Supply of Milk in Scotland referred to the Competition Commission

Terms of Reference

The Director General of Fair Trading in the exercise of his powers under sections 9(1), 10(3), 10(4), 47(1), 49(1) and 50(1) of the Fair Trading Act 1973 hereby refers to the Competition Commission the matter of the existence or possible existence of a monopoly situation in relation to the supply of fresh processed milk to middle-ground retailers.

The Commission shall investigate and report on the questions whether a monopoly situation exists and, if so:

by virtue of which of the provisions of sections 6 to 8 of the said Act that monopoly situation is to be taken to exist;
in favour of what person or persons that monopoly situation exists;
whether any steps (by way of uncompetitive practices or otherwise) are being taken by that person or persons for the purpose of exploiting or maintaining the monopoly situation and, if so, by what uncompetitive practices or in what other way;
whether any action or mission on the part of that person or persons is attributable to the existence of that monopoly situation and, if so, what action or omission and in what way it is so attributable; and
whether any facts found by the Commission in pursuance of their investigations under the preceding provisions of this paragraph operate or may be expected to operate against the public interest.

The Commission shall limit their consideration to Scotland.

The Commission shall report upon this reference within a period of nine months from the date hereof.

For the purpose of this reference:

"fresh processed milk" means liquid cows' milk processed otherwise than by UHT or by sterilisation;

"middle-ground retailer" means a retailer other than:

ASDA Group plc, Marks & Spencer plc, Safeway plc, J Sainsbury plc, Somerfield Stores plc, Tesco plc and each of their subsidiaries , and
a retailer whose sole business is
(i) the delivery of fresh processed milk; or
(ii) the delivery of fresh processed milk and other goods -
to households.

"subsidiary" has the meaning given by section 736(1) of the Companies Act 1985 as substituted by section 144(1) of the Companies Act 1989.