Part 2: Competition Investigations Section 121: Duty to preserve documents relevant to investigations
This section makes provision amending Part 1 of the Competition Act 1998 to impose a duty to preserve documents where a person knows or suspects that an investigation is, or is likely to be, carried out by the CMA.
	Subsections (1) and (2) make provision for the insertion of section 25B into the Competition Act 1998. Section 25B(1) sets out that the duty applies where a person knows or suspects that an investigation is, or is likely to be, carried out by the CMA. Subsection (2) of section 25B sets out the actions which are prohibited where the duty arises. As defined in section 59 of the Competition Act 1998, documents for this purpose include information recorded in any form.
	The duty to preserve evidence arises from the point that a person has knowledge of, or suspects, that an investigation under section 25 of the Competition Act 1998 either is being carried out, or is likely to be carried out. In practice, the duty would arise where a business receives a case initiation letter from the CMA and so is aware that its conduct is under investigation. It may further arise where, for example, an individual working for a business is aware that a customer has reported their suspicions of price fixing and that the customer has been interviewed by the CMA, or members of an anti-competitive agreement are "tipped off" that a member of the agreement has blown the whistle to the CMA. The duty would apply in this case to the individual and their employer.
	Subsection (3) amends section 40ZE of the Competition Act 1998 (inserted by paragraph 8 of Schedule 8 to this Act), which sets out the powers of the CMA (and sector regulators) to impose a financial penalty on a person if, without reasonable excuse, they fail to comply with a requirement specified in that section which has been imposed for the purposes of an investigation under section 25. Subsection (3) amends section 40ZE so that failure to comply with the new duty, without a reasonable excuse, gives rise to liability for a financial penalty.