HC Deb 31 October 2000 vol 355 cc363-4W
Dr. Cable

To ask the Secretary of State for Trade and Industry what constraints exist, where a breach of merger undertakings is identified, on the ability of the competition authorities to require an immediate rectification of such a breach; and if he will make a statement. [135665]

Dr. Howells

[holding answer 30 October 2000]: Where the parties to a merger are found to be in breach of statutory undertakings and the Director General of Fair Trading advises my right hon. Friend the Secretary of State for Trade and Industry that the circumstances of the breach are such that the relevant provisions should be enforced, my right hon. Friend the Secretary of State for Trade and Industry may make an order under sections 73 or 75k of the Fair Trading Act 1973 exercising the powers referred to therein, where he considers this will remedy the adverse effects of the merger. An application to the court may also be considered under section 93A of the Act.

Dr. Cable

To ask the Secretary of State for Trade and Industry what action can be taken by the competition authorities for which he is responsible where a company is found to be in breach of undertakings given to obtain approval of a merger under the Fair Trading Act 1973; and if he will make a statement. [135668]

Dr. Howells

[holding answer 30 October 2000]: If the Director General of Fair Trading (DGFT) considers that a breach of undertakings has occurred, he will consider whether to advise my right hon. Friend the Secretary of State for Trade and Industry to release the parties from the undertakings, or to vary or replace them (for example, because a change in market conditions has made it difficult or unreasonable for the parties to continue to seek to comply with the undertakings). The DGFT will also consider whether the circumstances of the breach are such that my right hon. Friend the Secretary of State for Trade and Industry should be advised to make an order under section 73 or 75k of the Fair Trading Act 1973 exercising the powers referred to therein, where he considers this is required to remedy the adverse effects of the merger. Consideration may also be given to civil proceedings in an appropriate case.