# The Enterprise Act 2002 (Mergers) (Interim Measures: Financial Penalties) (Determination of Control and Turnover) Order 2014, Note: Explanatory note


(This note is not part of the Order)
This Order makes provision, for the purposes of section 94A of the Enterprise Act 2002 (c. 40) (“the Enterprise Act”), for determining when an enterprise is to be treated as controlled by a person and for determining the turnover of an enterprise.
The Enterprise and Regulatory Reform Act 2013 (c. 24) (“the 2013 Act”) made changes to the law on merger control under Part 3 of the Enterprise Act. Among other things it abolished the Office of Fair Trading and the Competition Commission, transferring their competition functions to the Competition and Markets Authority (CMA), and made changes to the provisions of the Enterprise Act relating to interim measures in merger inquiries (sections 72, 80 and 81 and paragraph 2 of Schedule 7). As part of this reform of the law on interim measures the 2013 Act inserted new section 94A of the Enterprise Act, which enables the CMA or (depending on the circumstances) the Secretary of State to impose a financial penalty where a person has failed, without reasonable excuse, to comply with an interim measure. Section 94A provides that the penalty must not exceed 5% of the total value of the turnover (both in and outside the United Kingdom) of the enterprises owned or controlled by the person in question. For these purposes, section 94A(3), (4) and (5) confers power on the Secretary of State to make provision, by order, for determining when an enterprise is to be treated as controlled by a person, and for determining the turnover (both in and outside the United Kingdom) of an enterprise. “Enterprise” is defined in section 129(1) of the Enterprise Act.
Article 2 of this Order makes provision for determining when an enterprise is to be treated as controlled by a person.
Article 3 and the Schedule make provision for determining the turnover of an enterprise.
The impact assessment completed for Parts 3 and 4 of the Enterprise and Regulatory Reform Bill, introduced to Parliament on 23rd May 2012, contains an assessment of the effect that the reforms to the competition regime will have on the costs of business and the public and voluntary sectors and is available at the following website:
https://www.gov.uk/government/publications/strengthening-competition-and-creating-a-single-market-authority.

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Source: https://www.legislation.gov.uk/uksi/2014/533/note (the official version)
Page: https://openlegislation.uk/enterprise-act-2002-mergers-interim-measures-financial-penalties-determination-of-control-and-turnover-order-2014/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.