For announcement of referral see DTI Press Notice P/2000/194
20 March 2000
Stephen Byers & Gordon Brown refer supply Banking Services
by Clearing Banks to Small and Medium Sized Enterprises to the Competition
Commission
Terms of Reference
The Secretary of State for Trade and Industry and the Chancellor
of the Exchequer in exercise of their powers under sections
47(1), 49(1) and 51(1) of the Fair Trading Act 1973 hereby
refer to the Competition Commission the matter of the existence
or possible existence of a monopoly situation in relation
to the supply of banking services by clearing banks to small
and medium sized enterprises.
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 purposes of exploiting or maintaining the monopoly
situation and, if so, by what uncompetitive practices
or in what other way;
- whether any action or omission on the part of that person
or persons is attributable to the existence of that monopoly
situation and, if so, what act 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 report upon this reference within a period of 15 months from the date of this reference.
Investigations
Further information on Don Cruickshank's report is available
on the Banking Review website at www.bankreview.org.uk
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