Chapter 3: Producer Organisations Section 31: Recognised organisations: competition exemptions and further provision
This section sets out the exemptions from general competition law, which are available to recognised organisations, and confers power on the Secretary of State to make further provision about recognised organisations.
	Subsection (1) refers to Schedule 2, which amends the Competition Act 1998 to give domestic effect to competition exemptions framed in similar terms to those that currently exist in EU legislation. This is necessary because the exemptions are currently given effect by section 10 of the Competition Act 1998, which is going to be "turned off" when the equivalent retained EU legislation repealed, and a new domestic PO regime is introduced. The exemptions will allow the members of recognised organisations to collaborate in carrying out activities in ways that would normally be prohibited under general competition law, as long as the organisations comply with conditions intended to ensure that the benefit of their coordinated activities justifies any adverse effects on competition.
	Subsection (2) allows the Secretary of State, by regulations, to make further provision about recognised organisations.
	Subsection (3) provides examples of such further provision; including introducing further requirements or reporting obligations with which a recognised organisation needs to comply. These will ensure that a recognised organisation continues to operate in a way that justifies the freedom its members enjoy when operating outside of the normal competition rules and includes the power to make provisions about monitoring and enforcement.
	Subsection (4) details the type of provisions that may be introduced under subsection (3), to monitor and enforce compliance with ongoing recognition requirements.
	Subsection (5) specifies that the provisions introduced under subsection (2) may also include provisions regarding the ability for POs, APOs and IBOs to delegate some of their functions. In the absence of such provision, it would not be clear that a third party carrying out a recognised organisation’s functions benefitted from the competition exemption enjoyed by the recognised organisation in respect of those functions.
	Subsection (6) contains definitions.