Competition and market operation

Powers under the Competition Act 1998

The Competition Act 1998 came into force on 1 March 2000. In general terms, it outlaws any agreements, business practices or conduct which have a damaging effect on competition in the United Kingdom, including the abuse by an undertaking of its dominant position.

The Competition Act 1998 is applied and enforced by the Office of Fair Trading (OFT). In respect of agreements or conduct relating to the supply of services relating to the railways, the ORR exercises powers concurrently with the OFT.

The Board's jurisdiction under the Competition Act 1998 is, in some respects, more extensive than its regulatory jurisdiction under the Railways Act 1993. In particular, the Board is able to exercise its powers under the Competition Act to the provision and maintenance of rolling stock and the provision of passenger information systems.

Hence, the Board exercises functions under the Competition Act in respect of the activities of undertakings operating in the sectors of the industry which are not regulated by it though it Railways Act powers, as well as the activities of undertakings who benefit from an exemption from the licensing or access regimes (such as operators of freight depots).

ORR and the Office of Fair Trading are able to exercise functions under the Competition Act irrespective of whether the undertaking which is the subject of an investigation is in breach of a railway licence condition, and irrespective of whether the Regulator is entitled to exercise other functions under the Railways Act (although both will not exercise their powers in any given case).

Where an undertaking may be in breach of a licence condition as well as infringing one or other of the Competition Act's prohibitions, the Board will exercise either its functions under the Competition Act or those under the Railways Act, depending on which it regards as the more appropriate way of proceeding in the circumstances.