Competition Act 1998 (c. 41)

(The document as of February, 2008)

-- Back --

Page 6

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14

9 (1) The Chapter I prohibition does not apply to an agreement for the constitution of a recognised supervisory or qualifying body to the extent to which it relates to--

(a) rules of, or guidance issued by, the body; and

(b) incidental matters connected with the rules or guidance.

(2) The Chapter I prohibition does not apply to an agreement the parties to which consist of or include--

(a) a recognised supervisory or qualifying body, or

(b) any person mentioned in paragraph 3(5) or (6),

to the extent to which the agreement consists of provisions the inclusion of which in the agreement is required or contemplated by the rules or guidance of that body.

(3) The Chapter I prohibition does not apply to the practices mentioned in paragraph 3(4)(a) and (b).

(4) Where a recognition order is revoked, sub-paragraphs (1) to (3) are to continue to apply for a period of 6 months beginning with the day on which the revocation takes effect, as if the order were still in force.

(5) In this paragraph--

(a) "the Chapter I prohibition" means the prohibition imposed by section 2(1) of the Competition Act 1998,

(b) references to an agreement are to be read as applying equally to, or in relation to, a decision or concerted practice,

and expressions used in this paragraph which are also used in Part I of the Competition Act 1998 are to be interpreted in the same way as for the purposes of that Part of that Act.

(6) In the application of this paragraph to decisions and concerted practices, references to provisions of an agreement are to be read as references to elements of a decision or concerted practice. "

Part III Broadcasting

The Broadcasting Act 1990 (c. 42)

4 (1) The Broadcasting Act 1990 is amended as follows.

(2) In section 194A (which modifies the [1976 c. 34.] Restrictive Trade Practices Act 1976 in its application to agreements relating to Channel 3 news provision), for subsections (2) to (6), substitute--

" (2) If, having sought the advice of the Director, it appears to the Secretary of State, in relation to some or all of the provisions of a relevant agreement, that the conditions mentioned in subsection (3) are satisfied, he may make a declaration to that effect.

(3) The conditions are that--

(a) the provisions in question do not have, and are not intended or likely to have, to any significant extent the effect of restricting, distorting or preventing competition; or

(b) the effect of restricting, distorting or preventing competition which the provisions in question do have or are intended or are likely to have, is not greater than is necessary--

(i) in the case of a relevant agreement falling within subsection (1)(a), for securing the appointment by holders of regional Channel 3 licences of a single body corporate to be the appointed news provider for the purposes of section 31(2), or

(ii) in the case of a relevant agreement falling within subsection (1)(b), for compliance by them with conditions included in their licences by virtue of section 31(1) and (2).

(4) If the Secretary of State makes a declaration under this section, the Chapter I prohibition does not apply to the agreement to the extent to which the agreement consists of provisions to which the declaration relates.

(5) If the Secretary of State is satisfied that there has been a material change of circumstances, he may--

(a) revoke a declaration made under this section, if he considers that the grounds on which it was made no longer exist;

(b) vary such a declaration, if he considers that there are grounds for making a different declaration; or

(6) If the Secretary of State makes, varies or revokes a declaration under this section, he must notify the Director of his decision.

(7) The Director may not exercise any Chapter III powers in respect of a relevant agreement, unless--

(a) he has notified the Secretary of State of his intention to do so; and

(b) the Secretary of State--

(i) has notified the Director that he has not made a declaration in respect of the agreement, or provisions of the agreement, under this section and that he does not intend to make such a declaration; or

(ii) has revoked a declaration under this section and a period of six months beginning with the date on which the revocation took effect has expired.

(8) If the Director proposes to exercise any Chapter III powers in respect of a relevant agreement, he must give the Secretary of State particulars of the agreement and such other information--

(a) as he considers will assist the Secretary of State to decide whether to exercise his powers under this section; or

(b) as the Secretary of State may request.

(9) In this section--

"the Chapter I prohibition" means the prohibition imposed by section 2(1) of the Competition Act 1998;
"Chapter III powers" means the powers given to the Director by Chapter III of Part I of that Act so far as they relate to the Chapter I prohibition;
"Director" means the Director General of Fair Trading;
"regional Channel 3 licence" has the same meaning as in Part I;

and expressions used in this section which are also used in Part I of the Competition Act 1998 are to be interpreted in the same way as for the purposes of that Part of that Act.

(10) In this section references to an agreement are to be read as applying equally to, or in relation to, a decision or concerted practice.

(11) In the application of this section to decisions and concerted practices, references to provisions of an agreement are to be read as references to elements of a decision or concerted practice. "

Networking arrangements under the Broadcasting Act 1990 (c. 42)

5 (1) The Chapter I prohibition does not apply in respect of any networking arrangements to the extent to which they--

(a) are subject to Schedule 4 to the Broadcasting Act 1990 (competition references with respect to networking arrangements); or

(b) contain provisions which have been considered under that Schedule.

(2) The Independent Television Commission ("ITC") must publish a list of the networking arrangements which in their opinion are excluded from the Chapter I prohibition by virtue of sub-paragraph (1).

(3) The ITC must--

(a) consult the Director before publishing the list, and

(b) publish the list in such a way as they think most suitable for bringing it to the attention of persons who, in their opinion, would be affected by, or likely to have an interest in, it.

(4) In this paragraph "networking arrangements" means--

(a) any arrangements entered into as mentioned in section 39(4) or (7)(b) of the Broadcasting Act 1990, or

(b) any agreements--

(i) which do not constitute arrangements of the kind mentioned in paragraph (a), but

(ii) which are made for the purpose mentioned in section 39(1) of that Act, or

Part IV Environmental Protection

Producer responsibility obligations

6 (1) The [1995 c. 25.] Environment Act 1995 is amended as follows.

(2) In section 94(1) (supplementary provisions about regulations imposing producer responsibility obligations on prescribed persons), after paragraph (o), insert--

" (oa) the exclusion or modification of any provision of Part I of the Competition Act 1998 in relation to exemption schemes or in relation to any agreement, decision or concerted practice at least one of the parties to which is an operator of an exemption scheme; " .

(3) After section 94(6), insert--

" (6A) Expressions used in paragraph (oa) of subsection (1) above which are also used in Part I of the Competition Act 1998 are to be interpreted in the same way as for the purposes of that Part of that Act. "

(4) After section 94, insert--

" 94A Producer responsibility: competition matters

(1) For the purposes of this section, the relevant paragraphs are paragraphs (n), (o), (oa) and (ya) of section 94(1) above.

(2) Regulations made by virtue of any of the relevant paragraphs may include transitional provision in respect of agreements or exemption schemes--

(a) in respect of which information has been required for the purposes of competition scrutiny under any regulation made by virtue of paragraph (ya);

(b) which are being, or have been, considered for the purposes of competition scrutiny under any regulation made by virtue of paragraph (n) or (ya); or

(c) in respect of which provisions of the [1976 c. 34.] Restrictive Trade Practices Acts 1976 and [1977 c. 19.] 1977 have been modified or excluded in accordance with any regulation made by virtue of paragraph (o).

(3) Subsections (2), (3), (5) to (7) and (10) of section 93 above do not apply to a statutory instrument which contains only regulations made by virtue of any of the relevant paragraphs or subsection (2) above.

(4) Such a statutory instrument shall be subject to annulment in pursuance of a resolution of either House of Parliament. "

Sections 3(1)(c) and 19(1)(b).

SCHEDULE 3 General Exclusions

Planning obligations

1 (1) The Chapter I prohibition does not apply to an agreement--

(a) to the extent to which it is a planning obligation;

(b) which is made under section 75 (agreements regulating development or use of land) or 246 (agreements relating to Crown land) of the [1997 c. 8.] Town and Country Planning (Scotland) Act 1997; or

(2) In sub-paragraph (1)(a), "planning obligation" means--

(a) a planning obligation for the purposes of section 106 of the [1990 c. 8.] Town and Country Planning Act 1990; or

(b) a planning obligation for the purposes of section 299A of that Act.

Section 21(2) agreements

2 (1) The Chapter I prohibition does not apply to an agreement in respect of which a direction under section 21(2) of the [1976 c. 34.] Restrictive Trade Practices Act 1976 is in force immediately before the coming into force of section 2 ("a section 21(2) agreement").

(2) If a material variation is made to a section 21(2) agreement, sub-paragraph (1) ceases to apply to the agreement on the coming into force of the variation.

(3) Sub-paragraph (1) does not apply to a particular section 21(2) agreement if the Director gives a direction under this paragraph to that effect.

(4) If the Director is considering whether to give a direction under this paragraph, he may by notice in writing require any party to the agreement in question to give him such information in connection with the agreement as he may require.

(5) The Director may give a direction under this paragraph only as provided in sub-paragraph (6) or (7).

(6) If at the end of such period as may be specified in rules under section 51 a person has failed, without reasonable excuse, to comply with a requirement imposed under sub-paragraph (4), the Director may give a direction under this paragraph.

(7) The Director may also give a direction under this paragraph if he considers--

(a) that the agreement will, if not excluded, infringe the Chapter I prohibition; and

(b) that he is not likely to grant it an unconditional individual exemption.

(8) For the purposes of sub-paragraph (7) an individual exemption is unconditional if no conditions or obligations are imposed in respect of it under section 4(3)(a).

(9) A direction under this paragraph--

(a) must be in writing;

(b) may be made so as to have effect from a date specified in the direction (which may not be earlier than the date on which it is given).

EEA Regulated Markets

3 (1) The Chapter I prohibition does not apply to an agreement for the constitution of an EEA regulated market to the extent to which the agreement relates to any of the rules made, or guidance issued, by that market.

(2) The Chapter I prohibition does not apply to a decision made by an EEA regulated market, to the extent to which the decision relates to any of the market's regulating provisions.

(3) The Chapter I prohibition does not apply to--

(a) any practices of an EEA regulated market; or

(b) any practices which are trading practices in relation to an EEA regulated market.

(4) The Chapter I prohibition does not apply to an agreement the parties to which are or include--

(a) an EEA regulated market, or

(b) a person who is subject to the rules of that market,

to the extent to which the agreement consists of provisions the inclusion of which is required or contemplated by the regulating provisions of that market.

(5) In this paragraph--

"EEA regulated market" is a market which--
(a)
is listed by an EEA State other than the United Kingdom pursuant to article 16 of Council Directive No. 93/22/EEC of 10th May 1993 on investment services in the securities field; and
(b)
operates without any requirement that a person dealing on the market should have a physical presence in the EEA State from which any trading facilities are provided or on any trading floor that the market may have;
"EEA State" means a State which is a contracting party to the EEA Agreement;
"regulating provisions", in relation to an EEA regulated market, means--
(a)
rules made, or guidance issued, by that market,
(b)
practices of that market, or
(c)
practices which, in relation to that market, are trading practices;
"trading practices", in relation to an EEA regulated market, means practices of persons who are subject to the rules made by that market, and--
(a)
which relate to business in respect of which those persons are subject to the rules of that market, and which are required or contemplated by those rules or by guidance issued by that market; or
(b)
which are otherwise attributable to the conduct of that market as such.

Services of general economic interest etc.

4 Neither the Chapter I prohibition nor the Chapter II prohibition applies to an undertaking entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly in so far as the prohibition would obstruct the performance, in law or in fact, of the particular tasks assigned to that undertaking.

Compliance with legal requirements

5 (1) The Chapter I prohibition does not apply to an agreement to the extent to which it is made in order to comply with a legal requirement.

(2) The Chapter II prohibition does not apply to conduct to the extent to which it is engaged in an order to comply with a legal requirement.

(3) In this paragraph "legal requirement" means a requirement--

(a) imposed by or under any enactment in force in the United Kingdom;

(b) imposed by or under the Treaty or the EEA Agreement and having legal effect in the United Kingdom without further enactment; or

Avoidance of conflict with international obligations

6 (1) If the Secretary of State is satisfied that, in order to avoid a conflict between provisions of this Part and an international obligation of the United Kingdom, it would be appropriate for the Chapter I prohibition not to apply to--

(a) a particular agreement, or

(b) any agreement of a particular description,

he may by order exclude the agreement, or agreements of that description, from the Chapter I prohibition.

(2) An order under sub-paragraph (1) may make provision for the exclusion of the agreement or agreements to which the order applies, or of such of them as may be specified, only in specified circumstances.

(3) An order under sub-paragraph (1) may also provide that the Chapter I prohibition is to be deemed never to have applied in relation to the agreement or agreements, or in relation to such of them as may be specified.

(4) If the Secretary of State is satisfied that, in order to avoid a conflict between provisions of this Part and an international obligation of the United Kingdom, it would be appropriate for the Chapter II prohibition not to apply in particular circumstances, he may by order provide for it not to apply in such circumstances as may be specified.

(5) An order under sub-paragraph (4) may provide that the Chapter II prohibition is to be deemed never to have applied in relation to specified conduct.

(6) An international arrangement relating to civil aviation and designated by an order made by the Secretary of State is to be treated as an international obligation for the purposes of this paragraph.

(7) In this paragraph and paragraph 7 "specified" means specified in the order.

Public policy

7 (1) If the Secretary of State is satisfied that there are exceptional and compelling reasons of public policy why the Chapter I prohibition ought not to apply to--

(a) a particular agreement, or

(b) any agreement of a particular description,

he may by order exclude the agreement, or agreements of that description, from the Chapter I prohibition.

(4) If the Secretary of State is satisfied that there are exceptional and compelling reasons of public policy why the Chapter II prohibition ought not to apply in particular circumstances, he may by order provide for it not to apply in such circumstances as may be specified.

(5) An order under sub-paragraph (4) may provide that the Chapter II prohibition is to be deemed never to have applied in relation to specified conduct.

Coal and steel

8 (1) The Chapter I prohibition does not apply to an agreement which relates to a coal or steel product to the extent to which the ECSC Treaty gives the Commission exclusive jurisdiction in the matter.

(2) Sub-paragraph (1) ceases to have effect on the date on which the ECSC Treaty expires ("the expiry date").

(3) The Chapter II prohibition does not apply to conduct which relates to a coal or steel product to the extent to which the ECSC Treaty gives the Commission exclusive jurisdiction in the matter.

(4) Sub-paragraph (3) ceases to have effect on the expiry date.

(5) In this paragraph--

"coal or steel product" means any product of a kind listed in Annex I to the ECSC Treaty; and
"ECSC Treaty" means the Treaty establishing the European Coal and Steel Community.

Agricultural products

9 (1) The Chapter I prohibition does not apply to an agreement to the extent to which it relates to production of or trade in an agricultural product and--

(a) forms an integral part of a national market organisation;

(b) is necessary for the attainment of the objectives set out in Article 39 of the Treaty; or

(c) is an agreement of farmers or farmers' associations (or associations of such associations) belonging to a single member State which concerns--

(i) the production or sale of agricultural products, or

(ii) the use of joint facilities for the storage, treatment or processing of agricultural products,

and under which there is no obligation to charge identical prices.

(2) If the Commission determines that an agreement does not fulfil the conditions specified by the provision for agricultural products for exclusion from Article 85(1), the exclusion provided by this paragraph ("the agriculture exclusion") is to be treated as ceasing to apply to the agreement on the date of the decision.

(3) The agriculture exclusion does not apply to a particular agreement if the Director gives a direction under this paragraph to that effect.

(5) The Director may give a direction under this paragraph only as provided in sub-paragraph (6) or (7).

(7) The Director may also give a direction under this paragraph if he considers that an agreement (whether or not he considers that it infringes the Chapter I prohibition) is likely, or is intended, substantially and unjustifiably to prevent, restrict or distort competition in relation to an agricultural product.

(8) A direction under this paragraph--

(a) must be in writing;

(b) may be made so as to have effect from a date specified in the direction (which may not be earlier than the date on which it is given).

(9) In this paragraph--

"agricultural product" means any product of a kind listed in Annex II to the Treaty; and
"provision for agricultural products" means Council Regulation (EEC) No. 26/62 of 4th April 1962 applying certain rules of competition to production of and trade in agricultural products.

Section 3(1)(d).

SCHEDULE 4 Professional Rules

Part I Exclusion

General

1 (1) To the extent to which an agreement (either on its own or when taken together with another agreement)--

(a) constitutes a designated professional rule,

(b) imposes obligations arising from designated professional rules, or

the Chapter I prohibition does not apply to the agreement.

(2) In this Schedule--

"designated" means designated by the Secretary of State under paragraph 2;
"professional rules" means rules regulating a professional service or the persons providing, or wishing to provide, that service;
"professional service" means any of the services described in Part II of this Schedule; and
"rules" includes regulations, codes of practice and statements of principle.

Designated rules

2 (1) The Secretary of State must establish and maintain a list designating, for the purposes of this Schedule, rules--

(a) which are notified to him under paragraph 3; and

(b) which, in his opinion, are professional rules.

(2) The list is to be established, and any alteration in the list is to be effected, by an order made by the Secretary of State.

(3) The designation of any rule is to have effect from such date (which may be earlier than the date on which the order listing it is made) as may be specified in that order.

Application for designation

3 (1) Any body regulating a professional service or the persons who provide, or wish to provide, that service may apply to the Secretary of State for rules of that body to be designated.

(2) An application under this paragraph must--

(a) be accompanied by a copy of the rules to which it relates; and

(b) be made in the prescribed manner.

Alterations

4 (1) A rule does not cease to be a designated professional rule merely because it is altered.

(2) If such a rule is altered (whether by being modified, revoked or replaced), the body concerned must notify the Secretary of State and the Director of the alteration as soon as is reasonably practicable.

Reviewing the list

5 (1) The Secretary of State must send to the Director--

(a) a copy of any order made under paragraph 2; and

(b) a copy of the professional rules to which the order relates.

(2) The Director must--

(a) retain any copy of a professional rule which is sent to him under sub-paragraph (1)(b) so long as the rule remains in force;

(b) maintain a copy of the list, as altered from time to time; and

(3) If the Director considers--

(a) that, with a view to restricting the exclusion provided by this Schedule, some or all of the rules of a particular body should no longer be designated, or

(b) that rules which are not designated should be designated,

he must advise the Secretary of State accordingly.

Removal from the list

6 (1) This paragraph applies if the Secretary of State receives advice under paragraph 5(3)(a).

(2) If it appears to the Secretary of State that another Minister of the Crown has functions in relation to the professional service concerned, he must consult that Minister.

(3) If it appears to the Secretary of State, having considered the Director's advice and the advice of any other Minister resulting from consultation under sub-paragraph (2), that the rules in question should no longer be designated, he may by order revoke their designation.

(4) Revocation of a designation is to have effect from such date as the order revoking it may specify.

Inspection

7 (1) Any person may inspect, and take a copy of--

(a) any entry in the list of designated professional rules as kept by the Director under paragraph 5(2); or

(b) any copy of professional rules retained by him under paragraph 5(1).

(2) The right conferred by sub-paragraph (1) is to be exercised only--

(a) at a time which is reasonable;

(b) on payment of such fee as the Director may determine; and

Part II Professional Services

Legal

8 The services of barristers, advocates or solicitors.

Medical

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14

-- Back --

Stat