300.This section concerns the role and duties of the Competition Commission following receipt of a report from the DGFT. It is supplemented by the provisions of Schedule 14.
301.There are two types of report which the Commission must consider under this section and on which it must produce a report.  The first is a report by the DGFT which concludes that particular regulating provisions or practices of the Authority have a significantly adverse effect on competition (type A).  The second is a report by the DGFT which concludes that particular regulating provisions or practices do not have such an effect, but where the DGFT has referred the matter to the Commission for further consideration (type B).  (If the DGFT does not ask the Commission to consider a type B report, then that is the end of the matter.)
302.Subsection (4) provides that the Commission’s report must state its conclusions as to whether the regulatory provisions or practices have a significantly adverse effect on competition.  If it concludes that there is no such effect (that is, it agrees with a type B report or disagrees with a type A report), then that is the end of the matter.  No further action can be taken.
303.If, however, the Commission concludes that there is such an effect, then subsection (5) requires it to state in its report whether it considers that the effect is justified.  In taking this decision, subsection (7) requires the Commission, as far as is reasonably possible, to reach a conclusion which the Authority could have reached given the obligations which the Act places on the Authority and the functions which it confers.   In its report, the Commission  has to state what action, if any, ought to be taken by the Authority in the light of the unjustified anti-competitive effect.  This could include the Authority changing its rules or practices in specified ways.
304.Any report produced by the Commission under this section has to be sent to the Treasury, the Authority and the DGFT.  Subsection (2) provides that the Commission does not need to produce a report where there has been a change of circumstances which makes it unnecessary.  For example, the Authority may, once it has received the DGFT’s report, change the rule in question, or stop engaging in a particular practice, so that the adverse effect on competition identified by the DGFT is removed.
Commentary on Sections Part X: Rules and Guidance Chapter III: Competition Scrutiny Section 162: Consideration by the Competition Commission