Fair Trading Act

Most of the OFT's powers under the Fair Trading Act (FTA) were repealed with the commencement of the Enterprise Act on 1 April and 20 June 2003. This page describes only those parts of the FTA that have ongoing effect.

Monopolies 

Under the Fair Trading Act, the OFT, sector regulators and the Secretary of State were each able to refer monopolies to the Competition Commission for investigation. The power to make monopoly references has been repealed, and OFT has been granted a power to make market investigation references in the Enterprise Act.

Following a monopoly reference, the CC was asked to determine whether a monopoly situation existed and, if so, whether it operated or might be expected to operate against the public interest. It reported on its findings to the Secretary of State for Trade and Industry, who was responsible for deciding what steps, if any, should be taken to remedy any problems found.

The OFT was often asked by the Secretary of State to negotiate appropriate undertakings from the firm or firms concerned, and the OFT has an ongoing duty, which continues in force, to monitor and review these undertakings. The Secretary of State could also make an Order which, again, the OFT monitors and reviews.

Publication of advice

It has been the OFT's normal practice to publish its advice to the Secretary of State on monopoly investigation reports. The OFT will continue to publish both this advice, and any future advice given when it reviews undertakings and recommends variations to them. This can be found on the Register of Orders and Undertakings.

Mergers

The main regime for UK mergers is now given in the Enterprise Act.

In a number of historic merger cases the Secretary of State had accepted undertakings in order to remedy the problems which had been identified. The Secretary of State has, by way of  various Statutory Instruments, now assigned these undertakings to either the Competition Commission, (post Competition Commission report undertakings) the OFT (undertakings in lieu of reference) or in certain cases retained them (public interest undertakings)as the relevant authority with powers to vary or revoke them. As with monopoly undertakings, the OFT has an ongoing responsibility to monitor these undertakings, and will advise the relevant authority from time to time as to whether they can be varied or revoked. As with monopoly undertakings, the OFT's advice will usually be published.

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