Regulation 3 Exemption

(1)

The prescribed circumstances in which agreements in relation to which a ruling may be given by virtue of Article 84 of the Treaty are exempt from the Chapter I prohibition are—

(a)

that an agreement is exempt from the Community prohibition by virtue of a decision by the Director under the enforcement regulations; and

(b)

that the Director has not found that an agreement which would otherwise benefit from a section 11 exemption has effects in the United Kingdom, or a part of it, which are incompatible with the conditions laid down in section 9 of the Act.

(2)

A section 11 exemption—

(a)

subject to paragraph (3), takes effect on the date on which the relevant exemption from the Community prohibition takes effect, and

(b)

ceases to have effect on the date on which—

(i)

a cancellation of the relevant exemption from the Community prohibition pursuant to the enforcement regulations takes effect;

(ii)

the relevant exemption from the Community prohibition otherwise ceases to have effect; or

(iii)

a finding is made by the Director that the agreement to which the relevant exemption relates has effects in the United Kingdom, or a part of it, which are incompatible with the conditions laid down in section 9 of the Act.

(3)

A section 11 exemption may, if the Director considers it appropriate and so determines, take effect from a date specified by the Director which is earlier than the date on which the exemption from the Community prohibition takes effect.

(4)

The Director shall not make a finding that the agreement to which the relevant exemption relates has effects in the United Kingdom, or a part of it, which are incompatible with the conditions laid down in section 9 of the Act unless he does so in the manner specified in rule 21 of the Director’s rules.