§ Lord Graham of Edmontonasked Her Majesty's Government:
Whether they are satisfied with the manner in which certain holiday tour companies seek to impose their rules on travel agents under the threat of withdrawal of services; and whether this is in the consumer's interest and whether they will indicate the extent to which the Competition Act 1980 is being breached by some holiday tour operators who are seeking to deny to the consumer the benefits of competition by threatening to withhold services, contrary to the Act.
§ Lord Lucas of ChilworthThe Competition Act 1980 does not of itself make practices unlawful but gives the Director General powers to conduct an investigation, following which he may consider whether to make a reference to the Monopolies and Mergers Commission.
The supply of tour operator services through travel agents is currently being investigated by the Monopolies and Mergers Commission following a reference by the Director General of Fair Trading 862WA under the monopoly provisions of the Fair Trading Act 1973. Moreover, the Director General stands ready to consider investigating any possible anticompetitive practices by tour operators which are not covered by that reference.