HC Deb 26 March 1981 vol 1 cc380-1W
Mr. Douglas

asked the Secretary of State for Trade (1) if he will define what constitutes a "local market" for the purpose of investigations into anti-competitive practices and the existence of local monopolies;

(2) pursuant to the reply of the hon. Member for Pudsey (Mr. Shaw) to the hon. Member for St. Pancras, North (Mr. Stallard) Official Report, 5 February, column 210, if he will advise local authorities to refer proposed developments of large new stores to the Director General of Fair Trading, in order to establish whether the proposed development would be anti- competitive as defined in section 2(1) of the Competition Act 1980;

(3) pursuant to the reply of the hon. Member for Pudsey (Mr. Shaw) to the hon. Member for St. Pancras, North (Mr. Stallard) Official Report, 5 February, column 210, if he will issue guidance to local authorities to use the provisions of the Competition Act 1980 in order to prevent a change of use of shop premises which may result in a less competitive local market;

(4) in view of the fact that large new stores may gain more than 25 per cent. of the trade in a local market and can thereby act as local monopolists, if he will refer proposed developments of hypermarkets and superstores to the Director General of Fair Trading to obtain an assessment of their potential competitive impact.

Mrs. Sally Oppenheim

Monopoly references and investigations of anti-competitive practices are a matter for the Director General of Fair Trading. Under the competition legislation he may limit a monopoly reference to a part of the United Kingdom; it will depend on circumstances whether it is appropriate to do so. An investigation of an anti-competitive practice may also be limited to a practice, the effects of which are confined to a part of the United Kingdom

However, the legislation allows the Director General to exercise his powers only where it appears to him that a monopoly situation already exists or that an anticompetitive practice has been or is being pursued. Proposed developments are not covered by the legislation.