1. BIICL Seventh Annual Trans-Atlantic Dialogue UK Market Investigations and the Role of the Competition Commission Peter Freeman 2 May 2007

2. PURPOSE AND CONTEXT  Successor to monopolies regime  Reference to CC: discretion not duty  Legal framework: adverse effect on competition (AEC)  Duty to remedy AEC; wide-ranging powers Structural and behavioural remedies Recommendations to de-regulate

3. WHAT ARE WE TRYING TO DO?  Investigate features of markets where competition is not effective  Identify any (significant) adverse effects and any resulting customer detriment  Work out appropriate remedies to be applied directly by us, or by recommendations to others  Conduct a thorough and fair investigation and to produce a decision that is clear and understandable, with the conclusions clearly based on the evidence

4. MARKET INVESTIGATION CASES  Store Card Credit Services  Bulk Domestic LPG  Home Credit  Classified Directory Advertising Services  Northern Irish Personal Banking*  Groceries*  Payment Protection Insurance*  BAA Airports* * = in progress

5. HOW THEY ARE DONE Issues Statement Emerging Thinking and Working Papers Provisional Findings Two-year time limit Information gathering and analysis Final Report Remedies Notice Hearings - main and third parties Provisional Decision on Remedies (if needed) Administrative Timetable Initial stages Report drafting

6. THE PATTERN OF CASES Completed Cases Market size (annual revenue) Annual consumer detriment (CC estimate) Store Cards£ 670 mAt least £55 m Bulk Domestic LPG~ £120 m£4 m - £13 m Home Credit>£700 mAt least £ 75 m CDAS~ £825 mNot quantified Cases in Progress NI Personal Banking£167 m[In progress] Groceries£123,500 m[In progress] PPI~£5,350 m[In progress] BAA Airports ~£2,500 m[In progress] Market size estimates from CC reports or parties; consumer detriment estimates from CC reports.