also specifies the maximum amounts that the CMA may impose as a penalty under section 174A(1) or (3) EA 2002. Section 174A(1) of the EA 2002 permits the CMA to impose a penalty where a person has failed, without reasonable excuse, to comply with a notice under section 174 of the EA 2002. Section 174A(3) of the EA 2002 permits the CMA to impose such a penalty where it considers that a person has intentionally obstructed or delayed another person in the exercise of his powers under section 174(7) of the EA 2002.

A penalty imposed under section 174D(4) of the EA 2002 may be a fixed amount, an amount calculated by reference to a daily rate, or a combination of the two. Where the penalty comprises or includes a fixed amount, the maximum fixed amount is £30,000. Where the penalty comprises or includes an amount calculated by reference to a daily rate, the maximum rate at which the penalty may increase is £15,000 per day.

A penalty imposed under section 174D(5) of the EA 2002 must be a fixed amount. The maximum amount of such a penalty is £30,000.

This Order also specifies the maximum amounts that the CMA may impose as a penalty under sections 26, 26A, 27, 28 and 28A of the Competition Act 1998 (“CA 1998”). Section 40A(1) of the CA 1998 permits the CMA to impose a penalty where a person has failed to comply with a requirement imposed on the person under those sections. A penalty imposed under section 40A(3) of the Act may be a fixed amount, an amount calculated by reference to a daily rate, or a combination of the two. Where the penalty comprises or includes a fixed amount, the maximum fixed amount is £30,000. Where the penalty comprises or includes an amount calculated by reference to a daily rate, the maximum rate at which the penalty may increase is £15,000 per day.

Article 6 makes transitional provisions.

The impact assessment completed for Parts 3 and 4 of the Enterprise and Regulatory Reform Bill, introduced to Parliament on 23rd May 2012, contains an assessment of the effect that the reforms to the competition regime will have on the costs of business and the public and voluntary sector and can be found at the website:

https://www.gov.uk/government/publications/strengthening-competition-and-creating-a-single-market-authority.