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On 21 May 1986 the Director General of Fair Trading sent the following reference to the Commission:

REFERENCE TO MONOPOLIES AND MERGERS COMMISSION
THE SUPPLY OF PEST CONTROL SERVICES

The Director General of Fair Trading in exercise of his powers under sections 47(1), 49(1) and 50(1) of the Fair Trading Act 1973 hereby refers to the Monopolies and Mergers Commission (the Commission) the matter of the existence or possible existence of a monopoly situation in relation to the supply of pest control services in the United Kingdom.

The Commission shall investigate and report on the questions whether a monopoly situation exists and, if so

(a) by virtue of which provisions of sections 6 to 8 of the said Act that monopoly situation is to be taken to exist;

(b) in favour of what person or persons that monopoly situation exists;

(c) whether any steps (by way of uncompetitive practices or otherwise) are being taken by that person or persons for the purpose of exploiting or maintaining the monopoly situation and, if so, by what uncompetitive practices or in what other way;

(d) whether any action or omission on the part of that person or those persons is attributable to the existence of that monopoly situation and, if so, what action or omission and in what way it is so attributable; and

(e) whether any facts found by the Commission in pursuance of their investigation under the preceding provisions of this paragraph operate or may be expected to operate against the public interest.

For the purposes of this reference ' pests' means insects, rodents and birds; 'pest control services' means the undertaking and performance for gain or reward of engagements to prevent or remedy infestation by pests, but does not include the undertaking and performance of engagements to prevent or remedy the infestation by pests of animals, or of trees or crops growing in the open air, or damage by woodworm and other wood-boring insects.

The Commission shall report on this reference within a period of two years from the date hereof.

(Signed) GORDON BORRIE
21 May 1986 Director General of Fair Trading

On 4 June 1986 the Chairman of the Commission, acting under section 4 and Part II of Schedule 3 of the Fair Trading Act 1973, directed that the functions of the Commission in relation to the reference should be discharged through a group consisting of six members of the Commission including himself as Chairman of the group. The composition of the group is indicated in the list of
members which prefaces this report.

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