If Ofcom finds that BT is in breach of the undertakings then what powers of enforcement or sanction does it have?
The undertakings are enforceable under the Enterprise Act 2002. As part of the undertakings, Ofcom has the power to issue directions to BT to remedy any breaches. Under that Act, Ofcom can bring an action in the High Court if BT breaches the undertakings. If it emerges that undertakings are failing to address the competition problems outlined in the Strategic Review of Telecommunications then Ofcom has the power to open an investigation with a view to making a Market Investigation Reference to the Competition Commission. However, under the Enterprise Act, Ofcom cannot make a reference within twelve months, unless the undertakings have been breached.
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