The Competition and Markets Authority (CMA) is consulting, as part of a wider package of proposals, on changes to settlement discounts available for non-cartel and abuse of dominance conduct under the Competition Act 1998 (CA98).
The PSR proposes to align its guidance on settlement discounts with the CMA’s decision following the consultation. We encourage you to send any comments you may have on the proposals to the CMA (see the CMA’s consultation page) and raise any payment specific views you may have with us by 13 September 2024.
Settlement in the context of CA98 enforcement cases
Settlement is the process whereby a business under investigation admits that it has breached competition law and confirms that it accepts that a streamlined administrative procedure will govern the remainder of the investigation. If so, the authority will impose a reduced penalty, by offering a ‘settlement discount’.
The CMA is proposing the following change
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Current settlement policy |
CMA proposed policy |
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Maximum settlement discount that a settling party can obtain in relevant cases is 20% pre-Statement of Objections (SO) and 10% post-SO. |
Discounts for non-cartel conduct of up to 40% for settlement pre-SO and up to 25% for settlement post-SO. |
The PSR, as with the other concurrent regulators in the UK, has always aligned its settlement discount policy to that of the CMA and we see value in continuing to do so. This is because consistency is important as it preserves neutrality from a business perspective on which regulators take enforcement action.
What happens next?
Following the outcome of the CMA’s consultation and subject to sector-specific stakeholder feedback, the PSR intends to amend its CA98 guidance to align with the CMA’s revised settlement policy.
Any amendments to the CA98 guidance may also take place alongside other housekeeping revisions to our CA98 guidance.
The PSR encourages you to respond to the CMA’s consultation and raise any sector-specific views with us by 13 September 2024.
If you wish to submit comments directly to us, please email CA98Settlement@psr.org.uk.