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Market investigation reference guidance published

PN 24/03     12 March 2003

Guidance on when markets will be referred to the Competition Commission for investigation under the Enterprise Act has been published by the OFT.

Download Market investigation references (pdf file 1,053 kb).

The Enterprise Act allows the OFT to make such references where it suspects that the structure of the market or conduct of suppliers, purchasers, or customers is harming competition. This will replace the current Fair Trading Act provisions which relate to 'monopolies'.

The Enterprise Act gives the Competition Commission a duty to remedy any adverse effects on competition identified in market investigations, without ministerial involvement except in specified public interest cases (currently only national security). This replaces the current provision under which the Competition Commission makes recommendations but only ministers can decide on remedies.

This guidance follows public consultation which was started in July 2002.

NOTES

1. Part 4 of the Enterprise Act 2002 relates to market investigation references to the Competition Commission. Part 4 is expected to come into force in the summer of 2003.  It will replace the current provisions for monopoly references in the Fair Trading Act 1973.

2. References to the Competition Commission are one of a range of possible actions by the OFT. The Competition Act 1998 will continue to be used to investigate suspected anti-competitive agreements and abuses of a dominant market position.  Where markets appear not to be working will for consumers but enforcement action (or an immediate reference to the Competition Commission) does not appear, initially, to be the appropriate response, an OFT market investigation may be undertaken.

3. Certain sectoral regulators will have concurrent powers with the OFT to make market investigation references. They are:

• Director General of Telecommunications
• Gas and Electricity Markets Authority
• Director General of Water Services
• Director General of Electricity Supply for Northern Ireland
• the Rail Regulator
• Director General of Gas for Northern Ireland
• Civil Aviation Authority

4. Market investigation references guidance (pdf file 208 kb). It can also be ordered from the Publications section of this website, where it is listed under 'Business leaflets/Enterprise Act'.

5. The OFT published a consultation document on market investigation references in July 2002. Download the summary of responses to the consultation (pdf file 25 kb)

6. In November 2002 the OFT published 'Overview of the Enterprise Act – The competition and consumer provisions'. This can be downloaded, along with other Enterprise Act publications, from the Enterprise Act area of the site.

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