On Nov. 29, UK GVT issued regulations on turnover-based penalties.
UK GVT published the Competition act 1998 (determination of turnover for penalties) regulations 2024 (StIn 2024/1235), made on Nov. 25, 2024.
On same day, UK GVT issued enterprise act 2002 penalties regulations, see #235590.
Follows UK GVT Jul. 2024 proposed DMCCA turnover and control regs, see #221361.
Purpose
Makes regs under ss 35B(9)-(11), 40A(10)-(12) of Competition act 1998 (1998 Act).
Section 35B was inserted in 1998 Act by Sch 11 to the Digital markets, competition and consumers act 2024 (2024 Act); s.40A was amended by Sch. 10 to the 2024 Act.
Section 35B of the Competition Act 1998 sets out the maximum penalties that UK CMA may impose under section 35A of that Act; section 40A of Competition act 1998 sets out the maximum penalties that UK CMA may impose under section 40ZE of that Act.
Sets out how UK CMA will calculate turnover for the enforcement of competition law.
Those sections provide for maximum penalties for a person who is an undertaking by reference to turnover/daily turnover of undertaking on whom the penalty is imposed.
The 2024 Act amends 1998 Act to allow UK CMA to impose an appropriate turnover-based penalty for failure to comply with an investigative requirement or for breaching a remedy (i.e., a commitment or direction) agreed or imposed under Pt 1 of 1998 Act.
Reg 2 and schedule determine the turnover and daily turnover of an undertaking.
Penalties are turnover-based, incl fixed penalty up to 1% of global turnover and/or a daily penalty up to 5% of daily global turnover for non-compliance with measures.
In addition to a fixed penalty of up to 5% of worldwide turnover and/or a daily penalty up to 5% of daily worldwide turnover for breaching a competition remedy.
