Legislation – The Competition Act 1998 (Dairy Produce) (Coronavirus) (Public Policy Exclusion) Order 2020

New Search

Introduction

1 Citation and commencement

2 Interpretation

3 Qualifying activities by dairy produce suppliers

4 Qualifying activities by logistics service providers

5 Exclusion from the Chapter I prohibition in relation to dairy produce suppliers

6 Exclusion from the Chapter I prohibition in relation to logistics service providers

7 End of dairy produce demand disruption period

8 Notification to the Secretary of State

9 Register of agreements

10 Expiry

Signature

Explanatory note

Exclusion from the Chapter I prohibition in relation to dairy produce suppliers5.

(1)

The Chapter I prohibition does not apply to an agreement2 which—

(a)

is between two or more dairy produce suppliers;

(b)

relates to a qualifying activity listed in article 3(2);

(c)

is notified to the Secretary of State in accordance with article 8(1); and

(d)

meets the conditions set out in paragraph (2).

(2)

The conditions referred to in paragraph (1)(d) are that—

(a)

the purpose of the agreement is to maximise the processing, transport and storage efficiency and the storage capacity of dairy produce and to prevent or mitigate the need for the disposal of milk resulting from a disruption in demand caused by a reason relating to coronavirus; and

(b)

the agreement does not have as its object or effect the prevention, restriction or distortion of competition within the United Kingdom, except in relation to qualifying activities set out in article 3(2) in a market for the provision of dairy produce in any part of the United Kingdom affected by a disruption in demand caused by a reason relating to coronavirus.

(3)

The Chapter I prohibition does not apply to an agreement which—

(a)

is between two or more dairy produce suppliers;

(b)

relates to a qualifying activity listed in article 3(3);

(c)

is notified to the Secretary of State in accordance with article 8(1); and

(d)

meets the conditions set out in paragraph (4).

(4)

The conditions referred to in paragraph (3)(d) are that—

(a)

the purpose of the agreement is to prevent or mitigate the need for the disposal of surplus milk or to limit the environmental impact of any disposal of surplus milk resulting from a disruption in demand caused by a reason relating to coronavirus; and

(b)

the agreement does not have as its object or effect the prevention, restriction or distortion of competition within the United Kingdom, except in relation to qualifying activities set out in article 3(3) in a market for the provision of dairy produce in any part of the United Kingdom affected by a disruption in demand caused by a reason relating to coronavirus.

(5)

The Chapter I prohibition is to be deemed never to have applied in relation to an agreement of the kind referred to in paragraph (1) or (3) which was made in the period beginning on 1st April 2020 and ending on the day before the day on which this Order comes into force.

2

Under section 59 of the Competition Act 1998 (interpretation) references in Part 1 of that Act to “agreement” are to be read with section 2(5) and (6) of the Act which provide that, unless the context otherwise requires, a provision of Part 1 of the Act which is expressed to apply to, or in relation to, an agreement is to be read as applying equally to, or in relation to, a decision by an association of undertakings or a concerted practice (but with any necessary modifications).