Explanatory note

These Regulations make provision for the purposes of sections 35B(4) and 40A(3A) of the Competition Act 1998 (c. 41) for determining the turnover of an undertaking.

The Digital Markets, Competition and Consumers Act 2024 (c. 13) amends Part 1 of the Competition Act 1998 in respect of enforcement, including the calculation of penalties. Section 35B of the Competition Act 1998 sets out the maximum penalties that the Competition and Markets Authority (“the CMA”) may impose under section 35A of that Act. Section 40A of the Competition Act 1998 sets out the maximum penalties that the CMA may impose under section 40ZE of that Act.

Those sections provide for maximum penalties for a person who is an undertaking by reference to the turnover and daily turnover of the undertaking on whom the penalty is imposed.

Regulation 2 and the Schedule make provision for determining the turnover and daily turnover of an undertaking.

The impact assessments completed for the Digital Markets, Competition and Consumers Bill, introduced to Parliament on 25th April 2023, contain an assessment of the effect that the reforms to the competition regime will have on the costs of business, the voluntary sector and the public sector. They are available at: https://bills.parliament.uk/bills/3453/publications. Printed copies can be obtained from the Department for Business and Trade, Old Admiralty Building, Admiralty Place, London SW1A 2DY.