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Consultation on proposal to use National Lottery infrastructure to offer commercial services

The Commission received an application from Camelot to offer commercial services such as mobile phone top-ups, electronic bill payments and other similar services through National Lottery terminals.

The Commission has refused to grant consent to Camelot’s application because of the EU/competition law risks it raises. This decision was arrived at following a detailed consultation process, taking into account the views of interested parties and legal advice in a complicated and developing area of law.

A full rationale for the decision is set out in a statement of reasons which you can download from the left-hand side of this page. Also available is a further report from our economic advisors NERA which is referred to in the statement of reasons.

Details of the consultation process and provisional decision are set out below in date order starting from most recent.

Update 14 March 2011

We have now published the representations which we received from interested parties following the announcement of our provisional decision on 16 July 2011.

You can access the representations using the links in the table below.

1 Representation from Camelot , Annex 1 , Annex 2
2 Representation from Epay
3 Representation from National Federation of Retail Newsagents
4 Representation from National Federation of Subpostmasters
5 Representation from Paypoint
6 Representation from Payzone

Update 28 February 2011

The Commission is mindful of the fact that its decision in respect of Camelot’s proposal to provide Commercial Services might constitute inside information in relation to listed securities and also recognises the broader UK market abuse and insider dealing regimes.

The Commission’s current intention is that its decision will be publicly announced through the LSE Regulatory News Service at 7am on Wednesday 2 March, prior to the opening of the London securities market.

Should there be any change to the arrangements set out above, the Commission will endeavour to communicate any revised arrangements as soon as is practicable

Update: 17 February 2011

The Commission has previously indicated it expects to make a decision on Camelot’s proposal to offer commercial services by the end of February 2011. We are now able to confirm that the Commission expects to take a decision during the week commencing 21 February and to announce its decision as soon as practicable thereafter.

The decision will be announced using the LSE Regulatory News Service and we intend to give parties advance notice of the date.

Consulatation and provisional decision

The Commission received an application from Camelot to offer commercial services such as mobile phone top-ups, electronic bill payments and other similar services through National Lottery terminals. We consulted with interested parties in order to identify any European or competition law considerations which we should take into account when reaching our decision on whether to give our consent to the proposal. The consultation closed on Monday 26 April 2010.

Our provisional decision is not to give consent to the proposal as there is a significant risk of the proposal breaching EU/Competition law. A full explanation of the reason for our decision is set out in our Commercial Services – Statement of Reasons which is available to download from the left-hand side of this page. In order to be fair to all parties we gave the opportunity for them to make any final representations they wanted to on our provisional decision. The closing date for representations was Wednesday 20 October 2010.

Update: 29 September
On 15 September the Commission published on its website a legal Opinion from Sir Francis Jacobs QC, obtained by Camelot. This opinion referred to legal issues being debated by Baker McKenzie LLP (representing Camelot) and the Commission and its solicitors Herbert Smith LLP which took place following our provisional decision not to grant consent. Following requests from interested parties, the Commission has decided that it is appropriate to make available to consultees upon request certain correspondence and other documents related to these discussions.

These documents are being made available in order to demonstrate that our process is completely fair and transparent. In order that all interested parties have time to consider this additional information we have extended the deadline for representations to Wednesday 20 October 2010.

Given the circumstances it is necessary to reassess the timetable for our final decision. We expect to be able to do this once the final representations have been received and it is clear what further work the Commission will need to undertake.

Update: 15 September
Camelot has made a further representation to the Commission relating to our provisional decision. This sets out the view of Sir Francis Jacobs QC on the question of whether the grant of permission to Camelot to offer ancillary services using its lottery related infrastructure would cause the Commission to be in breach of Article 106 (1) of TFEU. This is available to download from the left-hand side of this page. In light of this additional information provided to consultees the Commission has extended the closing date for receipt of representations to the Provisional Decision to Friday 1 October 2010.

The Commission anticipates that it will be in a position to take a final decision on whether to grant or refuse consent to Camelot’s proposal during the course of November 2010

Update: 30 July 2010
Camelot has made a representation to the Commission on our provisional decision. This proposes remedies to the concerns the Commission has as to the legality of the proposals under Competition and EU law and is available to download from the left-hand side of this page. In light of this additional information provided to consultees the Commission has extended the closing date for receipt of representations to the Provisional Decision to 5.00pm on Friday 17 September 2010.

Following the provisional decision of the Commission announced on 16 July 2010, we have published the following documents in order to assist consultees in responding to the Provisional Decision:

  • Responses to the Consultation and some further correspondence received from consultees; which are available from the table below.
  • Two papers prepared for the Commission by NERA, the economic consultants, dated 29 March 2010 and 2 July 2010 which you can download from the left-hand side of this page.

1 Response from Priyas Minimarket
2 Response from National Federation of Retail Newsagents
3 Response from Premier Tilicoultry
4 Response from Wings and Spirits
5 Response from Mr Mahmut Comak
6 Response from Parkem Chemist
7 Response from Robert Goodwill MP
8 Response from Bridge Garage
9 Response from Alex Salmond MP
10 Response from Euronews
11 Response from G and M Fresh Foods Ltd
12 Response from Alison Seabeck MP
13 Response from Burden Off Licence
14 Response from Mark Simmonds MP
15 Response from Mrs J Kullar
16 Response from Rosie Cooper MP
17 Response from Williams Newsagents
18 Response from Jenny Willott MP
19 Response from David Kidney MP
20 Response from David Davis MP
21 Response from Alex Fergusson MSP
22 Response from Paul Sanderson, Navenby Post Office
23 Response from Bechers
24 Response from Christians Against Poverty
25 Response from Justine Greening MP
26 Response from Marple Bridge Stores Ltd
27 Response from Channon News
28 Response from R I Anderson
29 Response from J Symons, Prees Post Office
30 Response from Matthew Taylor MP
31 Response from Jim Mather MSP
32 Response from Mr Vincent Conway
33 Response from Philip Davies MP
34 Response from Association of Convenience Stores
35 Response from David Amess MP
36 Response from Marsha Singh MP
37 Response from Nick Ainger MP
38 Response from Sadiq Khan MP
39 Response from Mike Hancock CBE MP
40 Response from Mr Pangas Patel
41 Response from Andrew Smith MP
42 Response from Paul Burstow MP
43 Response from Joan Waller MP
44 Response from Middleton Cheney Post Office
45 Response from Sharon Hodgson MP
46 Response from Lyn Brown MP
47 Response from Salvation Army
48 Response from Michael Foster MP
49 Response from Patrick Smyth, Horsmonden Post Office
50 Response from Allpay
51 Response from Barbara Follett MP
52 Response from Mr Neil Turner
53 Response from Patrick Mercer MP
54 Response from Rural Shops Alliance
55 Response from Alan Reid MP
56 Response from Gateshead Council
57 Response from John Swinney MSP
58 Response from Cllr Anne Horn
59 Response from Epay
60 Response from National Federation of Subpostmasters
61 Response from Ofgem
62 Response from Vodafone
63 Response from Paypoint
63a Letter from Paypoint to the Commission, 24 June 2010
64 Response from Camelot Group Plc
64a Provisional decision representation from Camelot: Proposed Remedies
65 Response from Payzone
65a Letter from Nabarro LLP to the Commission, 2 July 2010
66 Response from Mr Vijay Oza
67 Response from Mr John Mills
68 Response from Fuel Poverty Advisory Group*
69 Response from Mr Martin Whiteside**
70 Response from S Boulding, Green Party**
71 Response from Tim Glover, Ipswich Green Party**
72 Response from Euan McPhee, Green Party Cambourne and Redruth**
73 Response from Dilys Cluer, Green Party Scarborough and Whitby**
74 Response from Arjuna Krishna-Das, Green Party Hertsmere**
75 Response from Dave Arthur, Green Party Chatham and Aylesford**
76 Response from Jacqui Morrish, Green Party Ludlow**
77 Response from Consumer Focus**
78 Response from Chris Took, Ashford Liberal Democrats**
79 Response from Owen Paterson MP**

*Added to this page Monday 2 August 2010

**Added to this page Tuesday 3 August 2010. These responses were received after the original consultation closing date.

Update: 16 July 2010
We have reached a provisional decision not to give consent to the proposal as there is a significant risk of it breaching EU/Competition law. A full explanation of the reason for our decision is set out in our Statement of Reasons which is available to download from the left-hand side of this page. In order to be fair to all parties we are giving the opportunity for them to make any final representations they wish to on our provisional decision by 3 September 2010.

Update: 13 July 2010
The Commission is mindful of the fact that its decision in respect of Camelot’s proposal to provide Commercial Services might constitute inside information in relation to listed securities and also recognises the broader UK market abuse and insider dealing regimes.

Insofar as the Commission takes the view that it is practical to do so, its current intention is that its decision will be publicly announced through a Regulatory Information Services provider at 7am on Friday 16 July 2010, prior to the opening of the London securities market.

Should there be any change to the arrangements set out above, the Commission will endeavour to communicate any revised arrangements as soon as is practicable.

Update: 1 June 2010
The Commission presently expects that it will be in a position to make and publish its decision on Camelots commercial services proposals before the end of July.

Update: 17 May 2010
Following a request from Camelot Group plc, the Commission has granted consent, under Condition 6.3 of the Third National Lottery Licence, to run a series of technical tests in relation to Camelot’s proposed Commercial Services infrastructure. In the interests of transparency, the Commission is publishing details of this consent. Our statement is available to download from the left-hand side of this page.

Update: 12 April 2010
The Co-operative Bank and Camelot Group plc have asked the Commission to the draw the following clarification to the attention of consultees: Camelot Commercial Services Overview – The Co-operative Bank clarification.

Update: 8 April 2010
Subsequent to the production of the Commercial Services Overview document dated 15 February 2010, the National Lottery Commission has received certain additional information from Camelot which the Commission believes it is appropriate to share with consultees.

This information comprises:

  • An update note for consultees – this contains information regarding the costs to be covered by projected revenue arising from individual contracts with service providers and clarifies/updates the position in respect of revenues and costs for each individual service line.
  • Updated graphs – this contains slightly revised versions of the graphs on page 7 of the Camelot Commercial Services Paper, which reflect certain updates to Camelot’s cost and revenue projections.

Camelot Commercial Services Paper – Post Office clarification 8 April 2010.
In these circumstances, the Commission considers it appropriate to extend the closing date for receipt of responses to the consultation by 14 days, to 5pm on Monday 26 April 2010.

Update: 15 March 2010
The Commission has published a document which explains the approach that we are taking in our assessment of Camelot’s proposals. You can download this document from the left hand-side of this page.

Update: 24 February 2010
Camelot has asked the Commission to provide to consultees a note of clarification to their paper which was attached to the Commission’s consultation document. You can download the clarification from the left hand side of this page.

Related downloads