The Digital Markets, Competition and Consumers Act 2024 and Consumer Rights Act 2015 (Turnover and Control) Regulations 2024

Schedule 3 Turnover of a person (penalties for infringements of consumer protection law)

Regulations 5 and 7 Interpretation 1 (1) In this Schedule— “credit institution” means a credit institution as defined in section 417 of the Financial Services and Markets Act 2000 (definitions); “financial institution” means a financial institution as defined in Article 4(1)(26) of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012 (definitions), or any undertaking located outside the United Kingdom which does not fall within that definition but which carries on equivalent activities; “insurance undertaking” means— an insurance undertaking as defined in section 417 of the Financial Services and Markets Act 2000, a reinsurance undertaking as defined in section 417 of the Financial Services and Markets Act 2000, an overseas insurance undertaking, or an overseas reinsurance undertaking; “overseas insurance undertaking” means an undertaking— with a head office located in a country or territory other than the United Kingdom, and which effects or carries out contracts of insurance as principal; “overseas reinsurance undertaking” means an undertaking— with a head office located in a country or territory other than the United Kingdom, and which effects or carries out contracts of insurance that are limited to reinsurance contracts as principal; “product” means— goods; services; digital content. (2) The provisions of this Schedule are to be interpreted in accordance with generally accepted accounting principles and practices. Turnover of a person 2 (1) The turnover of a person is the sum of all amounts derived directly or indirectly by the person from its supply of products, after the deduction of sales rebates, value added tax and other taxes directly related to turnover. (2) Paragraphs 5 and 6 also apply to determine the turnover of a person. (3) But where all or any of the activities of a person are the activities of a credit institution, a financial institution or an insurance undertaking, paragraph 3 or 4 (as the case may be) applies instead of sub-paragraph (1) to determine the turnover of the person in respect of those activities. Turnover in respect of activities as a credit institution or financial institution 3 (1) The turnover of a person in respect of its activities as a credit institution or financial institution is the sum of the following income items received by the person, after the deduction of value added tax and other taxes directly related to those items— (a) interest income and similar income; (b) the following income from securities— (i) income from shares and other variable yield securities; (ii) income from participating interests; (iii) income from shares in affiliated undertakings; (c) commissions receivable; (d) net profit on financial operations; (e) other operating income. (2) Expressions used in sub-paragraph (1) have the meanings given by Council Directive (EEC) 86/635 of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions. (3) Paragraphs 5 and 6 also apply to determine the turnover of a person in respect of its activities as a credit institution or financial institution. Turnover in respect of activities as an insurance undertaking 4 (1) The turnover of a person in respect of its activities as an insurance undertaking is the total value of gross premiums received, comprising all amounts received and receivable in respect of insurance contracts issued by or on behalf of the person, including outgoing reinsurance premiums, and after deduction of taxes and parafiscal contributions or levies charged by reference to the amounts of individual premiums or the total volume of premiums. (2) Paragraphs 5 and 6 also apply to determine the turnover of a person in respect of its activities as an insurance undertaking. Subsidies 5 (1) The turnover of a person includes any subsidy given to the person, determined in accordance with this paragraph. (2) For the purposes of sub-paragraph (1), “subsidy” means financial assistance which— (a) is given, directly or indirectly, from public resources by a public authority, (b) confers an economic advantage on one or more businesses, and (c) is specific such that it benefits one or more businesses over one or more other businesses with respect to the production or supply of products. (3) For the purposes of sub-paragraph (2), the means by which financial assistance may be given include— (a) a direct transfer of funds (such as grants or loans); (b) a contingent transfer of funds (such as guarantees); (c) the forgoing of revenue that is otherwise due; (d) the supply of products; (e) the purchase of products. (4) For the purposes of sub-paragraph (2)(a), “public authority” means a person who exercises functions of a public nature. (5) Financial assistance given by a person who is not a public authority is to be treated for the purposes of sub-paragraph (2)(a) as financial assistance given from public resources by a public authority if the involvement of a public authority in the decision to give financial assistance is such that the decision is, in substance, the decision of the public authority. (6) For the purposes of sub-paragraph (5), the factors which may be taken into account when considering the involvement of a public authority in the decision of a person to give financial assistance include, in particular, factors relating to— (a) the control exercised over that person by that public authority, or (b) the relationship between that person and that public authority. (7) For the purposes of this paragraph, financial assistance is to be treated as given to a person if the person has an enforceable right to the financial assistance. Further provisions about determining turnover 6 (1) Where, by reason of section 204(1)(b) or (c) of the 2024 Act (determination of turnover) or (as the case may be) paragraph 16H(1)(b) or (c) of Schedule 5 to the 2015 Act (meaning of turnover for purposes of paragraphs 16A and 16C), the turnover of a person (“A”) includes the turnover of one or more other persons, the turnover of A does not include amounts derived from the supply of products between any of those persons, or any of those persons and A. (2) Where in the accounts or other information used by the court or, as the case may be, the CMA to calculate the turnover of a person any figure is expressed in a currency other than sterling, the court or the CMA may determine the equivalent in sterling, applying whatever rate or rates of exchange the court or the CMA considers appropriate and rounding the resulting figure up or down as the court or the CMA considers appropriate. (3) Where an acquisition, divestment or other transaction or event has occurred since the end of the period by reference to which the turnover of the person is determined in accordance with regulation 5 or regulation 7 which the court or, as the case may be, the CMA considers may have a significant impact on the turnover of the person, the court or the CMA may take account of that acquisition, divestment or transaction or event if the court or the CMA considers it appropriate to do so and accordingly increase or (as the case may be) reduce by such amount as the court or the CMA considers appropriate the amount which would otherwise constitute the person's turnover.