fair competition act, 2009 arrangement of sections

24
“applicant” means the party making an application to which this Schedule applies; “application” means an application under section 14; “rules” means rules made by the Minister under section 54(1); and “specified” means specified in the rules. (1) An application shall be made in accordance with rules. (2) An applicant shall take all reasonable steps to notify all other parties to the agreement of which the applicant is aware, that the application for guidance has been made. Notification under sub-paragraph (2) shall be made in the specified manner. When determining an application for guidance, the Commission shall follow such procedure as may be specified. The Commission shall arrange for an application to be published in such a way as it considers most suitable for bringing it to the attention of those likely to be affected by it, unless it is satisfied that it will be sufficient for it to notify one or more particular persons other than the applicant. General rules about applications Procedure on application for guidance Publication 2. 3. 4. 5. FAIR COMPETITION ACT, 2009 ARRANGEMENT OF SECTIONS Sections PART I - PRELIMINARY PART II - FAIR TRADING COMMISSION PART III - RESTRICTIVE BUSINESS PRACTICE 7. 1. Short title and commencement 2. Interpretation 3. Application of Act 4. Administration of Act 5. Functions 6. Powers Abuse of dominant position 8. Request for Commission to consider conduct 9. Notification for guidance 10. Effect of guidance 11. Provisions restricting, preventing or distorting competition 12. Agreements containing exclusionary provision 13. Request for Commission to examine agreement 14. Notification for guidance 15. Effect of guidance 16. Collective agreements by dealers or suppliers 17. Agreement re minimum resale price void 18. Patented goods Sub-Part I - Abuse of Dominant Position Sub-Part II - Agreements etc Preventing, Restricting or Distorting Competition Sub-Part III - Resale Price Maintenance I certify that this is a correct copy of the Bill which was passed by the NationalAssembly on the 25th September, 2009. Veronique Bresson Clerk of the National Assembly [3rd November 2009] 219 Supplement to Official Gazette 266 Supplement to Official Gazette [3rd November 2009]

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“applicant” means the party making an application towhich this Schedule applies;

“application” means an application under section 14;

“rules” means rules made by the Minister under section54(1); and

“specified” means specified in the rules.

(1) An application shall be made in accordance with rules.

(2) An applicant shall take all reasonable steps to notify allother parties to the agreement of which the applicant isaware, that the application for guidance has been made.

Notification under sub-paragraph (2) shall be made inthe specified manner.

When determining an application for guidance, theCommission shall follow such procedure as may bespecified.

The Commission shall arrange for an application to bepublished in such a way as it considers most suitable forbringing it to the attention of those likely to be affectedby it, unless it is satisfied that it will be sufficient for it tonotify one or more particular persons other than theapplicant.

General rules about applications

Procedure on application for guidance

Publication

2.

3.

4.

5.

FAIR COMPETITION ACT, 2009

ARRANGEMENT OF SECTIONS

SectionsPART I - PRELIMINARY

PART II - FAIR TRADING COMMISSION

PART III - RESTRICTIVE BUSINESS PRACTICE

7.

1. Short title and commencement2. Interpretation3. Application of Act

4. Administration of Act5. Functions6. Powers

Abuse of dominant position8. Request for Commission to consider conduct9. Notification for guidance10. Effect of guidance

11. Provisions restricting, preventing or distorting competition12. Agreements containing exclusionary provision13. Request for Commission to examine agreement14. Notification for guidance15. Effect of guidance

16. Collective agreements by dealers or suppliers17. Agreement re minimum resale price void18. Patented goods

Sub-Part I - Abuse of Dominant Position

Sub-Part II - Agreements etc Preventing, Restricting orDistorting Competition

Sub-Part III - Resale Price Maintenance

I certify that this is a correct copy of the Bill which waspassed by the NationalAssembly on the 25th September, 2009.

Veronique BressonClerk of the National Assembly

[3rd November 2009] 219Supplement to Official Gazette266 Supplement to Official Gazette [3rd November 2009]

“application” means an application under section9;

“other party”, in relation to conduct of two or morepersons, means one of those persons other than theapplicant;

“rules” means rules made by the Minister under section54(1); and

“specified” means specified in the rules.

(1) An application shall be made in accordance with rules.

(2) If the conduct to which an application relates is conductof two or more persons, the applicant shall take allreasonable steps to notify all of the other parties ofwhich the applicant is aware, that the application forguidance has been made.

(3) Notification under sub-paragraph (2) shall be made inthe specified manner.

. When determining an application for guidance, theCommission shall follow such procedure as may bespecified.

In this Schedule —

General rules about applications

Procedure on application for guidance

2.

3

SCHEDULE 3

NOTIFICATION FOR GUIDANCE: PROCEDURE

1.

Publication

4. The Commission shall arrange for an application to bepublished in such a way as it considers most suitable forbringing it to the attention of those likely to be affectedby it, unless it is satisfied that it will be sufficient for it tonotify one or more particular persons other than theapplicant.

(Section 13(2))

19. Maintenance of minimum resale prices20. Withholding supplies

21. Merger22. Application to Commission for merger23. Permitted merger24. Factors to be considered before grant of permission

25. Price fixing26. Action to restrain competition27. Bid-rigging

28. Grant of authorisation29. Effect of authorisation30. Revocation or amendment of authorisation31. Register of Authorisation

32. Initiation of complaint by Commission33. Initiation of complaint by any person34. Investigation by Commission35. Discontinuation of investigation36. Report37. Convening of hearings

38. Assessment under Sub-Parts I, II and IV of Part III39. Assessment under Sub-Parts III and V of Part III40. Consideration upon finding of adverse effects on competition

PART IV - INVESTIGATION BY AND HEARINGBEFORE COMMISSION

PART V - ASSESSEMENT OF RESTRICTIVE BUSINESS PRACTICE

Sub-Part IV - Control of Merger Situation by Commission

Sub-Part V - Anti-Competitive Business Conduct

Sub-Part VI - Authorisation

[3rd November 2009] 265Supplement to Official Gazette220 Supplement to Official Gazette [3rd November 2009]

200,000 rupees or to imprisonment for a term not exceeding 2years or to both.

(1) The Commission shall not take action under thisAct if, within 2 months after the commencement of this Act,enterprises notify the Commission of details of any restrictivebusiness practice, and agree with the Commission as to themanner and the period within which that restricted businesspractice will be amended, terminated or ceased, and haveotherwise settled the matter.

(2) Sections 8, 9, 10, 13, 14 and 15 shall apply only toagreements entered into or arrived at by enterprises on or after7th June 2010.

Any practice of employers or agreement by whichemployers are parties insofar as it relates to theremuneration, terms or conditions or employment ofemployees.

Any practice or agreement approved or required underan international agreement to which Seychelles is aparty.

In this Schedule —

“applicant” means the party making an application towhich this Schedule applies;

55.

SCHEDULE 1

AGREEMENTS OR PRACTICES EXCLUDEDFROM THE ACT

1.

2.

SCHEDULE 2

NOTIFICATION FOR GUIDANCE: PROCEDURE

1.

(Section 3(3))

(Section 8(2))

Transitionalperiod

PART VI - DETERMINATION OF CASES BY COMMISSION,PENALTIES AND REMEDIES

PART VII - APPEAL

PART VIII - MISCELLANEOUS

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

41. Directions in relation to conduct falling within scope of Sub-Part I of Part III42. Directions in relation to agreement falling within scope of Sub-Part II of

Part III43. Consideration of offsetting benefits in determination of remedial measures44. Directions under Sub-Part IV of Part III45. Directions in relation to agreement or practice falling within scope of Sub-

Parts III and V of Part III46. Financial penalty47. Interim measures48. Undertakings49. Keeping directions and undertakings under review

50. Appeal to Tribunal51. Prosecution of appeal52. Appeal to Supreme Court

53. Enforcement of directions, undertakings or order54. Regulations55. Transitional period

[3rd November 2009] 221Supplement to Official Gazette264 Supplement to Official Gazette [3rd November 2009]

PART VII - APPEAL

50.

51.

52.

PART VIII - MISCELLANEOUS

53.

54.

Aparty dissatisfied with an order or direction of theCommission may appeal to the Tribunal against, or withrespect to, the order or direction.

An appeal shall be prosecuted in the form andmanner provided by the Tribunal.

(1) A person dissatisfied with an order or direction ofthe Tribunal may appeal to the Supreme Court against, or withrespect to, the order or direction.

(2) Part VIII of the Fair Trading Commission Act,2009, applies to an appeal to the Supreme Court.

A person who fails or refuses to comply with a finaldirection, order or undertaking of the Commission or order ordirection of the Tribunal commits an offence and is liable onconviction —

(a) where the person is an individual, to a finenot exceeding 100,000 rupees or toimprisonment for a term not exceeding 2years, or to both; or

(b) where the person is a person other than anindividual to a fine not exceeding 400,000rupees.

(1) The Minister may make regulations for givingeffect to the provisions of thisAct.

(2) The Minister may, by regulation, amend theSchedule.

(3) Regulations made under subsection (1) mayprovide that any person who contravenes them commits anoffence and is liable on conviction to a fine not exceeding

Enforcement ofdirections,undertakings ororder

Appeal toTribunal

Prosecutionof appeal

Appeal toSupreme Court

Regulations

Act 17 of 2009

[3rd November 2009] 263Supplement to Official Gazette

(2) A direction given under this section shall be inwriting.

(3) The Commission shall give an enterprise to whichit intends to give a direction the opportunity to makerepresentations before the direction is given.

(1) An enterprise may offer a written undertaking to theCommission to address any concern that has arisen, or is likelyto arise, during an investigation in respect of a restrictivebusiness practice subject to investigation.

(2) An undertaking may be offered before the start ofan investigation or at any stage during an investigation.

(3) The Commission may, after having takencognizance of the report of the Chief Executive Officer on thematter, determine a case on the basis of an undertaking if itconsiders that the undertaking satisfactorily addresses all theconcerns it has about any prevention, restriction, distortion orsubstantial lessening of competition.

(4) An undertaking accepted by the Commission shallbe published by the Commission in the form of a decision ofthe Commission.

(5) An undertaking accepted by the Commission shallhave effect as if it were a direction under section 41(1).

(1) The Commission shall keep under review thecompliance with directions given by it and the performance ofundertakings given by an enterprise.

(2) The Commission may, where it is satisfied thatthere has been a material change of circumstances —

(a) agree to vary or terminate a direction; or

(b) accept a variation to an undertaking orrelease an enterprise from an undertaking.

48.

49.Keepingdirections andundertakingsunder review

Undertakings

AN ACT to promote, maintain and encouragecompetition, to prohibit the prevention, restriction ordistortion of competition, and abuse of dominant positionsin trade, to ensure that enterprises, irrespective of size,have the opportunity to participate equitably in the marketplace and provide for matters connected therewith.

ENACTED by the President and NationalAssembly.

PART I - PRELIMINARY

1.(1) This Act may be cited as the Fair Competition Act,2009, and shall come into operation on 5thApril 2010.

Short title andcommencement

FAIR COMPETITION ACT, 2009

(Act No. 18 of 2009)

I assent

J. A. MichelPresident

26th October, 2009

[3rd November 2009] 223Supplement to Official Gazette262 Supplement to Official Gazette [3rd November 2009]

restrictive business practice and has notcompleted its investigation of the matter, butbelieves that there is a risk of seriousirreparable damage to a particular person as aconsequence of the restrictive businessprcatice; or

(b) an enterprise is a party to an agreement whichis subject to an investigation, or to a mergersituation, on which the Commission hasopened but not completed an investigation,and where the Commission is satisfied that—

there is prima facie evidence thatcompetition is being prevented,restricted, distorted or substantiallylessened and that, in consequence,serious or irreparable damage may becaused to a particular person; or

the enterprise is taking steps that wouldeffectively pre-empt remedial actionbeing taken that would restore theconditions of competition existing priorto investigation,

the Board may, after having taken cognizance of thereport of the Chief Executive Officer on the matter,give such directions as it considers appropriate if, asa matter of urgency, it considers it is necessary to doso to —

(aa) prevent serious or irreparabledamage to a particular person orcategory of persons;

(bb) protect the public interest; or

(cc) prevent pre-emptive action beingtaken by the enterprise underinvestigation.

(i)

(ii)

2. In thisAct —

“acquire”, in relation to —

(a) goods, includes to obtain by way of gift,purchase or exchange, lease, hire or hirepurchase; and

(b) services, includes to accept the rendering orperformance of services;

“advertisement” means any form of communi-cation made to the public or a section of the publicfor the purpose of promoting the supply of goods orservices;

“agreement” includes any agreement, arrangementor understanding, whether oral or in writing orwhether or not it is or is intended to be legallyenforceable;

“Board” has the meaning given to it under section 2of the Fair Trading CommissionAct, 2009;

“business” —

(a) means the carrying on of any commercialactivity for gain or reward; and

(b) includes —

manufacturing, producing, transport-ing, acquiring, supplying, storing andotherwise dealing in goods for gain orreward; or

acquiring, supplying and otherwisedealing in services for gain or reward;

(i)

(ii)

Interpretation

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Act 17 of 2009

(3) A direction given under this section shall be inwriting.

(1) The Commission may, in relation to adetermination made under this Part, in addition to, or insteadof, giving a direction, make an order imposing a financialpenalty on an enterprise.

(2) Where the Commission imposes a financial penaltyon an enterprise, the financial penalty shall not exceed 10 percent of the turnover of the enterprise in Seychelles during theperiod of the breach of the prohibition up to a maximum periodof 5 years.

(3) An order imposing a penalty under subsection (1)shall be in writing and shall specify the date before which thepenalty is required to be paid.

(4) The date specified under subsection (3) shall not beearlier than the end of the period within which an appealagainst the order may be brought under section 50.

(5) Where a penalty has not been paid within thespecified date and —

(a) no appeal against the order was broughtunder section 50; or

(b) an appeal was made but dismissed orwithdrawn,

the Commission may apply to the Supreme Court for an orderto enforce payment of the penalty against an enterprise.

(1) Where —

(a) the Commission has reasonable grounds tosuspect that an enterprise is a party to a

46.

47.

Financialpenalty

“Commission” means the Fair Trading Commis-sion established under section 3(1) of the FairTrading CommissionAct, 2009;

“concerted practice” means co-operative or co-ordinated conduct between enterprises achievedthrough direct or indirect contact, that replaces theirindependent action, but which does not amount toan agreement;

“consumer” means any direct or indirect user of aproduct or service supplied by an enterprise in thecourse of business, and includes —

(a) another enterprise that uses the product orservice thus supplied as an input to its ownbusiness;

(b) a wholesaler, a retailer and a final consumer;

“document” includes —

(a) anything on which there is writing;

(b) a map, plan, drawing or photograph;

(c) anything from which sounds or visual imagesare capable of being reproduced;

(d) any record created, stored, generated,received or communicated by electronic orelectromagnetic means;

“enterprise” means any person, firm, partnership,corporation, company, association, or otherjuridical person engaged in commercial activitiesfor gain or reward, and includes its branches,subsidiaries, affiliates or other entities directly orindirectly controlled by it;

Interimmeasures

Act 17 of 2009

[3rd November 2009] 225Supplement to Official Gazette260 Supplement to Official Gazette [3rd November 2009]

such conduct, including conduct in relationto prices, as is specified in the direction as acondition of proceeding with the merger.

(2) Where the Commission determines afterinvestigation that enterprises have, without obtaining thepermission of the Commission under section 22(1), structuredthemselves in such a way as to constitute a merger within themeaning of this Act, it may by notice in writing direct theenterprises concerned to determine the merger within suchtime as is specified in the direction.

(3) The Commission shall notify the applicant inwriting of its determination.

(1) Where the Commission determines that anagreement under Sub-Part III or Sub-Part V of Part III isunlawful or anti-competitive respectively, it shall prepare areport of its findings, and

(a) shall notify the enterprise or enterprises of itsfinding accompanied by a copy of the report;

(b) shall declare the agreement null anddirect the enterprise to rescind it;and

(c) may require the enterprise to take suchfurther action as in its opinion is necessary.

(2) Where the Commission determines that a conductunder Sub-Part V of Part III is anti-competitive, it shall preparea report of its findings, and —

(a) shall direct the enterprise to cease the anti-competitive business conduct; and

(b) subsection (1)(a) and (c) applies to adetermination of the Commission under thissubsection.

45.

Directions inrelation toagreement orpractice fallingwithin scope ofSub-Parts III andV of Part III

“exclusive dealing” means any practice whereby asupplier of goods —

(a) as a condition of supplying the goods to aconsumer, requires that consumer to —

deal only or primarily in goods suppliedby or designated by the supplier or thesupplier’s nominee; or

refrain from dealing in a specified classor kind of goods except as supplied bythe supplier or the supplier’s nominee;or

(b) induces a consumer to meet a conditionreferred to in paragraph (a) by offering tosupply the goods to the consumer on morefavourable terms or conditions if theconsumer agrees to meet that condition;

“goods” includes all chattels other than money,securities or choses in action;

“market restriction” means any practice whereby asupplier of goods, as a condition of supplying thegoods to a consumer, requires that consumer tosupply any goods only in a defined market, orexacts a penalty of any kind from the consumer ifthe consumer supplies any goods outside a definedmarket;

“merger” means the acquisition or establishment,direct or indirect, by one or more enterprises,whether by purchase of shares or assets, lease ofassets, amalgamation or combination or otherwise,of control over the whole or a part of the business ofan immediate competitor, supplier, consumer orother enterprise;

(i)

(ii)

[3rd November 2009] 259Supplement to Official Gazette226 Supplement to Official Gazette [3rd November 2009]

(b) cease or amend a practice or course ofconduct in relation to prices;

(c) supply goods or services or grant access tofacilities;

(d) separate or divest itself of any enterprise orassets; or

(e) provide the Commission with specifiedinformation on a continuing basis,

within such time as may be specified by the Commission.

(3) A direction given under this section shall be inwriting.

In determining, in any particular case, the remedialmeasures required to be taken under sections 41 and 42, theCommission shall have regard to the extent to which any of theoffsetting benefits specified in section 40(2) are present in thatcase.

(1) Where a merger proposed is likely to result in unfaircompetition, the Commission may —

(a) direct the enterprises within an agreed periodto divest interests or part of their combinedbusinesses or operations, if it is satisfied thatsuch divestment would make the merger lesslikely to lessen competition or to adverselyaffect the interests of consumers or theeconomy;

(b) direct the enterprises to desist fromcompletion or implementation of the mergerin so far as it relates to the market inSeychelles; or

(c) direct the enterprises to adopt or desist from

43.

44.

Consideration ofoffsettingbenefits indetermination ofremedialmeasures

Directions underSub-Part IV ofPart III

“Minister” means the Minister responsible forTrade;

“prescribed” means prescribed by regulations;

“price” includes any charge or fee, by whatevername called, payable in connection with theprovision of a good or service;

“restrictive business practice” means any situationfalling within Part III;

“service” means a service of any description,whether industrial, trade, professional or otherwise;

“share” —

(a) means a share in the share capital of acompany or other body corporate, whether ornot it carries the right to vote at generalmeetings; and

(b) includes —

a beneficial interest in any such share:

a power to exercise, or control theexercise of, a right to vote attaching toany such share that carries the right tovote at meetings of the company;

a power to acquire or dispose of, orcontrol the acquisition or disposition of,any such share; or

a perpetual debenture and perpetualdebenture stock;

“supply” includes —

(a) in relation to goods —

(i)

(ii)

(iii)

(iv)

[3rd November 2009] 227Supplement to Official Gazette258 Supplement to Official Gazette [3rd November 2009]

42.(1) Where the Commission determines that anenterprise is a party to a restrictive agreement falling within thescope of Sub-Part II of Part III, that —

(a) in relation to a restrictive agreement, theagreement has the object or effect ofpreventing, restricting or distortingcompetition; or

(b) in relation to a monopoly situation, anyconduct of the enterprise —

has the effect of preventing, restrictingor distorting competition, or

in any other way, const i tutesexploitation of the monopoly situation,

the Commission shall give the enterprise such directions as itconsiders necessary, reasonable and practicable to —

(aa) remedy, mitigate or prevent theunfair or adverse effects oncompetition that it has identified;or

(bb) remedy, mitigate or prevent anydetrimental effects on users andconsumers so far as they haveresulted from, or are likely toresult from, the adverse or unfaireffects on, or the absence of,competition.

(2) A direction given under this section may include arequirement that the enterprise to which it is given —

(a) terminate or amend an agreement;

(i)

(ii)

Directions inrelation toagreement fallingwithin scope ofSub-Part II ofPart III

(i)

(ii)

(i)

(ii)

to sell, rent, exchange, hire or otherwisedispose of goods or an interest thereinor a right thereto; or

to offer to sell, rent, exchange, hire orotherwise dispose of such goods, rightor interest; or

(b) in relation to services, to provide services oroffer to provide such services otherwise thanunder a contract of employment, and“supplier” shall be construed accordingly;

“tied selling” means any practice whereby asupplier of goods or services —

(a) as a condition of supplying the goods orservices referred to in this definition as the“tied goods” or “tied services” respectively,to a consumer, requires the consumer to —

acquire any other goods or servicesfrom the supplier or the supplier’snominee; or

refrain from using or distributing, inconjunction with the tied goods, anyother goods that are not of a brand ormanufacture designated by the supplieror the supplier’s nominee; or

(b) induces a consumer to meet a condition setout in a provision of paragraph (a) byoffering to supply the tied goods or tiedservices to the consumer on more favourableterms or conditions if the consumer agrees tomeet that condition;

“trade” means any trade, business, industry,

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(2) A benefit shall be considered for the purposes ofsubsection (1) if it is shown that the effects of any absence,prevention, restriction or distortion of competition areoutweighed by specific gains of —

(a) the safety of goods and services;

(b) the efficiency with which goods areproduced, supplied or distributed or servicesare supplied or made available;

(c) the development and use of new andimproved goods and services and in means ofproduction and distribution; or

(d) the promotion of technological andeconomic progress,

and the benefits have been or are likely to be shared byconsumers and businesses in general.

(1) Where the Commission determines that anyconduct falls within the scope of Sub-Part I of Part III, it shallprepare a report indicating the conduct that constituted theabuse and —

(a) shall notify the enterprise of its findingaccompanied by a copy of the report;

(b) shall direct the enterprise to cease the abusiveconduct within a specified period; and

(c) may require the enterprise to take suchfurther action as in its opinion is necessary.

(2) A direction given under subsection (1) shall be inwriting.

PART VI - DETERMINATION OF CASES BYCOMMISSION, PENALTIES AND REMEDIES

41.Directions inrelation toconduct fallingwithin scope ofSub-Part I ofPart III

profession or occupation relating to the supply oracquisition of goods or services;

“Tribunal” means the Tribunal established undersection 44(1) of the Fair Trading Commission Act,2009.

(2) Every reference in thisAct to —

(a) anti-competitive practice” or “anti-competitive business conduct” is a referenceto a practice or conduct amounting to orresulting in a non minor restraint of trade orany act of competition in industrial orcommercial matters, including theconclusion of an agreement or theestablishment of an arrangement that —

restricts trade;

maintains or is likely to result in themaintenance of a dominant position; or

constitutes a pricing regime respecting aparticular product or trade that iscontrolled by a supplier or purchaser;

(b) market” is a reference to a market for goodsor services supplied in Seychelles.

(c) “lessening of competition” shall, unless thecontext otherwise requires, includereferences to hindering or preventingcompetition.

(3) For the purposes of this Act, the effect oncompetition in a market shall be determined by reference to allfactors that affect competition in that market, includingcompetition from goods or services supplied or likely to besupplied by persons not resident or carrying on business inSeychelles.

(i)

(ii)

(iii)

Act 17 of 2009

[3rd November 2009] 229Supplement to Official Gazette256 Supplement to Official Gazette [3rd November 2009]

whether competition in any market is adversely affected in that,in the case of —

(a) a restrictive agreement, the agreement hasthe object or effect of preventing, restrictingor distorting competition;

(b) a monopoly situation, the conduct of one ormore parties —

has the object or effect of preventing,restricting or distorting competition; or

in any other way cons t i tu t esexploitation of the monopoly situation;

(c) a merger situation, a proposed merger willresult or is likely to result, in a substantiallessening of competition within any market,having regard to the factors set out in section24.

(1) Where the review of any matter described in section38 leads to a finding by the Commission that there are adverseor unfair effects on competition in a particular case, it shall,before deciding on any appropriate remedial action to be takenas provided for under Part VI, consider —

(a) if any of the offsetting public benefitsspecified in subsection (2) are present; and

(b) whether and to what extent the benefits, ifthey are present, should be taken into accountin determining the remedial action to betaken.

(i)

(ii)

39. The Commission shall, in relation to everyagreement falling under Sub-Parts III and V of Part IIIestablish whether on the facts of the case, the parties to theagreement have infringed the prohibition imposed under thoseSub-Parts.

40. Considerationupon finding ofadverse effectson competition

Assessmentunder Sub-PartsIII and V ofPart III

3.

PART II - FAIR TRADING COMMISSION

4.

5.

(1) Save as otherwise provided for in this section orelsewhere in this Act, this Act shall apply to every economicactivity within, or having an effect within, Seychelles.

(2) This Act shall bind the State to the extent that theState engages in trade or business for the production or supplyof goods or services within a market in Seychelles which isopen to participation by other enterprises.

(3) This Act does not apply to matters listed inSchedule 1.

The Commission shall be responsible for theadministration of thisAct.

(1) The Commission shall —

(a) be responsible for the promotion andmaintenance of fair competition;

(b) carry out on its own initiative or at therequest of any person or enterprise that hasan interest in a matter, such investigations inrelation to the conduct of trade —

as will enable it to prevent the use ofbusiness practices in contravention ofthisAct; or

as it may consider necessary ordesirable in connection with anymatters falling within the provisions ofthisAct;

(c) keep under review commercial activities toensure that practices that may adversely or

(i)

(ii)

Administrationof Act

Functions

Application ofAct

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Act, 2009, apply, with such modifications and adaptations asare necessary, to a search or seizure executed under thisAct.

(1) Where the Commission at any stage of aninvestigation under this Act is of opinion that the matter beinginvestigated does not justify further investigation, theCommission may discontinue the investigation, and shallmake a report in writing stating the reasons for suchdiscontinuation.

(2) Where the Commission discontinues aninvestigation under subsection (1), it shall —

(a) within 14 days of the discontinuation notifythe parties concerned in the investigation ofthe discontinuation; and

(b) submit a report of the discontinuation to theMinister within 3 months of such disconti-nuation.

At any time after the conclusion of an investigation,the Chief Executive Officer shall submit his or her report of theinvestigation to the Board.

(1) Upon receipt of a report submitted under section36, the Board shall convene a hearing.

(2) Part VI of the Fair Trading Commission Act, 2009,applies with such modifications and adaptations as arenecessary, to a hearing convened under thisAct.

(1) When reviewing a matter falling within Sub-Parts I,II and IV of Part III, the Commission shall have regard to thedesirability of maintaining and encouraging competition andthe benefits to be gained in respect of price, quantity, varietyand quality of goods and services, and shall first determine

35.

36.

37.

PART V - ASSESSMENT OF RESTRICTIVEBUSINESS PRACTICE

38.

Report

Discontinuationof investigation

Convening ofhearings

Act 17 of 2009

unfairly affect the interests of consumers andbusinesses are prevented or terminated;

(d) take such action as it considers necessary —

to prevent the abuse of a dominantposition by an enterprise;

to eliminate anti-competitive practices;and

to prevent or control anti-competitivemergers;

(e) make available to consumers generalinformation with respect to their rights andobligations under thisAct; and

(f) perform such other functions to give effect tothisAct.

(1) The Commission shall have such powers as arenecessary to enable it to effectively perform its functions andmay, in particular —

(a) enter into such contracts as may be necessaryor expedient for the purpose of performing itsfunctions under thisAct;

(b) conduct as required, any hearings withinterested persons or parties;

(c) issue orders and directions in accordancewith thisAct;

(d) impose remedies or financial penalties on anenterprise which conducts its business inbreach of thisAct;

(i)

(ii)

(iii)

6. Powers

Assessmentunder Sub-PartsI, II and IV ofPart III

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33.

34.

(1) Any person may —

(a) submit information concerning an allegedrestrictive business practice, in any manneror form; or

(b) submit a complaint against an allegedrestrictive business practice,

to the Commission.

(2) Sections 31 and 32 of the Fair Trading CommissionAct apply, with such modifications and adaptations as arenecessary, to a complaint submitted under this section.

(1) The Commission shall investigate —

(a) a complaint initiated under section 32 orsubmitted under section 33; or

(b) a proposed merger under section 22(1), inorder to satisfy itself that the proposedmerger would not adversely affectcompetition or be detrimental to consumers.

(2) The Commission for the purposes of investigating acomplaint, may —

(a) enter and search any premises;

(b) inspect and remove, for the purpose ofmaking copies, any documents or extractstherefrom in the possession or under thecontrol of any person; and

(c) upon completing the search authorised by awarrant, leave a receipt listing documents orextracts therefrom that are removed for thepurposes of this section.

(2) Sections 34 and 35 of the Fair Trading Commission

Investigation byCommission

Initiation ofcomplaint byany person

(e) impose such fees as may be required underthisAct or regulations made under it;

(f) co-operate with authorities in othercountries entrusted with functions similar tothose of the Commission.

(1) Subject to subsection (4), any conduct on the partof one or more enterprise or enterprises which amounts to anabuse of a dominant position in a market is prohibited, if it mayadversely or unfairly affect trade within Seychelles.

(2) For the purposes of this Act, an enterprise orenterprises together hold a dominant position or a jointdominance in a market if that enterprise or enterprises togetheroccupy such a position of economic strength as will enablethem to operate in the market independently without effectivecompetition from their clients, competitors or potentialcompetitors.

(3) Conduct may, in particular, constitute such anabuse if it consists in —

(a) restricting the entry of any enterprise intothat or any other market that supplies or islikely to supply a substitute for the goods orservices supplied in that market;

(b) preventing or deterring any enterprise fromengaging in competitive conduct in that orany other market;

(c) eliminating or removing any enterprise fromthat or any other market;

(d) directly or indirectly imposing unfairpurchase or selling prices or other unfair

PART III - RESTRICTIVE BUSINESS PRACTICE

7.

Sub-Part I - Abuse of Dominant Position

Abuse of dominantposition

Act 17 of2009

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information that was false ormisleading;

there has been a breach of any terms orconditions, subject to which theauthorisation was granted; or

the circumstances that justified thegrant of the authorisation no longerexist; or

(b) amend the authorisation where it is satisfiedthat the current conditions in the marketnecessitate an amendment.

(2) The Commission shall, before revoking oramending an authorisation

(a) serve on the relevant applicant a notice inwriting specifying the reason for theproposed revocation or amendment; and

(b) inform the applicant of its right to apply toit to be heard on the matter within suchtime as may be specified in the notice.

(1) The Commission shall keep or cause to be kept, insuch form as it may determine, a Register of Authorisationgranted under this Sub-Part.

(2) The Register of Authorisation shall be kept at theoffice of the Commission and shall be available for inspectionby members of the public during the hours of business of theCommission.

The Commission may initiate a complaint againstan alleged restrictive business practice.

(ii)

(iii)

31.

PART IV - INVESTIGATION BY AND HEARINGBEFORE COMMISSION

32.

Register ofAuthorisation

trading conditions that are excessive,unreasonable, discriminatory or predatory;

(e) limiting production, markets or technicaldevelopment to the prejudice of consumers;

(f) applying dissimilar conditions to equivalenttransactions with other trading parties,thereby placing them at a competitivedisadvantage;

(g) making the conclusion of agreements subjectto acceptance by the other parties ofsupplementary obligations which, by theirnature or according to commercial usage,have no connection with the subject of suchagreements;

(h) exclusive dealing, market restriction or tiedselling.

(4) An enterprise is not to be treated as abusing adominant position —

(a) if it is shown that its behaviour wasexclusively directed to improving theproduction or distribution of goods orpromoting technical or economic progress,and consumers were allowed a fair share ofthe resulting benefit;

(b) if the effect or likely effect of its behaviour ina market is the result of its superiorcompetitive performance; or

(c) by reason only that the enterprise enforces orseeks to enforce any right under or existingby virtue of any copyright, patent, registereddesign or trademark except where the

Initiation ofcomplaint byCommission

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(2) The Commission upon receipt of an applicationunder subsection (1) may grant an authorisation, where it issatisfied that the agreement or practice, as the case may be, islikely to promote the public benefit and is reasonable in thecircumstances.

(3) An authorisation may be subject to such terms andconditions as the Commission considers fit and for such time asit shall specify.

(4) The Commission shall before granting anauthorisation —

(a) publish a notice in the and in at leastone newspaper that is published dailyinforming the public of the application andadvising that any person who has an interestin the matter may submit written objectionsto the grant of the authorisation, within thetime specified in the notice; and

(b) consider all objections received and satisfyitself that it is reasonable in thecircumstances to grant the authorisation.

(5) Where the Commission refuses to grant anauthorisation, it shall inform the applicant in writing of therefusal and the reasons for such refusal.

While an authorisation granted under section 28(2)remains in force, nothing in this Act shall prevent the applicantfrom giving effect to any provision of an agreement, or fromengaging in any practice, to which the authorisation relates.

(1) Subject to subsection (2), the Commission shall —

(a) revoke an authorisation where it is satisfiedthat —

the authorisation was granted on

Gazette

(i)

29.

30.

Effect ofauthorisation

Revocation oramendment ofauthorisation

Commission is satisfied that the exercise ofthose rights —

has the effect of lessening competitionsubstantially in a market; and

impedes the transfer and disseminationof technology.

(1) Sections 9 and 10 provide for conduct of anenterprise which the Commission considers may infringe theprohibition in section 7(1), to be considered by it on theapplication of that enterprise.

(2) Schedule 2 provides for the procedure to befollowed —

(a) by an enterprise making an application; and

(b) by the Commission, in considering anapplication.

(1) An enterprise which applies for conduct to beconsidered under this section shall —

(a) notify the Commission of it; and

(b) apply to it for guidance.

(2) On an application under this section, theCommission may give the applicant guidance as to whether ornot, in its view, the conduct is likely to infringe the prohibitionin section 7(1).

(1) This section applies to conduct, if the Commissionhas determined an application under section 9(2) by givingguidance that the conduct is unlikely to infringe the prohibitionin section 7 (1).

(i)

(ii)

8.

9.

10.

Request forCommission toconsider conduct

Notification forguidance

Effect ofguidance

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the arrangements are related to the introduction ormaintenance of —

(a) standards for products or the quality ofservice that is reasonably necessary for theprotection of the public; and

(b) standards of competence and integrity thatare required —

in the practice of a trade or professionrelating to the service; or

in the collection and dissemination ofinformation relating to the service.

(1) Subject to subsection (2), it is unlawful for two ormore persons to enter into an agreement whereby—

(a) one or more of them agree to undertake not tosubmit a bid in response to a call or requestfor bids or tenders; or

(b) as bidders or tenderers they submit, inresponse to a call or request, bids or tendersthat are arrived at by agreement between oramong themselves.

(2) This section does not apply in respect of anagreement that is entered into or a submission that is arrived atonly by enterprises each of which is, in respect of every one ofthe others, an affiliate.

1) Notwithstanding this Act, an enterprise thatproposes to enter into or carry out an agreement or to engage ina business practice which, in its opinion, is an agreement orpractice affected or prohibited by this Act, may apply to theCommission in the prescribed form for an authorisation to doso.

(i)

(ii)

27.

28.(

Sub-Part VI- Authorisation

Bid-rigging

Grant ofauthorisation

(2) The Commission shall take no further action underthis Sub-Part with respect to the conduct to which this sectionapplies, unless —

(a) it has reasonable grounds for believing thatthere has been a material change ofcircumstance since it gave its guidance;

(b) it has a reasonable suspicion that theinformation on which it based its guidancewas incomplete, false or misleading in amaterial particular; or

(c) a complaint about the conduct has been madeto it.

(3) A penalty may not be imposed under this Sub-Partin respect of any infringement of the prohibition by conduct towhich this section applies.

(4) The Commission may, however, remove theimmunity given by subsection (3) if —

(a) it takes action under this Sub-Part withrespect to the conduct in one of thecircumstances mentioned in subsection (2);

(b) it considers that it is likely that the conductwill infringe the prohibition; and

(c) it gives notice in writing to the enterprise onthe application of which the guidance wasgiven that it is removing the immunity asfrom the date specified in the notice.

(5) Where the Commission has a reasonable suspicionthat information —

(a) on which it based its guidance; and

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the enterprise in respect of which the attempt to influence ismade, are affiliated companies or, as the case may be, principaland agent.

(3) For the purposes of this section, the publication bya supplier of goods other than a retailer of an advertisement thatmentions a resale price for the goods is an attempt to influencean increase or the maintenance of the selling price of anyperson in the hands of which the goods come for resale, unlessthe price is so expressed as to make it clear to any person whichbecomes aware of the advertisement that the goods may be soldat a lower price.

(1) An enterprise shall not conspire, combine, agree orarrange with another person to —

(a) limit the facilities for transporting,producing, manufacturing, storing or dealingin any goods or supplying any service;

(b) prevent, limit or unduly lessen, themanufacture or production of any goods toenhance unreasonably the price thereof;

(c) unduly lessen competition in the production,manufacture, purchase, sale, supply, rental ortransportation of any goods;

(d) unduly lessen, limit or prevent competitionin the provision of insurance on personsconcerned in or property related to theproduction, storage, transportation ordealing in any goods or the provision ofservices; or

(e) otherwise unduly restrain or injurecompetition.

(2) Nothing in subsection (1) applies to a case where

26. Action to restraincompetition

(b) which was provided to it by an enterpriseengaging in the conduct,

was incomplete, false or misleading in a material particular,the date specified in the notice under subsection (4)(c) maybe earlier than the date on which the notice is given.

(1) Subject to this section, agreements betweenenterprises, trade practices or decisions of enterprises, orundertakings or concerted practices of enterprises that have orare likely to have as their object or effect the prevention,restriction or distortion of competition within Seychelles, areprohibited unless they are excluded in accordance with theprovisions of this Sub-Part.

(2) Subsection (1) applies to agreements, practices,undertakings or decisions that —

(a) directly or indirectly fix purchase or sellingprices, or determine any other tradingconditions;

(b) limit or control production, markets,technical development or investment;

(c) provide for the artificial dividing up ofmarkets or sources of supply;

(d) affect tenders to be submitted in response to arequest for bids; including —

not to submit a bid in response to a callor request for bids or tenders; or

as bidders they submit, in response to a

Sub-Part II - Agreements etc Preventing, Restricting orDistorting Competition

11.

(i)

(ii)

Provisionsrestricting,preventing ordistortingcompetition

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(a) the structure of the market likely to beaffected by the proposed merger;

(b) the degree of control exercised by theenterprises concerned in the proposedmerger in the market, and particularly theeconomic and financial power of theenterprises;

(c) the availability of alternatives to the servicesor goods supplied by the enterprisesconcerned in the merger;

(d) the likely effect of the proposed merger onconsumers and the economy; and

(e) the actual or potential competition fromother enterprises and the likelihood ofdetriment to competition.

(1) An enterprise engaged in the business of producingor supplying goods or services shall not, directly orindirectly—

(a) by agreement or promise, intimidation orthreat or any like means, attempt to influencean increase, the maintenance or a reductionof the price at which any other enterprisesupplies or offers to supply, or advertises forgoods or services; or

(b) refuse to supply goods or services to, orotherwise discriminate against, any otherenterprise engaged in business because ofthe low pricing policy of that enterprise or forany other reason.

(2) Subsection (1) does not apply where the enterpriseattempting to influence the conduct of another enterprise, and

Sub-Part V - Anti-Competitive Business Conduct

25.Price fixing

call or request, bids or tenders that arearrived at by agreement between oramong themselves, unless enterprisesare not able to submit their bidsindividually;

(e) apply dissimilar conditions to equivalenttransactions with other parties engaged in thesame trade, thereby placing those otherparties at a competitive disadvantage; or

(f) make the conclusion of agreements subjectto acceptance by parties other than the offerorof supplementary obligations which, by theirnature or according to commercial usage,have no connection with the subject of suchagreements.

(3) Subsection (1) applies only if the agreement,practice, undertaking or decision is, or is intended to be,implemented in Seychelles.

(4) Subsection (1) does not apply to —

(a) an agreement or a category of agreements theconclusion of which has been authorisedunder section 28(2); or

(b) an agreement, a practice, an undertaking or adecision that in the opinion of theCommission —

contributes to the improvement ofproduction of goods, supply of goodsand services, or the promotion oftechnical or economic progress, whileallowing consumers a fair share of theresulting benefits;

imposes on the enterprises concerned

(i)

(ii)

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(2) An application under subsection (1) shall be madein the prescribed form and accompanied by the prescribedinformation.

(3) Subsection (1) shall apply to any public bid for thecontrol of an enterprise.

(1) An enterprise seeking permission to effect a mergerunder section 22(1) shall —

(a) demonstrate that if the merger was notcompleted it is not likely that the relevantefficiency gains would be realised by meansthat would limit competition to a lesserdegree than the merger; or

(b) demonstrate that reasonable steps have beentaken within the recent past to identifyalternative purchasers for the assets of thefailing business, and describe in detail theresults of the search for alternativepurchasers.

(2) A merger may be permitted if the parties establishthat —

(a) the merger is likely to bring about gains inreal as distinct from pecuniary efficienciesthat are greater than or more than offset theeffects of any limitation on competition thatresult or are likely to result from the merger;or

(b) one of the parties to the merger is faced withactual or imminent financial failure, and themerger represents the least anti-competitiveamong the known alternative uses for theassets of the failing business.

In determining, in any particular case whether togrant permission, the Commission shall take into account thefollowing —

23.

24.

Permittedmerger

Factors to beconsideredbefore grant ofpermission

only such restr ict ions as areindispensable to the attainment of theobjectives mentioned in subparagraph(i); or

does not afford such enterprises thepossibility of eliminating competitionin respect of a substantial part of thegoods or services concerned.

(5) An agreement or decision which is prohibited bysubsection (1) is void.

(1) An enterprise shall not give effect to anexclusionary provision in an agreement where the agreementis entered into or arrived at between enterprises any two ormore of which are in competition with each other, if the effectof the provision is to prevent, restrict or limit —

(a) the supply of goods or services to; or

(b) the acquisition of goods or services from,

any particular enterprise or class of enterprise either generallyor in particular circumstances or conditions, by all or any of theparties to the agreement.

(2) For the purposes of subsection (1), an enterprise isin competition with another enterprise if the first mentionedenterprise is, or is likely to be or in the absence of the provisionreferred to in subsection (1), would be or would be likely to be,in competition with the other enterprise, in relation to thesupply or acquisition of all or any of the goods or services towhich that provision relates.

.(1) Section 14 provides for an agreement to beexamined by the Commission on the application of a party to it,if the party considers that it may infringe the prohibition insection 11(1) or 12 (1).

(iii)

12.

13

Agreementscontainingexclusionaryprovision

Request forCommission toexamineagreement

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(a) supplies of goods were withheld from adealer;

(b) during a period ending immediately beforethe supplies were so withheld, the supplierwas doing business with the dealer or wassupplying goods of the same description toother dealers carrying on business in similarcircumstances; and

(c) the dealer, to the knowledge of the supplier,had within the preceding 6 months acted asdescribed in section 19(1)(a) or hadindicated its intention to act as described insection 19(1)(b) in relation to the goods inquestion.

(5) Subsections (3) and (4) do not apply where theproof that supplies were withheld consists only of evidence ofrequirements imposed by the supplier in respect of the time atwhich or the form in which payment was to be made for goodssupplied or to be supplied.

All mergers involving an enterprise that—

(a) by itself controls; or

(b) together with any other enterprise withwhich it intends to effect the merger is likelyto control,

40 per cent of a market or such other amounts as the Ministermay prescribe are prohibited unless permitted by theCommission in accordance with this Sub-Part.

(1) Where an enterprise referred to in subsection (1) isdesirous of effecting a merger, it shall apply to the Commissionfor permission to effect the merger.

Sub-Part IV - Control of Merger Situation by Commission

21.

22.

Merger

Application toCommission formerger

(2) Schedule 3 provides for the procedure to befollowed —

(a) by a party making such an application; and

(b) by the Commission, in considering such anapplication.

(1) A party to an agreement which applies for theagreement to be examined under this section shall —

(a) notify the Commission of it; and

(b) apply to it for guidance.

(2) On an application under this section, theCommission may give the applicant guidance as to whether ornot, in its view, the agreement is likely to infringe theprohibition in section 11(1) if it is not excluded, or 12(1).

(3) Where an agreement to which a prohibition applieshas been notified to the Commission under this section, nopenalty is to be imposed under this Sub-Part in respect of anyinfringement of the prohibition by the agreement which occursduring the period —

(a) beginning with the date on which notificationwas given; and

(b) ending with such date as may be specified ina notice in writing given to the applicant bythe Commission when the application hasbeen determined.

(4) The date specified in the notice under subsection(3)(b) may not be earlier than the date on which the notice isgiven.

(1) This section applies to an agreement if theCommission has determined an application under section 14(2)by giving guidance that the agreement is unlikely to infringe

14.

15. Effect ofguidance

Notification forguidance

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goods shall be treated as withholding supplies from a dealer,where —

(a) the supplier refuses or fails to supply thosegoods to the order of the dealer;

(b) the supplier refuses to supply those goods tothe dealer except at prices, or on terms orconditions as to credit, discount or othermatters, which are significantly lessfavourable than those at or on which thatsupplier normally supplies those goods toother dealers carrying on business in similarcircumstances; or

(c) the supplier enters into an agreement tosupply goods to the dealer and treats it in amanner significantly less favourable thanthat in which the supplier normally treatsother dealers in the goods supplied in respectof times or methods of delivery, or othermatters arising in the execution of theagreement.

(2) A supplier shall not be treated as withholdingsupplies of goods on any ground mentioned in section 19(1) if,in addition to that ground, the supplier has other groundswhich, standing alone, would justify the withholding of thosesupplies.

(3) Subject to subsection (5), where in proceedingsbrought against a supplier of goods in respect of acontravention of section 19, the matters specified in subsection(4) are proved, it shall be presumed, unless the contrary isproved, that the supplies were withheld on the ground that thedealer had acted or was likely to act as described in that section.

(4) For the purposes of subsection (3), the following arerequired to be proved —

the prohibition in section 11(1) regardless of whether or not it isexcluded, or 12(1).

(2) The Commission shall take no further action underthis Sub-Part with respect to an agreement to which this sectionapplies, unless —

(a) it has reasonable grounds for believing thatthere has been a material change ofcircumstance since it gave its guidance;

(b) it has a reasonable suspicion that theinformation on which it based its guidancewas incomplete, false or misleading in amaterial particular; or

(c) a complaint about the agreement has beenmade to it by a person which is not a party toit.

(3) A penalty may not be imposed under this Sub-Partin respect of any infringement of a prohibition by an agreementto which this Sub-Part applies.

(4) The Commission, however, may remove theimmunity given by subsection (3) if —

(a) it takes action under this Sub-Part withrespect to the agreement in one of thecircumstances mentioned in subsection (2);

(b) it considers it likely that the agreement willinfringe the prohibition; and

(c) it gives notice in writing to the party on theapplication of which the guidance was giventhat it is removing the immunity as from thedate specified in the notice.

(5) If the Commission has a reasonable suspicion thatinformation —

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insofar as it regulates the price at which goods produced orprocessed by the licensee or assignee may be sold by the dealer.

(1) It is unlawful for a supplier to withhold supplies ofany goods from a dealer seeking to obtain them for resale onthe ground that the dealer —

(a) has sold goods obtained either directly orindirectly from that supplier at a price belowthe resale price or has by other meanssupplied such goods either directly orindirectly to a third party which had done so;or

(b) is likely, if the goods are supplied to it, to sellthem at a price below that price, or supplythem either directly or indirectly to a thirdparty who would be likely to supply thegoods at a price below that paid for thosegoods.

(2) Where under this section it would be unlawful for asupplier to withhold supplies of goods, it is also unlawful forthat supplier to cause or procure any other supplier to do so.

(3) In this section “the resale price”, in relation to a saleof goods of any description, means any price —

(a) notified to the dealer or otherwise issued byor on behalf of a supplier of the goods inquestion, whether lawfully or not, as theprice or minimum price which is to becharged or is recommended as appropriate,for a sale of goods of that description; or

(b) agreed to be charged for goods, by anagreement between the dealer and anysupplier of the goods.

(1) For the purposes of this Sub-Part, a supplier of

19.

20.

Maintenance ofminimum resaleprices

Withholdingsupplies

(a) on which it based its guidance; and

(b) which was provided to it by a party to theagreement,

was incomplete, false or misleading in a materialparticular, the date specified in the notice undersubsection (4)(c) may be earlier than the date onwhich the notice is given.

(1) It is unlawful for any two or more enterprises thatare suppliers of goods, or their agents, to enter into or carry outany agreement whereby the enterprises or their agents, as thecase may be, undertake to —

(a) supply goods only to dealers, whether thosedealers are parties to the agreement or not,which undertake to resell or have resoldgoods in accordance with agreed conditionsas to the price at which those goods may beresold; or

(b) supply goods to dealers that resell or haveresold goods in breach of any conditions as tothe price at which those goods may be resoldon terms less favourable than thoseapplicable in the case of other dealerscarrying on business in similar circum-stances, or withhold supplies of goods fromsuch dealers.

(2) It is unlawful for an enterprise that is a supplier ofgoods or its agent to enter into or carry out any agreement—

(a) whereby it undertakes to withhold orders forsupplies of goods from suppliers, whetherparties to the agreement or not, which —

Sub-Part III - Resale Price Maintenance

16. Collectiveagreements bydealers orsuppliers

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)

(b) require, as a condition of supplying goods toa dealer, the inclusion in the agreement of anyterm or condition or the giving of anyundertaking that is void in accordance withsubsection (1);

(c) notify to dealers, or otherwise publish inrelation to any goods, a price stated orcalculated to be understood as the minimumprice which may be charged on the resale ofthose goods.

(3) Subsection (2)(a) does not affect the enforceabilityof an agreement except in respect of the term or conditionwhich is void by virtue of this section.

(4) Nothing in subsection (2 (c) shall be construed asprecluding a supplier or an agent acting on a supplier's behalf,from notifying to dealers or otherwise publishing pricesrecommended as appropriate for the resale of goods supplied orto be supplied by the supplier.

(1) Section 17 applies to patented goods and goodsmade by a patented process as it applies to other goods.

(2) Notice of any term or condition which is void byvirtue of section 17, or which would be so void if included in anagreement relating to the sale of any such goods, is of no effectfor the purpose of limiting the right of a dealer to dispose ofthose goods without infringement of the patent.

(3) Nothing in section 17 and this section affects thevalidity, as between the parties to an agreement and theirsuccessors, of any term or condition of —

(a) a licence granted by the proprietor of a patentor a licensee under any such licence; or

(b) any assignment of a patent,

18. Patented goods

(i)

(ii)

supply or have supplied goods withoutimposing a condition respecting theminimum price at which goods may beresold; or

refrain from taking steps to ensurecompliance with the condition referredto under subparagraph (i) in respect ofgoods supplied by them; or

(b) that permits discrimination in its handling ofgoods supplied under subsection (1).

(3) It is unlawful for those enterprises or their agentsreferred to in subsection (1) or the enterprise or its agentreferred to in subsection (2) to enter into or carry out anyagreement authorising —

(a) the recovery of penalties, howeverdescribed, by or on behalf of the parties to theagreement from dealers who re-sell or haveresold goods in breach of any conditiondescribed in subsection (1) or (2); or

(b) the conduct of any proceedings inconnection with the recovery of penalties asdescribed in paragraph (a).

(4) An agreement that contravenes any of theprovisions of this section is void.

(1) A term or condition of an agreement for the sale ofany goods by a supplier to a dealer is void to the extent that itpurports to establish or provide for the establishment ofminimum prices to be charged on the resale of those goods.

(2) Subject to subsections (3) and (4), it is unlawfulfor a supplier of goods or its agent to —

(a) include in an agreement for the sale of goodsa term or condition which is void by virtue ofthis section;

17.Agreement reminimum resaleprice void

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