Council of Mortgage Lenders

Council of Mortgage Lenders Peter Davis Market Investigations and the Role of the Competition Commission 7 March 2007 INTRODUCTION CC Market Investigations  Their purpose and context  How they are done  Experience to date PURPOSE AND CONTEXT  2002 Enterprise Act 2002  Reference to CC: discretion not duty  Flexible legal framework: adverse effect on competition (AEC) test  Duty to remedy AEC; wide-ranging powers HOW THEY ARE DONE (i) Substance of investigation  Adverse effect on competition test • Arises if ‘feature(s) of the market’ prevent, restrict or distort competition  Broad scope of AEC  CC Guidelines (CC3, 2003) http://www.competition-commission.org.uk/rep_pub/ rules_and_guide/pdf/15073compcommguidance3final.pdf HOW THEY ARE DONE (ii) Remedies  Duty to remedy AEC  Wide range of powers  Include structural and behavioural remedies  Recommendations to de-regulate  Undertakings vs orders HOW THEY ARE DONE – (iii) Process Initial stages Information gathering and analysis Hearings main and third parties Provisional Findings Remedies Notice Administrative Timetable Issues Statement Emerging Thinking and Working Papers Report drafting Provisional Decision on Remedies Final Report Two-year time limit MARKET INVESTIGATION CASES        Store Card Credit Services Bulk Domestic LPG Home Credit Classified Directory Advertising Services Northern Irish Personal Banking Groceries Payment Protection Insurance MARKET INVESTIGATIONS – EXPERIENCE TO DATE     Thorough and robust analysis Open and transparent process Transparency and timing Role of parties and their advisers