The Competition (Amendment etc.) (EU Exit) Regulations 2019

JurisdictionUK Non-devolved
CitationSI 2019/93

2019No. 93

EXITING THE EUROPEAN UNION

COMPETITION

The Competition (Amendment etc.) (EU Exit) Regulations 2019

Made22ndJanuary2019

Coming into force in accordance with regulation 1(1)

The Secretary of State makes these Regulations in exercise of the powers conferred by section 8(1) of, paragraph 1(1) of Schedule 4 to, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018( 1).

In accordance with paragraph 3(1) of Schedule 4 to that Act, these Regulations are made with the consent of the Treasury.

In accordance with paragraphs 1(1) and 12(1) of Schedule 7 to that Act, a draft of this instrument has been laid before Parliament and approved by a resolution of each House of Parliament.

PART 1

Introduction

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Competition (Amendment etc.) (EU Exit) Regulations 2019 and come into force on exit day.

(2) An amendment, repeal or revocation made by these Regulations has the same extent as the provision to which it relates.

(3) Transitional or saving provision made by these Regulations has the same extent as the provision to which it relates.

PART 2

Amendment of the Competition Act 1998

2. The Competition Act 1998( 2) is amended as follows.

3.—(1) Section 10( 3) is amended as follows.

(2) In the heading, for “Parallel exemptions” substitute “Retained exemptions”.

(3) Before subsection (1) insert—

“(A1) An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in a retained block exemption regulation.”.

(4) Omit subsections (1) and (2).

(5) In subsection (3), for “parallel exemption” substitute “retained exemption”.

(6) In subsection (4)—

(a) for “parallel exemption” substitute “retained exemption”;

(b) omit paragraph (a) (together with the final “and”);

(c) in paragraph (b), for “exemption from the Community prohibition” substitute “retained block exemption regulation”.

(7) In subsection (5)—

(a) in paragraph (a)—

(i) for “parallel exemption” substitute “retained exemption”;

(ii) after “effect” insert “in respect of an agreement”;

(b) in paragraph (d), after “exemption” insert “in respect of an agreement”.

(8) Omit subsections (9) to (11).

(9) After subsection (11), insert—

“(12) In this Part, “retained block exemption regulation” means the following regulations as amended from time to time—

(a) Council Regulation (EC) 169/2009 applying rules of competition to transport by rail, road and inland waterway;

(b) Commission Regulation (EC) 906/2009 on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia);

(c) Commission Regulation (EU) 330/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices;

(d) Commission Regulation (EU) 461/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector;

(e) Commission Regulation (EU) 1217/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of research and development agreements;

(f) Commission Regulation (EU) 1218/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to certain categories of specialisation agreements;

(g) Commission Regulation (EU) 316/2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements.”.

4. After section 10 insert—

“10A Power to vary etc retained block exemption regulations

(1) The Secretary of State may by regulations vary or revoke a retained block exemption regulation.

(2) In exercising the power under subsection (1), the Secretary of State must have regard to the conditions specified in section 9(1) for exemption from the Chapter 1 prohibition.

(3) If, in the opinion of the CMA, it is appropriate to vary or revoke a retained block exemption regulation, the CMA may make a recommendation to that effect to the Secretary of State.

(4) Before making a recommendation under subsection (3), the CMA must—

(a) publish details of its proposed recommendation in such a way as it thinks most suitable for bringing it to the attention of those likely to be affected; and

(b) consider any representations about it which are made to it.

(5) Before exercising the power to vary or revoke a retained block exemption regulation (in a case where there has been no recommendation under subsection (3)), the Secretary of State must—

(a) inform the CMA of the proposed variation or revocation; and

(b) take into account any comments made by the CMA.”.

5. Omit section 11( 4).

6.—(1) Section 25( 5) is amended as follows.

(2) Omit subsections (3), (5) and (7).

(3) In subsection (8)(a), for “parallel exemption” substitute “retained exemption”.

(4) Omit subsection (9).

(5) In subsection (10), for “parallel exemption” substitute “retained exemption”.

(6) Omit subsection (11).

(7) In subsection (12), omit “or (7)”.

7. In section 25A(1)(b)( 6), for “subsections (2) to (7)” substitute “subsections (2), (4) and (6)”.

8. In section 31(2)( 7)

(a) at the end of paragraph (a), insert “or”;

(b) omit paragraphs (c) and (d).

9. In section 32(1)( 8), omit “or that it infringes the prohibition in Article 101(1)”.

10. In section 33(1)( 9), omit “or that it infringes the prohibition in Article 102”.

11. In section 35( 10)

(a) in subsection (1), for “subsections (8) and (9)” substitute “subsection (8)”;

(b) in subsection (6), for “section 25(2), (3), (6) and (7)” substitute “section 25(2) and (6)”;

(c) in subsection (7), for “section 25(4) and (5)” substitute “section 25(4)”;

(d) omit subsection (9).

12. In section 36( 11)

(a) in subsection (1), omit “or that it has infringed the prohibition in Article 101(1)”;

(b) in subsection (2), omit “or that it has infringed the prohibition in Article 102”;

(c) in subsection (7A)(b)—

(i) in sub-paragraph (i), omit “or the prohibition in Article 81(1)”;

(ii) in sub-paragraph (ii), omit “or the prohibition in Article 82”.

13. In section 38( 12)

(a) in subsection (1), for the words from “the Chapter 1 prohibition” to the end substitute “the Chapter 1 prohibition or the Chapter 2 prohibition.”;

(b) omit subsection (1A);

(c) omit subsections (9) and (10).

14. In section 46(3)( 13)

(a) omit paragraphs (b) and (d);

(b) in paragraph (e), for “parallel exemption” substitute “retained exemption”;

(c) omit paragraph (f).

15. In section 47(1)(a)( 14), for “paragraphs (a) to (f)” substitute “paragraph (a), (c) or (e)”.

16.—(1) Section 47A( 15) is amended as follows.

(2) In subsection (2)—

(a) at the end of paragraph (a), insert “or”;

(b) omit paragraphs (c) and (d).

(3) For subsection (6) substitute—

“(6) In this Part (except in section 49C) “infringement decision” means—

(a) a decision of the CMA that the Chapter I prohibition or the Chapter II prohibition has been infringed, or

(b) a decision of the Tribunal on an appeal from the decision of the CMA that the Chapter I prohibition or the Chapter II prohibition has been infringed.”.

17. In section 49C(11)( 16), for the definition of “infringement decision” (but not the final “and”) substitute—

““infringement decision” means a decision of the CMA that the Chapter I prohibition or the Chapter II prohibition has been infringed,”.

18. In section 52, omit subsection (1A)( 17).

19.—(1) Section 58(2)( 18) is amended as follows.

(2) In the definition of “Part I proceedings”—

(a) at the end of paragraph (za), insert “or”;

(b) omit paragraph (b) and the “or” before it.

(3) In the definition of “relevant party”—

(a) in paragraph (a), omit “or the prohibition in Article 101(1)”;

(b) in paragraph (b), omit “or the prohibition in Article 102”.

20. In section 58A( 19), omit subsection (4).

21.—(1) Section 59(1)( 20) is amended as follows.

(2) Omit the definitions of—

(a) “Article 101(1)”;

(b) “Article 101(3)”;

(c) “Article 102”;

(d) “the Commission”;

(e) “the Council”;

(f) “the EEA Agreement”;

(g) “the European Court”;

(h) “the EC Competition Regulation”;

(i) “parallel exemption”;

(j) “section 11 exemption” (including the final “and”);

(k) “the Treaty”.

(3) In the definition of “the court”, for “60” substitute “60A”.

(4) At the appropriate places, insert—

““retained block exemption regulation” has the meaning given in section 10(12);”;

““retained exemption” has the meaning given in section 10(3);”.

22. Omit section 60( 21).

23. After section 60 insert—

60A Certain principles etc to be considered or applied from exit day

(1) This section applies when one of the following persons determines a question arising under this Part in relation to competition within the United Kingdom—

(a) a court or tribunal;

(b) the CMA;

(c) a person acting on behalf of the CMA in connection with a matter arising under this Part.

(2) The person must act (so far as is compatible with the provisions of this Part) with a view to securing that there is no inconsistency between—

(a) the principles that it applies, and the decision that it reaches, in determining the question, and

(b) the principles laid down by the Treaty on the Functioning of the European Union and the European Court before exit day, and any relevant decision made by that Court before exit day, so far as applicable immediately before exit day in determining any corresponding question arising in EU law,

subject to subsections (4) to (7).

(3) The person must, in addition, have regard to any relevant decision or statement of the European Commission made before exit day and not withdrawn.

(4) Subsection (2) does not require the person to secure that there is no inconsistency with a principle or decision referred to in subsection (2)(b) so far as the principle or decision is excluded from the law of England and...

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