Enterprise Act 2002 (c. 40)

(The document as of February, 2008)

-- Back --

Page 19

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 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39

14 Tribunal rules may provide for the Tribunal to reject any proceedings if it is satisfied that the person instituting the proceedings has habitually and persistently and without any reasonable ground--

(a) instituted vexatious proceedings (whether against the same person or against different persons); or

(b) made vexatious applications in any proceedings.

15 Tribunal rules must ensure that no proceedings are rejected without giving the parties the opportunity to be heard.

Pre-hearing reviews and preliminary matters

16 (1) Tribunal rules may make provision for the carrying out by the Tribunal of a preliminary consideration of proceedings (a "pre-hearing review").

(2) That provision may include--

(a) provision enabling such powers to be exercised on a pre-hearing review as may be specified in the rules;

(b) provision for security and supplemental provision relating to security.

(3) For the purposes of sub-paragraph (2)(b)--

(a) "provision for security" means provision authorising the Tribunal, in specified circumstances, to order a party to the proceedings, if he wishes to continue to participate in them, to pay a deposit not exceeding such sum as may be specified or calculated in a specified manner; and

(b) "supplemental provision", in relation to security, means provision as to--

(i) the manner in which the amount of a deposit is to be determined;

(ii) the consequences of non-payment of a deposit;

(iii) the circumstances in which the deposit, or any part of it, may be refunded to the person who paid it or paid to another party to the proceedings.

Conduct of the hearing

17 (1) Tribunal rules may make provision--

(a) as to the manner in which proceedings are to be conducted, including provision for any hearing to be held in private if the Tribunal considers it appropriate because it is considering information of a kind mentioned in paragraph 1(2);

(b) as to the persons entitled to appear on behalf of the parties;

(c) for requiring persons to attend to give evidence and produce documents, and for authorising the administration of oaths to witnesses;

(d) as to the evidence which may be required or admitted and the extent to which it should be oral or written;

(e) allowing the Tribunal to fix time limits with respect to any aspect of proceedings and to extend any time limit (before or after its expiry);

(f) enabling the Tribunal, on the application of any party or on its own initiative, to order--

(i) the disclosure between, or the production by, the parties of documents or classes of documents; or

(ii) such recovery or inspection of documents as might be ordered by a sheriff;

(g) for the appointment of experts for the purposes of proceedings;

(h) for the award of costs or expenses, including allowances payable to persons in connection with attendance before the Tribunal;

(i) for taxing or otherwise settling any costs or expenses awarded by the Tribunal or for the enforcement of any order awarding costs or expenses.

(2) Rules under sub-paragraph (1)(h) may provide, in relation to a claim made under section 47A of the 1998 Act which is continued on behalf of an individual in proceedings under section 47B of that Act, for costs or expenses to be awarded to or against that individual in respect of proceedings on that claim which took place before it was included in the proceedings under section 47B of that Act.

(3) Otherwise Tribunal rules may not provide for costs or expenses to be awarded to or against an individual on whose behalf a claim is made or continued in proceedings under section 47B of the 1998 Act.

(4) Tribunal rules may make provision enabling the Tribunal to refer any matter arising in any proceedings (other than proceedings under section 47A or 47B of the 1998 Act) back to the authority that made the decision to which the proceedings relate, if it appears that the matter has not been adequately investigated.

(5) A person who without reasonable excuse fails to comply with--

(a) any requirement imposed by virtue of sub-paragraph (1)(c); or

(b) any requirement with respect to the disclosure, production, recovery or inspection of documents which is imposed by virtue of sub-paragraph (1)(f),

is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Quorum

18 (1) Tribunal rules may make provision as to the consequences of a member of the Tribunal being unable to continue after part of any proceedings have been heard.

(2) The rules may allow the Tribunal to consist of the remaining members for the rest of the proceedings.

(3) The rules may enable the President, if it is the chairman of the Tribunal who is unable to continue--

(a) to appoint either of the remaining members to chair the Tribunal; and

(b) if that person is not a member of the panel of chairmen, to appoint himself or some other suitably qualified person to attend the proceedings and advise the remaining members on any questions of law arising.

(4) For the purpose of sub-paragraph (3) a person is "suitably qualified" if he is, or is qualified for appointment as, a member of the panel of chairmen.

Interest

19 (1) Tribunal rules may make provision allowing the Tribunal to order that interest is payable on any sum awarded by the Tribunal or on any fees ordered to be paid under paragraph 20.

(2) That provision may include provision--

(a) as to the circumstances in which such an order may be made;

(b) as to the manner in which, and the periods in respect of which, interest is to be calculated and paid.

Fees

20 (1) Tribunal rules may provide--

(a) for fees to be chargeable in respect of specified costs of proceedings; and

(b) for the amount of such costs to be determined by the Tribunal.

(2) Any sums received in respect of such fees shall be paid into the Consolidated Fund.

Withdrawal of proceedings

21 (1) Tribunal rules may make provision--

(a) preventing a party who has instituted proceedings from withdrawing them without the permission of the Tribunal or, in specified circumstances, the President or the Registrar;

(b) for the Tribunal to grant permission to withdraw proceedings on such conditions as it considers appropriate;

(c) enabling the Tribunal to publish any decision which it would have made in any proceedings, had the proceedings not been withdrawn;

(d) as to the effect of withdrawal of proceedings; and

(e) as to the procedure to be followed if parties to proceedings agree to settle.

(2) Tribunal rules may make, in relation to a claim included in proceedings under section 47B of the 1998 Act, any provision which may be made under sub-paragraph (1) in relation to the whole proceedings.

Interim orders

22 (1) Tribunal rules may provide for the Tribunal to make an order, on an interim basis--

(a) suspending the effect of any decision which is the subject matter of proceedings before it;

(b) in the case of an appeal under section 46 or 47 of the 1998 Act, varying the conditions or obligations attached to an exemption;

(2) Tribunal rules may also make provision giving the Tribunal powers similar to those given to the OFT by section 35 of the 1998 Act.

Miscellaneous

23 (1) Tribunal rules may make provision enabling the Tribunal to decide where to sit for the purposes of, or of any part of, any proceedings before it.

(2) Tribunal rules may make provision enabling the Tribunal to decide that any proceedings before it are to be treated, for purposes connected with--

(a) any appeal from a decision of the Tribunal made in those proceedings; and

(b) any other matter connected with those proceedings,

as proceedings in England and Wales, Scotland or Northern Ireland (regardless of the decision made for the purposes of sub-paragraph (1)).

(3) For the purposes of sub-paragraph (2), Tribunal rules may provide for each claim made or continued on behalf of an individual in proceedings under section 47B of the 1998 Act to be treated as separate proceedings.

24 Tribunal rules may make provision--

(a) for a person who is not a party to be joined in any proceedings;

(b) for hearing a person who is not a party where, in any proceedings, it is proposed to make an order or give a direction in relation to that person;

(c) for proceedings to be consolidated on such terms as the Tribunal thinks appropriate in such circumstances as may be specified.

25 Tribunal rules may make provision for the Tribunal to transfer a claim made in proceedings under section 47A of the 1998 Act to--

(a) the High Court or a county court in England and Wales or Northern Ireland; or

(b) the Court of Session or a sheriff court in Scotland.

26 Tribunal rules may make provision in connection with the transfer of any proceedings from a court mentioned in paragraph 25 to the Tribunal under section 16.

Section 21

SCHEDULE 5 Proceedings under Part 1 of the 1998 Act

1 Part 1 of the 1998 Act is amended as follows.

2 In section 46 (appealable decisions)--

(a) in subsections (1) and (2), for "the Competition Commission" there is substituted "the Tribunal";

(b) in subsection (3) (in the full-out words), after "other decision" there is inserted "under this Part";

3 Section 48 (appeal tribunals) shall cease to have effect.

4 For section 49 there is substituted--

" 49 Further appeals

(1) An appeal lies to the appropriate court--

(a) from a decision of the Tribunal as to the amount of a penalty under section 36;

(b) from a decision of the Tribunal as to the award of damages or other sum in respect of a claim made in proceedings under section 47A or included in proceedings under section 47B (other than a decision on costs or expenses) or as to the amount of any such damages or other sum; and

(2) An appeal under this section--

(a) may be brought by a party to the proceedings before the Tribunal or by a person who has a sufficient interest in the matter; and

(b) requires the permission of the Tribunal or the appropriate court.

(3) In this section "the appropriate court" means the Court of Appeal or, in the case of an appeal from Tribunal proceedings in Scotland, the Court of Session. "

5 In section 58(1) (findings of fact by director)--

(a) in paragraph (a), after "appeal" there is inserted "under section 46 or 47"; and

(b) in paragraph (b), for "an appeal tribunal" there is substituted "the Tribunal".

6 In section 59(1) (interpretation of Part 1)--

(a) the definition of "appeal tribunal" shall cease to have effect;

(b) after the definition of "the Treaty" there is inserted--

" "the Tribunal" means the Competition Appeal Tribunal;

"Tribunal rules" means rules under section 15 of the Enterprise Act 2002. "

7 (1) Schedule 7 (the Competition Commission) is amended as follows.

(2) In paragraph 1 (interpretation)--

(a) the definitions of "appeal panel member" and "the President" shall cease to have effect; and

(b) in the definition of "general functions", paragraph (a) and the word "or" after it shall cease to have effect.

(3) In paragraph 2 (membership), sub-paragraphs (1)(a), (3)(a) and (4) shall cease to have effect.

(4) Paragraph 4 (the President) shall cease to have effect.

(5) In paragraph 5 (the Council)--

(a) sub-paragraph (2)(b), and

(b) in sub-paragraph (3), the words "and paragraph 5 of Schedule 8",

shall cease to have effect.

(6) Part 3 (appeals) shall cease to have effect.

8 (1) Schedule 8 (appeals) is amended as follows.

(2) Paragraph 1 shall cease to have effect.

(3) In paragraph 2 (general procedure for appeals under Part 1)--

(a) in sub-paragraph (1), for the words from "Competition" to "Commission" (in the second place it appears) there is substituted "Tribunal under section 46 or 47 must be made by sending a notice of appeal to it";

(b) in sub-paragraph (3), for "tribunal" there is substituted "Tribunal"; and

" (4) In this paragraph references to the Tribunal are to the Tribunal as constituted (in accordance with section 14 of the Enterprise Act 2002) for the purposes of the proceedings in question.

(5) Nothing in this paragraph restricts the power under section 15 of the Enterprise Act 2002 (Tribunal rules) to make provision as to the manner of instituting proceedings before the Tribunal. "

(4) In paragraph 3, for "tribunal" (in each place) there is substituted "Tribunal".

(5) Paragraphs 4 to 14 shall cease to have effect.

Section 70

SCHEDULE 6 Schedule to be inserted in the Water Industry Act 1991

Section 34

" SCHEDULE 4ZA Application of provisions of Enterprise Act 2002 to mergers of water enterprises

1 Part 3 of the 2002 Act (and any other provisions of that Act so far as relating to that Part) shall apply, with such prescribed modifications as the Secretary of State considers to be necessary or expedient, in relation to water mergers and merger references under section 32 of this Act as it applies in relation to relevant merger situations and references under Part 3 of that Act.

2 The modifications made by virtue of paragraph 1 above shall include modifications to give effect to paragraphs 3 to 6 below.

3 (1) The first questions to be decided by the Competition Commission on a merger reference under section 32(a) of this Act shall be--

(a) whether arrangements are in progress which, if carried into effect, will result in a water merger; and

(b) if so, whether that merger may be expected to prejudice the ability of the Director, in carrying out his functions by virtue of this Act, to make comparisons between different water enterprises.

(2) The first questions to be decided by the Competition Commission on a merger reference under section 32(b) of this Act shall be--

(a) whether a water merger has taken place; and

(b) if so, whether that merger has prejudiced, or may be expected to prejudice, the ability of the Director, in carrying out his functions by virtue of this Act, to make comparisons between different water enterprises.

(3) Any decision of the Competition Commission on a merger reference under section 32(a) of this Act that arrangements are in progress which, if carried into effect, will result in a water merger shall be treated as a decision that no arrangements are in progress which, if carried into effect, will result in a water merger if the decision is not that of at least two-thirds of the members of the group constituted in connection with the reference in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998 (c. 41).

(4) Any decision of the Competition Commission on a merger reference under section 32(a) of this Act that a water merger may be expected to prejudice the ability of the Director, in carrying out his functions by virtue of this Act, to make comparisons between different water enterprises shall be treated as a decision that the water merger may be expected not to prejudice that ability of the Director if the decision is not that of at least two-thirds of the members of the group constituted in connection with the reference in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.

(5) Any decision of the Competition Commission on a merger reference under section 32(b) of this Act that a water merger has taken place shall be treated as a decision that no water merger has taken place if the decision is not that of at least two-thirds of the members of the group constituted in connection with the reference in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.

(6) Any decision of the Competition Commission on a merger reference under section 32(b) of this Act that a water merger has prejudiced, or may be expected to prejudice, the ability of the Director, in carrying out his functions by virtue of this Act, to make comparisons between different water enterprises shall be treated as a decision that the water merger has not prejudiced, or may be expected not to prejudice, that ability of the Director if the decision is not that of at least two-thirds of the members of the group constituted in connection with the reference in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.

4 (1) In deciding, on a merger reference under section 32(a) of this Act whether to take action for the purpose of remedying, mitigating or preventing the prejudice to the Director or any adverse effect which may be expected to result from the prejudice to the Director and, if so, what action should be taken, the Competition Commission may, in particular, have regard to the effect of any such action on any relevant customer benefits in relation to the merger concerned provided that--

(a) a consideration of those benefits would not prevent a solution to the prejudice concerned; or

(b) the benefits which may be expected to accrue are substantially more important than the prejudice concerned.

(2) In deciding, on a merger reference under section 32(b) of this Act whether to take action for the purpose of remedying, mitigating or preventing the prejudice to the Director or any adverse effect which has resulted from, or may be expected to result from, the prejudice to the Director and, if so, what action should be taken, the Competition Commission may, in particular, have regard to the effect of any such action on any relevant customer benefits in relation to the merger concerned provided that--

(a) a consideration of those benefits would not prevent a solution to the prejudice concerned; or

(b) the benefits which have accrued, or may be expected to accrue, are substantially more important than the prejudice concerned.

(3) This paragraph is without prejudice to the power of the Secretary of State to provide in regulations made under paragraph 1 above for other matters to which the Competition Commission may or must have regard in deciding the questions as mentioned in sub-paragraph (1) or (2) above (including matters which are to take priority over the effect of action on relevant customer benefits).

5 (1) No enforcement action shall be taken on a merger reference under section 32(b) of this Act in respect of an actual merger unless the reference was made within the period of four months beginning with whichever is the later of--

(a) the day on which the merger took place; and

(b) the day on which the material facts about the transactions which resulted in the merger first came to the attention of the OFT or were made public (within the meaning given by section 24(3) of the 2002 Act).

(2) This paragraph is without prejudice to the power of the Secretary of State to provide in regulations made under paragraph 1 above for extensions of the four month period; and, if any such provision is made in such regulations, the provision which is to be made in regulations under paragraph 1 above by virtue of sub-paragraph (1) above or paragraph 6 below may be adjusted accordingly.

6 If, on a merger reference under section 32(b) of this Act, the Competition Commission are satisfied that the reference was not made within the period of four months mentioned in paragraph 5 above, its report on the reference shall state that fact.

7 (1) For the purposes of this Schedule a benefit is a relevant customer benefit if--

(a) it is a benefit to relevant customers in the form of--

(i) lower prices, higher quality or greater choice of goods or services in any market in the United Kingdom; or

(ii) greater innovation in relation to such goods or services; and

(b) the Competition Commission believes--

(i) in the case of a merger reference under section 32(a) of this Act, as mentioned in sub-paragraph (2) below; and

(ii) in the case of a merger reference under section 32(b) of this Act, as mentioned in sub-paragraph (3) below.

(2) The belief, in the case of a merger reference under section 32(a) of this Act, is that--

(a) the benefit may be expected to accrue within a reasonable period as a result of the merger concerned; and

(b) the benefit is unlikely to accrue without the merger concerned or a similar prejudice to the Director.

(3) The belief, in the case of a merger reference under section 32(b) of this Act is that--

(a) the benefit has accrued as a result of the merger concerned or may be expected to accrue within a reasonable period as a result of the merger concerned; and

(b) the benefit was, or is, unlikely to accrue without the merger concerned or a similar prejudice to the Director.

(4) In sub-paragraph (1) above "relevant customers" means--

(a) customers of any person carrying on an enterprise which, in the merger concerned, has ceased to be, or (as the case may be) will cease to be, a distinct enterprise;

(b) customers of such customers; and

and in this sub-paragraph "customers" includes future customers.

8 In this Schedule--

"customers", "goods", "market in the United Kingdom", "services" and "relevant merger situation" have the same meanings as in Part 3 of the 2002 Act; and
"water merger" means a merger of any two or more water enterprises. "

Section 85

SCHEDULE 7 Enforcement regime for public interest and special public interest cases

Pre-emptive undertakings and orders

1 (1) Sub-paragraph (2) applies where an intervention notice or special intervention notice is in force.

(2) The Secretary of State may, for the purpose of preventing pre-emptive action, accept from such of the parties concerned as he considers appropriate undertakings to take such action as he considers appropriate.

(3) Sub-paragraph (4) applies where an intervention notice is in force.

(4) The Secretary of State may, for the purpose of preventing pre-emptive action, adopt an undertaking accepted by the OFT under section 71 if the undertaking is still in force when the Secretary of State adopts it.

(5) An undertaking adopted under sub-paragraph (4)--

(a) shall continue in force, in accordance with its terms, when adopted;

(b) may be varied or superseded by an undertaking under this paragraph; and

(6) Any other undertaking under this paragraph--

(a) shall come into force when accepted;

(b) may be varied or superseded by another undertaking; and

(7) References in this Part to undertakings under this paragraph shall, unless the context otherwise requires, include references to undertakings adopted under this paragraph; and references to the acceptance or giving of undertakings under this paragraph shall be construed accordingly.

(8) An undertaking which is in force under this paragraph in relation to a reference or possible reference under section 45 or (as the case may be) 62 shall cease to be in force if an order under paragraph 2 or an undertaking under paragraph 3 comes into force in relation to that reference.

(9) An undertaking under this paragraph shall, if it has not previously ceased to be in force, cease to be in force when the intervention notice concerned or (as the case may be) special intervention notice concerned ceases to be in force.

(10) No undertaking shall be accepted by the Secretary of State under this paragraph before the making of a reference under section 45 or (as the case may be) 62 unless the undertaking relates to a relevant merger situation which has been, or may have been, created or (as the case may be) a special merger situation which has been, or may have been, created.

(11) The Secretary of State shall, as soon as reasonably practicable, consider any representations received by him in relation to varying or releasing an undertaking under this paragraph.

(12) In this paragraph and paragraph 2 "pre-emptive action" means action which might prejudice the reference or possible reference concerned under section 45 or (as the case may be) 62 or impede the taking of any action under this Part which may be justified by the Secretary of State's decisions on the reference.

2 (1) Sub-paragraph (2) applies where an intervention notice or special intervention notice is in force.

(2) The Secretary of State or the OFT may by order, for the purpose of preventing pre-emptive action--

(a) prohibit or restrict the doing of things which the Secretary of State or (as the case may be) the OFT considers would constitute pre-emptive action;

(b) impose on any person concerned obligations as to the carrying on of any activities or the safeguarding of any assets;

(c) provide for the carrying on of any activities or the safeguarding of any assets either by the appointment of a person to conduct or supervise the conduct of any activities (on such terms and with such powers as may be specified or described in the order) or in any other manner;

(d) do anything which may be done by virtue of paragraph 19 of Schedule 8.

(3) Sub-paragraph (4) applies where an intervention notice is in force.

(4) The Secretary of State or the OFT may, for the purpose of preventing pre-emptive action, adopt an order made by the OFT under section 72 if the order is still in force when the Secretary of State or (as the case may be) the OFT adopts it.

(5) An order adopted under sub-paragraph (4)--

(a) shall continue in force, in accordance with its terms, when adopted; and

(b) may be varied or revoked by an order under this paragraph.

(6) Any other order under this paragraph--

(a) shall come into force at such time as is determined by or under the order; and

(b) may be varied or revoked by another order.

(7) References in this Part to orders under this paragraph shall, unless the context otherwise requires, include references to orders adopted under this paragraph; and references to the making of orders under this paragraph shall be construed accordingly.

(8) An order which is in force under this paragraph in relation to a reference or possible reference under section 45 or (as the case may be) 62 shall cease to be in force if an undertaking under paragraph 1 or 3 comes into force in relation to that reference.

(9) An order under this paragraph shall, if it has not previously ceased to be in force, cease to be in force when the intervention notice concerned or (as the case may be) special intervention notice concerned ceases to be in force.

(10) No order shall be made by the Secretary of State or the OFT under this paragraph before the making of a reference under section 45 or (as the case may be) 62 unless the order relates to a relevant merger situation which has been, or may have been, created or (as the case may be) a special merger situation which has been, or may have been, created.

(11) The Secretary of State or (as the case may be) the OFT shall, as soon as reasonably practicable, consider any representations received by that person in relation to varying or revoking an order under this paragraph.

Undertakings in lieu of reference under section 45 or 62

3 (1) Sub-paragraph (2) applies if the Secretary of State has power to make a reference to the Commission under section 45 or 62 and otherwise intends to make such a reference.

(2) The Secretary of State may, instead of making such a reference and for the purpose of remedying, mitigating or preventing any of the effects adverse to the public interest which have or may have resulted, or which may be expected to result, from the creation of the relevant merger situation concerned or (as the case may be) the special merger situation concerned, accept from such of the parties concerned as he considers appropriate undertakings to take such action as he considers appropriate.

(3) In proceeding under sub-paragraph (2), the Secretary of State shall, in particular--

(a) accept the decisions of the OFT included in its report under section 44 so far as they relate to the matters mentioned in subsections (4) and (5) of that section; or

(b) (as the case may be) accept the decisions of the OFT included in its report under section 61 so far as they relate to the matters mentioned in subsections (3)(a) and (4) of that section.

(4) In proceeding under sub-paragraph (2) in relation to an anti-competitive outcome, the Secretary of State may, in particular, have regard to the effect of any action on any relevant customer benefits in relation to the creation of the relevant merger situation concerned.

(5) No undertaking shall be accepted by the Secretary of State under this paragraph in connection with a possible reference under section 45 if a public interest consideration mentioned in the intervention notice concerned has not been finalised and the period of 24 weeks beginning with the giving of that notice has not expired.

(6) The Secretary of State may delay making a decision as to whether to accept any such undertaking (and any related decision as to whether to make a reference under section 45) if he considers that there is a realistic prospect of the public interest consideration being finalised within the period of 24 weeks beginning with the giving of the intervention notice concerned.

(7) A delay under sub-paragraph (6) shall not extend beyond--

(a) the time when the public interest consideration is finalised; or

(b) if earlier, the expiry of the period of 24 weeks mentioned in that sub-paragraph.

(8) An undertaking under this paragraph--

(a) shall come into force when accepted;

(b) may be varied or superseded by another undertaking; or

(9) An undertaking under this paragraph which is in force in relation to a relevant merger situation or (as the case may be) a special merger situation shall cease to be in force if an order comes into force under paragraph 5 or 6 in relation to that undertaking.

(10) The Secretary of State shall, as soon as reasonably practicable, consider any representations received by him in relation to varying or releasing an undertaking under this section.

4 (1) The relevant authority shall not make a reference under section 22, 33 or 45 in relation to the creation of a relevant merger situation or (as the case may be) a reference under section 62 in relation to the creation of a special merger situation if--

(a) the Secretary of State has accepted an undertaking or group of undertakings under paragraph 3; and

(b) the relevant merger situation or (as the case may be) the special merger situation is the situation by reference to which the undertaking or group of undertakings was accepted.

(2) In sub-paragraph (1) "the relevant authority" means--

(a) in relation to a possible reference under section 22 or 33, the OFT; and

(b) in relation to a possible reference under section 45 or 62, the Secretary of State.

(3) Sub-paragraph (1) does not prevent the making of a reference if material facts about relevant arrangements or transactions, or relevant proposed arrangements or transactions, were not notified (whether in writing or otherwise) to the Secretary of State or the OFT or made public before any undertaking concerned was accepted.

(4) For the purposes of sub-paragraph (3) arrangements or transactions, or proposed arrangements or transactions, are relevant if they are the ones in consequence of which the enterprises concerned ceased or may have ceased, or may cease, to be distinct enterprises.

(5) In sub-paragraph (3) "made public" means so publicised as to be generally known or readily ascertainable.

5 (1) Sub-paragraph (2) applies where the Secretary of State considers that--

(a) an undertaking accepted by him under paragraph 3 has not been, is not being or will not be fulfilled; or

(b) in relation to an undertaking accepted by him under that paragraph, information which was false or misleading in a material respect was given to him or the OFT by the person giving the undertaking before he decided to accept the undertaking.

(2) The Secretary of State may, for any of the purposes mentioned in paragraph 3(2), make an order under this paragraph.

(3) Sub-paragraphs (3) and (4) of paragraph 3 shall apply for the purposes of sub-paragraph (2) above as they apply for the purposes of sub-paragraph (2) of that paragraph.

-- Back --

Stat