For the announcement of referral see OFT Press Notice No 07/00
3 February 2000
Supply of Milk in Scotland referred to the Competition Commission
Terms of Reference
The Director General of Fair Trading in the exercise of his powers under
sections 9(1), 10(3), 10(4), 47(1), 49(1) and 50(1) of the Fair Trading
Act 1973 hereby refers to the Competition Commission the matter of the
existence or possible existence of a monopoly situation in relation to
the supply of fresh processed milk to middle-ground retailers.
The Commission shall investigate and report on the questions whether
a monopoly situation exists and, if so:
- by virtue of which of the provisions of sections 6 to 8 of the said
Act that monopoly situation is to be taken to exist;
- in favour of what person or persons that monopoly situation exists;
- whether any steps (by way of uncompetitive practices or otherwise)
are being taken by that person or persons for the purpose of exploiting
or maintaining the monopoly situation and, if so, by what uncompetitive
practices or in what other way;
- whether any action or mission on the part of that person or persons
is attributable to the existence of that monopoly situation and, if
so, what action or omission and in what way it is so attributable;
and
- whether any facts found by the Commission in pursuance of their investigations
under the preceding provisions of this paragraph operate or may be
expected to operate against the public interest.
The Commission shall limit their consideration to Scotland.
The Commission shall report upon this reference within a period of nine
months from the date hereof.
For the purpose of this reference:
"fresh processed milk" means liquid cows' milk processed otherwise
than by UHT or by sterilisation;
"middle-ground retailer" means a retailer other than:
- ASDA Group plc, Marks & Spencer plc, Safeway plc, J Sainsbury
plc, Somerfield Stores plc, Tesco plc and each of their subsidiaries
, and
- a retailer whose sole business is
(i) the delivery of fresh processed milk; or
(ii) the delivery of fresh processed milk and other goods -
to households.
"subsidiary" has the meaning given by section 736(1) of the
Companies Act 1985 as substituted by section 144(1) of the Companies
Act 1989.
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