§ Mr. Leighasked the Secretary of State for Trade and Industry whether the undertakings given by Rank Xerox following the Monopolies and Mergers Commission report on indirect electrostatic reprographic equipment have been reviewed.
§ Mr. Alexander FletcherFollowing publication of the MMC report on indirect electrostatic reprographic equipment—Plain Paper Copiers—in 1976 Rank Xerox gave a number of undertakings to the then Secretary of State. The Director General has recently reviewed these undertakings and has recommended that Rank Xerox should be released from some of them, that some should be simplified and that others should remain unchanged.
The undertakings which the Director General recommended should not remain in force are an undertaking to offer copiers for sale as well as for rent, and an undertaking to inform the Director General in advance of any alterations to its discount plan for large rental customers. An undertaking to provide a list of licencees of Rank Xerox's United Kingdom patents was fulfilled in 1980. The Director General considers that these undertakings are no longer necessary in view of the increased competitiveness of the market.
The undertakings which the Director General feels should be altered slightly concern the supply of toner. The Director General considers that Rank Xerox's undertaking to allow customers to purchase toner separately from copiers and other undertakings regarding toner, should be retained. However, he recommended that the wording of these undertakings should be simplified and a revised formulation has been agreed with Rank Xerox. The undertakings which the Director General recommended should remain unchanged are an undertaking to provide the Director General with the necessary information to allow him to monitor the undertakings and undertakings regarding the running of the Xerox's copy bureaux.
My right hon. Friend has accepted the Director General's recommendations regarding these undertakings. The undertakings will remain subject to review as appropriate.
The revised formulation of the undertakings given by Rank Xerox is as follows:
'Following the recent review of the undertakings given by this Company resulting from the report of the Monopolies and Mergers Commission on Indirect Electrostatic Reprographic Equipment, we, Rank Xerox (UK) Limited now undertake as follows:—Toner
- 1.1 We will give to all customers, before entering into agreements with them, the option of purchasing toner separately, either from ourselves or from another supplier.
- 1.2 We will show on our Rental and Service Agreements our current retail prices for toner and specify in such Agreements the terms on which customers may change to separate purchase of toner.
134 - 1.3 We will show the amount of the charge for toner on the rental invoices of all customers who do not elect to purchase toner separately.
- 1.4 We will inform the Director General of Fair Trading of any proposed changes to those terms of our Rental and Service Agreements that relate to the purchase of toner.
Copy Bureaux
- 2.1 We will exhibit in a prominent place at each of our copy bureaux and at each of our showrooms which customarily provides copy bureaux services, price lists for normal reprographic work.
- 2.2 We reaffirm our statement to the Monopolies and Mergers Commission that our copy bureaux will continue to be required to stand on their own feet commercially.
General
- 3 We will provide the Director General with such information as he may from time to time request for the purpose of monitoring the performance and effects of these undertakings.'
The above undertakings replace those dated 3 November 1978'.