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FIRE SERVICE AND GENERAL FIRE SAFETY TOPICS => Fire Safety => Topic started by: Ken Taylor on January 09, 2007, 12:27:38 AM
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Further to an earlier discussion here on the rights and wrongs of FRAs trading, I see that we now have a guidance document: 'Draft guidance on the power for Fire and Rescue Authorities to trade in function related activities'.
Paragraphs on competition read:
'Competition Law
77. The Competition Act 1998 introduced two prohibitions which reflect Articles 81 and 82
of the EC Treaty respectively. The Chapter I prohibition covers agreements between
undertakings that have the object or effect of distorting competition in the United
Kingdom, or a part of the United Kingdom. The Chapter II prohibition makes unlawful
conduct by one or more undertakings which amounts to an abuse of a dominant
position in a market in the United Kingdom.
78. Authorities should consider any proposed charging and trading activities very carefully
against the requirements of competition law, consulting their own lawyers as necessary.
Trading by local authorities may be subject to the provisions in the Competition Act
1998 and/or Articles 81 and 82 of the EC Treaty.
79. Whether or not a local authority may be considered an undertaking with respect to a
particular activity (and therefore subject to competition rules), depends on whether the
activity is ‘an economic activity’, a term which has a complex legal meaning. Neither the
legal status of the trading body (i.e. being a company or not) nor the way in which it is
funded are determinative on this. Therefore, the new provisions do not make a
significant difference in local authorities’ obligation to abide by competition rules.
Guidelines on the two prohibitions and additional guidance on when a public body may
be an undertaking can be found at www.oft.gov.uk
80. Authorities who, having read the guidance, are still unsure about whether they may be
considered undertakings with respect to an activity and whether that activity may
infringe competition rules, are urged to seek legal advice'.
As far as 'guidance' is concerned this still seems a little vague to me but no doubt the legal people will get to grips with this.
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Thanks Ken
That clears that up then!
Nobody but the govt or europe could come up with such clear, concise and helpful advice.
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They've just nicked what I said back in October.
What I said.
"It looks to me like they are trading form a dominant position, which is illegal.
The Chapter II prohibition of the Competition Act 1998 provides that:
'…any conduct on the part of one or more undertakings which amounts to the abuse of a dominant position in a market is prohibited if it may affect trade within the United Kingdom.'
Have a look at the Office of Fair Trading web site:
http://www.oft.gov.uk/Business/Legal/Co … /ca982.htm
Info on Chapter II can be found here:
http://www.oft.gov.uk/Business/Legal/Co … itions.htm
If it was affecting my trading I would certainly be making a complaint, which you can do here:
http://www.oft.gov.uk/Business/Legal/Co … plaint.htm"