{
  "url": "https://openlegislation.uk/competition-act-1998/section-36",
  "json_url": "https://openlegislation.uk/competition-act-1998/section-36.json",
  "legislation": "ukpga/1998/41",
  "legislation_title": "Competition Act 1998",
  "legislation_url": "https://openlegislation.uk/competition-act-1998",
  "path": "section/36",
  "kind": "section",
  "number": "36",
  "heading": "Penalties.",
  "text": "(1) On making a decision that an agreement has infringed the Chapter I prohibition ..., the CMA may require an undertaking which is a party to the agreement to pay the CMA a penalty in respect of the infringement.\n(2) On making a decision that conduct has infringed the Chapter II prohibition ..., the CMA may require the undertaking concerned to pay the CMA a penalty in respect of the infringement.\n(3) The CMA may impose a penalty on an undertaking under subsection (1) or (2) only if the CMA is satisfied that the infringement has been committed intentionally or negligently by the undertaking.\n(4) Subsection (1) is subject to section 39 and does not apply in relation to a decision that an agreement has infringed the Chapter I prohibition if the CMA is satisfied that the undertaking acted on the reasonable assumption that that section gave it immunity in respect of the agreement.\n(5) Subsection (2) is subject to section 40 and does not apply in relation to a decision that conduct has infringed the Chapter II prohibition if the CMA is satisfied that the undertaking acted on the reasonable assumption that that section gave it immunity in respect of the conduct.\n(6) Notice of a penalty under this section must—\n(a) be in writing; and\n(b) specify the date before which the penalty is required to be paid.\n(7) The date specified must not be earlier than the end of the period within which an appeal against the notice may be brought under section 46.\n(7A) In fixing a penalty under this section the CMA must have regard to—\n(a) the seriousness of the infringement concerned, and\n(b) the desirability of deterring both the undertaking on whom the penalty is imposed and others from—\n(i) entering into agreements which infringe the Chapter 1 prohibition ..., or\n(ii) engaging in conduct which infringes the Chapter 2 prohibition ....\n(8) No penalty fixed by the CMA under this section may exceed 10% of the turnover of the undertaking (determined in accordance with such provisions as may be specified in an order made by the Secretary of State).\n(9) Any sums received by the CMA under this section are to be paid into the Consolidated Fund.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 36(1) omitted (31.12.2020) by virtue of The Competition (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/93), regs. 1(1), 12(a) (with Sch. 4 paras. 7, 13) (as amended by S.I. 2020/1343, regs. 35-59); 2020 c. 1, Sch. 5 para. 1(1)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 36(1)-(5) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 5 para. 20 (with s. 28); S.I. 2014/416, art. 2(1)(d) (with Sch.)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 36(2) omitted (31.12.2020) by virtue of The Competition (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/93), regs. 1(1), 12(b) (with Sch. 4 paras. 7, 13) (as amended by S.I. 2020/1343, regs. 35-59); 2020 c. 1, Sch. 5 para. 1(1)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 36(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 38(28)(c); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 36(4) inserted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(4)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 36(5) inserted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(5)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "S. 36(7A) inserted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), ss. 44(2), 103(3); S.I. 2014/416, art. 2(1)(b) (with Sch.)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 36(7A)(b)(i) omitted (31.12.2020) by virtue of The Competition (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/93), regs. 1(1), 12(c)(i) (with Sch. 4 paras. 7, 13) (as amended by S.I. 2020/1343, regs. 35-59); 2020 c. 1, Sch. 5 para. 1(1)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 36(7A)(b)(ii) omitted (31.12.2020) by virtue of The Competition (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/93), regs. 1(1), 12(c)(ii) (with Sch. 4 paras. 7, 13) (as amended by S.I. 2020/1343, regs. 35-59); 2020 c. 1, Sch. 5 para. 1(1)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Word in s. 36(8)(9) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 5 para. 20 (with s. 28); S.I. 2014/416, art. 2(1)(d) (with Sch.)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Word in s. 36 sidenote substituted (1.5.2004) by The Competition Act 1998 and Other Enactments (Amendment) Regulations 2004 (S.I. 2004/1261), reg. 1(a), Sch. 1 para. 22(6)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1998/41/section/36",
    "retrieved_at": "2026-10-29T09:22:18.972999+00:00",
    "licence": "OGL-UK-3.0",
    "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
    "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
  }
}