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Statutory Orders and Undertakings

Under the Fair Trading Act 1973 (“1973 Act”) (which has been superseded by the Enterprise Act 2002) the Secretary of State had powers to refer qualifying merger and monopoly situations to the Competition Commission for investigation. The Secretary of State also had the power to accept statutory undertakings in lieu of such a reference and the powers to supersede, vary or release such undertakings.

Where cases were referred, and the Competition Commission subsequently reported that such merger or monopoly situations were detrimental to the public interest, a range of remedies were available to the Secretary of State. These included the power to accept undertakings or make orders designed to remedy or prevent such detrimental effects together with powers to supersede, vary or release any of these undertakings, and to vary or revoke any of the orders made.

The Enterprise Act 2002 provided for the continued enforcement of undertakings and orders made under the 1973 Act as well as responsibility for enforcement of these to be transferred by order to the competition authorities. The Government has made four orders transferring to the competition authorities responsibility for such undertakings and orders.

Transfer Orders

The first transfer order was made in 2004.

SI 2004 No 2181, which came into force 4 October 2004, transferred to the Competition Commission 27 merger undertakings and 10 undertakings relating to monopoly situations.

SI 2006 No 355 transfers to the Competition Commission 16 merger undertakings and 5 undertakings relating to monopoly situations together with two orders the Government made in 2005.

SI 2006 No 354 transfers to the Office of Fair Trading (OFT) 16 merger undertakings accepted in lieu of a reference to the Competition Commission.

SI 2006 No 3095 transfers 15 merger and 1 monopoly undertakings to the Competition Commission and a further 6 merger undertakings to the OFT.

Released  Undertakings 

Following advice from the Office of Fair Trading, the Secretary of State is releasing ten other merger undertakings accepted under the Fair Trading Act 1973 that are no longer required. They are: 

1. The undertakings accepted by Granada Group PLC, Rental Holdings PLC and Box Clever Technology LTD on the merger in June 2000.

2. The undertakings accepted by France Telecom SA in relation to its acquisition of interests in NTL Incorporated in May 2000.

3. The undertakings accepted by National Data Corporation on its acquisition of the John Richardson Computer Division of Taylor Nelson Sofres PLC of April 1999.

4. The undertakings accepted by Tomkins PLC following the MMC report of 23 April 1998 on the acquisition of certain enterprises from the Kerry Group PLC.

5. The undertakings accepted by Kemira Oy following the MMC report of 23 January 1991 on the proposed acquisition of Imperial Chemical Industries PLC nitrogenous fertilizer business.

6. The undertakings accepted by CHC Scotia Ltd (formerly Bond Helicopters LTD) following the MMC report of 16 September 1992 on the proposed acquisition of British International Helicopters.

7. The undertakings accepted by Enodis (formerly S&W Berisford) following an MMC report of 25 March 1981 on the proposed merger with British Sugar Corporation.

8. The undertakings accepted by Great Universal Stores PLC following a report by the MMC on 17 November 1982 on the proposed merger with Empire Stores (Bradford) PLC.

9. The undertakings accepted by Stagecoach Holdings PLC and the Porterbrook Companies in 23 December 1996 on the merger.

10. The undertakings accepted by Rockware Group Ltd and United Glass Ltd following a report by the MMC in May 1978 on the proposed merger with Redfearn National Glass Ltd.