Made | 20th October 2004 | ||
Laid before Parliament | 25th October 2004 | ||
Coming into force | 17th November 2004 |
(2) In these Rules, any reference to:
(3) Except where these Rules otherwise provide, expressions used in the Act which are also used in these Rules have the same meaning in these Rules as they have in section 59 of the Act.
(4) Except in this rule and rule 20, any reference in these Rules to the OFT means the OFT or a regulator.
Application of the Rules
2.
- (1) Subject to paragraphs (2) and (3), these Rules apply when the OFT takes investigation or enforcement action under the Act in relation to any one or more of the Chapter I prohibition, the Chapter II prohibition, the prohibition in Article 81(1) and the prohibition in Article 82.
(2) Rule 11 on the cancellation etc. of an individual exemption, rule 12 on the cancellation etc. of a parallel exemption, rule 14 on the withdrawal of an exclusion, rule 15 on the termination of the transitional period and rule 16 on the application for extension of the transitional period apply only when the OFT takes investigation or enforcement action in relation to the Chapter I prohibition or the Chapter II prohibition.
(3) Rule 13 on the withdrawal of the benefit of a regulation of the Commission pursuant to Article 29(2) of the EC Competition Regulation applies only when the OFT takes investigation or enforcement action in relation to the prohibition in Article 81(1).
Legal advice during investigations and inspections
3.
- (1) An officer shall grant a request of the occupier of premises entered by the officer to allow a reasonable time for the occupier's legal adviser to arrive at the premises before the investigation continues, if the officer considers it reasonable in the circumstances to do so and if the officer is satisfied that such conditions as he considers it appropriate to impose in granting the occupier's request are, or will be, complied with.
(2) For the purposes of paragraph (1), "a reasonable time" means such period of time as the officer considers is reasonable in the circumstances.
(3) A person required by the OFT under section 26(6)(a)(ii) or (b) or section 65E(6)(a)(ii) or (b) of the Act to provide an explanation of a document in person may be accompanied by a legal adviser.
(4) In this rule, "officer" means an investigating officer within the meaning of section 27(1) or 65F(1) of the Act or a named officer of the OFT authorised by a warrant issued under section 28, 28A, 65G or 65H of the Act.
Statement of objections
4.
- (1) If the OFT proposes to make an infringement decision -
(2) Subject to rules 17 and 18, the notice referred to in paragraph (1)(a) must be given to each person who the OFT considers is a party to the agreement, or is engaged in conduct, which the OFT considers infringes one or more of the prohibitions mentioned in paragraph (1)(a).
Notices, access to file and representations
5.
- (1) In this rule -
(2) A notice shall state:
(3) The OFT shall give a relevant person a reasonable opportunity to inspect the documents in the OFT's file that relate to the matters referred to in a notice given to that relevant person, except that the OFT may withhold any document -
(4) Where, in written representations on the matters referred to in a notice given to a relevant person, that relevant person states that he wishes to make oral representations to the OFT on such matters, the OFT shall give that relevant person a reasonable opportunity to make such oral representations.
(5) Where, upon the expiry of the period mentioned in paragraph (2)(c), no written representations on the matters referred to in a notice given to a relevant person have been made by that relevant person, the OFT may proceed with the case in the absence of such representations.
(6) Where the OFT has given a relevant person a reasonable opportunity to make oral representations under paragraph (4) but no oral representations have been made, the OFT may proceed with the case in the absence of such representations.
(7) Paragraph (2)(b) is not to be construed as restricting the application of rule 6(1) and (2).
Confidential information
6.
- (1) Where a person who has supplied information to the OFT has made representations to the OFT identifying such information as being information that the OFT should treat as confidential information and the OFT proposes to disclose such information under these Rules, the OFT shall take all reasonable steps to -
(2) The OFT may at any time request a person who has supplied information to the OFT to make written representations to the OFT in respect of the information supplied -
(3) If a person who has supplied information to the OFT makes written representations to the OFT in respect of the information supplied identifying the information which that person considers the OFT should treat as confidential information or explaining why he considers the OFT should treat the information as confidential information, whether or not such representations are made under this rule, the OFT may seek from that person such further clarification as the OFT considers is needed.
(4) If the OFT requests any person to make representations or to give further clarification under this rule, the OFT may specify the period within which such representations or further clarification should be made.
(5) For the purposes of this rule, where, in the OFT's opinion, information supplied to the OFT by any person relates to or originates from another person, that other person may be treated as a person who has supplied the information to the OFT.
Notice of decision
7.
- (1) Where the OFT has made an infringement decision, it shall without delay -
(2) Where the OFT has made a decision that there are no grounds for action in respect of -
the OFT shall without delay, subject to rules 17 and 18, give notice of the decision, to any person whom it has undertaken to inform of the decision and to any person in respect of whom the OFT or an officer has exercised any of the powers of investigation in the Act, stating the facts on which the OFT bases the decision and the OFT's reasons for making the decision.
(3) Where the OFT is required to give notice of a decision under paragraph (2), it may publish the decision.
(4) In this rule, "officer" has the same meaning as in rule 3.
Directions and penalties
8.
- (1) Where the OFT gives a direction to a person under section 32 or 33 of the Act, it shall at the same time inform that person in writing of the facts on which it bases the direction and its reasons for giving the direction.
(2) Where the OFT requires an undertaking to pay a penalty under section 36 of the Act, it shall at the same time inform that undertaking in writing of the facts on which it bases the penalty and its reasons for requiring that undertaking to pay the penalty.
(3) The OFT shall publish directions given under section 32 or 33 of the Act.
(4) The OFT shall publish penalties imposed under section 36 of the Act.
Interim measures
9.
- (1) Subject to paragraph (2), if the OFT proposes to give a direction under section 35 of the Act, it shall give each person to whom it proposes to give the direction a reasonable opportunity to inspect the documents in the OFT's file relating to the proposed direction.
(2) The OFT may withhold any document -
(3) When giving a person an opportunity to make representations under section 35(3)(b) of the Act, the OFT shall specify the period within which that person may make such representations.
(4) Where the OFT gives a direction to a person under section 35 of the Act, it shall at the same time inform that person in writing of the facts on which it bases the direction and its reasons for giving the direction, and it shall publish the direction.
Election to apply a relevant prohibition to a case
10.
- (1) The OFT may, at any time prior to making an infringement decision, elect to apply to a case one or more of the Chapter I prohibition, the Chapter II prohibition, the prohibition in Article 81(1) and the prohibition in Article 82 (whether or not any such election has previously been made by the OFT in that case).
(2) If the OFT proposes -
the provisions of rules 4 and 5 shall apply to the extent that they have not already been applied.
(3) In paragraph (2), "any notice given under rule 4" means any notice given under rule 4 that has not been superseded by a subsequent notice given under rule 4.
Cancellation etc. of an individual exemption
11.
- (1) If the OFT proposes to take any of the steps mentioned in section 5(1) of the Act[4], it shall consult the public, the applicant and, subject to rules 17 and 18, the other parties to the agreement.
(2) If the OFT decides to take any of the steps mentioned in section 5(1) of the Act, it shall -
stating the facts on which the OFT bases the decision and the OFT's reasons for the decision; and
(b) publish the decision.
(3) In this rule -
Cancellation etc. of a parallel exemption
12.
- (1) The circumstances in which the OFT may exercise the powers in section 10(5)(a), 10(5)(c) and 10(5)(d) of the Act are where it finds that an agreement which benefits from a parallel exemption nevertheless has effects in the United Kingdom, or a part of it, which are incompatible with the conditions laid down in section 9(1) of the Act.
(2) The circumstances in which the OFT may exercise the powers in section 10(5)(b) of the Act are where, having previously exercised the powers in section 10(5)(a) or 10(5)(c) of the Act in respect of an agreement, the OFT finds that -
(3) Subject to rules 17 and 18, if (other than in the circumstances referred to in paragraph (2)(a)) the OFT proposes to exercise any of the powers in section 10(5) of the Act it shall give notice to each person who it considers is a party to the agreement and the provisions of rule 5 shall apply.
(4) Subject to rules 17 and 18, if the OFT proposes to exercise any of the powers in section 10(5)(b) of the Act in the circumstances referred to in paragraph (2)(a) it shall consult each person who it considers is a party to the agreement.
(5) If the OFT proposes to exercise any of the powers in section 10(5) of the Act it may consult the public.
(6) If the OFT has made a decision in exercise of any of its powers in section 10(5) of the Act it shall -
Withdrawal of the benefit of a Commission Regulation pursuant to Article 29(2) of the EC Competition Regulation
13.
- (1) Subject to rules 17 and 18, if the OFT proposes, in any particular case, to withdraw in the whole or any part of the United Kingdom the benefit of a Commission Regulation pursuant to Article 29(2) of the EC Competition Regulation, it shall give notice to each person who the OFT considers is a party to the agreement, and the provisions of rule 5 shall apply.
(2) If the OFT proposes to exercise its powers under Article 29(2) of the EC Competition Regulation it may consult the public.
(3) If the OFT has made a decision withdrawing in the whole or any part of the United Kingdom the benefit of a Commission Regulation pursuant to Article 29(2) of the EC Competition Regulation it shall -
Withdrawal of an exclusion
14.
- (1) Subject to rules 17 and 18, if the OFT proposes to give a direction under paragraph 4 of Schedule 1 to the Act or paragraph 2 or 9 of Schedule 3 to the Act, or in accordance with an order made under section 50 of the Act, to the effect that an exclusion made by a provision specified in paragraph (2) does not apply to an agreement, it shall consult each person who it considers is a party to the agreement.
(2) The provisions specified for the purposes of paragraph (1) are -
(3) The period specified for the purposes of paragraph 4(4) of Schedule 1 to the Act and paragraphs 2(6) and 9(6) of Schedule 3 to the Act is ten working days starting with the date the notice is given.
(4) If the OFT has given a direction referred to in paragraph (1), it shall publish the direction.
Termination of the transitional period
15.
- (1) Subject to rules 17 and 18, if the OFT proposes to give a direction under paragraph 37 of Schedule 13 to the Act terminating the transitional period for an agreement, it shall consult each person who it considers is a party to the agreement.
(2) For the purposes of paragraph 38(2) of Schedule 13 to the Act, the period is ten working days starting with the date on which the person in question receives the requirement to give information to the OFT.
(3) The OFT shall publish a direction given under paragraph 37 of Schedule 13 to the Act after the date on which the direction takes effect; if the direction is revoked, it shall publish a notice of that fact.
Application for extension of the transitional period
16.
- (1) An application under paragraph 36 of Schedule 13 to the Act for the extension of the transitional period shall -
(2) An application submitted under paragraph (1) shall -
(c) specify the length of the transitional period, the date of its expiry and the period of extension applied for.
(3) The documents specified for the purposes of paragraph (1) are the following -
(4) If the OFT -
it shall give notice of its decision to the applicant not less than one month before the date of expiry of the transitional period, specifying, if appropriate, the period of extension granted.
(5) Subject to rules 17 and 18, if the OFT extends the transitional period on its own initiative, it shall give notice of its decision to each person who it considers is a party to the agreement, specifying the period of extension granted.
(6) Where a joint application is submitted, the application shall be submitted by or on behalf of all of the applicants, and a joint representative may be appointed as authorised to act on behalf of some or all of the applicants for the purposes of this rule.
(7) Subject to paragraph (8), the application shall be correct and complete.
(8) The OFT may, by giving notice to the applicant, dispense with the obligation to submit any particular information, including any supporting document required by this rule for an application under paragraph 36 of Schedule 13 to the Act, if it considers that such information or document is unnecessary for the examination of the application.
(9) Where the applicant knows of material changes in the information contained in the application he shall without delay communicate those changes to the OFT.
(10) An application is made on the date on which the application is received by the OFT.
(11) The OFT shall acknowledge receipt of an application by giving notice to the applicant without delay.
(12) If the OFT extends the transitional period, it shall publish a notice of that fact, specifying the period of extension granted.
Associations of undertakings
17.
- (1) Where a rule requires the OFT to give notice of any matter to an association of undertakings the OFT shall give such notice to the director, secretary, manager or other similar officer of the association on its behalf.
(2) Where a rule requires the OFT to give notice of any matter to each of more than twenty members of an association of undertakings, the OFT may, instead of giving such notice to any such member, give such notice to the director, secretary, manager or other similar officer of the association on that member's behalf.
Time limits and giving notice
18.
- (1) Where -
the OFT may, instead, take all the steps mentioned in paragraph (2).
(2) The steps mentioned for the purposes of paragraph (1) are the following -
(3) The persons mentioned for the purposes of paragraph (1) are the following -
(4) Except where paragraph (1) is applied, where these Rules allow or require notice to be given to a person, such notice shall be treated as having been given on the date on which that person receives it.
(5) Where paragraph (1) is applied, the notice shall be treated as having been given on the date of its publication in accordance with paragraph (2).
(6) Any notice given under these Rules must be in writing.
(7) Where the time prescribed by these Rules for doing any act expires on a day which is not a working day, the act is in time if done at or before 5.30 p.m. on the next following working day.
(8) Where an act done in accordance with these Rules is done on a day which is not a working day, or after 5.30 p.m. on a working day, the act shall be treated as done on the next following working day.
(9) In this rule, "the other parties to the agreement" has the same meaning as in rule 11.
Third party appeals
19.
- (1) An application in relation to a decision made before 20 June 2003 under section 47(1) of the Act, asking the OFT to withdraw or vary a decision shall -
(2) An application submitted under paragraph (1) shall be signed by the applicant, or by a duly authorised representative of the applicant, and shall state the applicant's reasons -
(3) The documents specified for the purposes of paragraph (1) are the following -
(4) An application is made on the date on which it is received by the OFT.
(5) The OFT shall acknowledge receipt of an application by giving notice to the applicant without delay.
(6) Where the applicant knows of any material change in the information contained in the application he shall without delay communicate that change to the OFT.
(7) Subject to rules 17 and 18, if the OFT proposes to grant the application it shall consult all persons whom it was required to notify of the decision referred to in paragraph (1).
(8) If the OFT grants the application, it shall give notice of its decision -
stating in the notice the facts on which it bases the decision and its reasons for the decision.
(9) Where the OFT is required to give notice of a decision under paragraph (8) it shall publish the decision.
(10) For the purpose of this rule, the reference in paragraph (1) to section 47(1) of the Act is to be construed as a reference to section 47(1) of the Act as preserved by article 5 of the Enterprise Act 2002 (Commencement No 3, Transitional and Transitory Provisions and Savings) Order 2003[5].
Public register
20.
- (1) The OFT shall maintain a register in which there shall be entered -
(2) The register shall be open to public inspection -
Consultation
21.
- (1) Where the OFT, if it proposes to take action, is required to consult a person under these Rules, it shall -
(2) Where the OFT, if it proposes to take action -
it shall publish a notice stating the action it proposes to take, its reasons for proposing such action and the period within which written representations may be made to the OFT on these matters.
[4] Section 5 of the Act has been repealed by article 4 of the Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261) with effect from 1st May 2004 but by virtue of article 6(3) of those Regulations it will continue in effect while any individual exemption has effect.back