The Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2026

Published: Mon 12th Oct 26

Added the continuity of telecommunications supply as a public interest ground for government intervention in UK business mergers.

This Order amends the Enterprise Act 2002 to allow the Secretary of State to intervene in mergers that may affect the continuity of telecommunications services in the United Kingdom.

It establishes a new public interest consideration focused on preventing disruption to the economy, society, public services, and critical national infrastructure.

The Order also grants the Secretary of State specific powers to issue enforcement orders requiring companies to take, or refrain from, particular actions to ensure service continuity during a merger.

Arguments For

The order states that maintaining the continuity of telecommunications services is necessary to prevent disruption to the UK economy and society.
Proponents argue that specific protections are required for public services and critical national infrastructure that rely on stable telecommunications.
The document indicates that government intervention may be necessary to protect vulnerable customers from service interruptions resulting from corporate mergers.
The instrument provides the Secretary of State with specific enforcement powers to ensure service continuity is addressed during the merger clearance process.

Arguments Against

Legal observers may question the broad discretion granted to the Secretary of State to determine what provisions are "appropriate" under the new Schedule 8 powers.
Businesses in the telecommunications sector may face increased regulatory uncertainty and potential delays in merger and acquisition activity.
Critics might argue that the term "customers who are or may be vulnerable" is not strictly defined, potentially leading to inconsistent application of the new rules.
Industry groups may express concern regarding the additional compliance costs associated with enforcement orders issued under these new public interest grounds.

Citation, commencement, interpretation and extent

-(1) This Order may be cited as the Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2026 and comes into force on 13th October 2026.

(2) In this Order, 'the Act' means the Enterprise Act 2002.
(3) This Order extends to England and Wales, Scotland and Northern Ireland.

This section establishes the official name of the Order and sets its commencement date as 13 October 2026.

It defines 'the Act' as the Enterprise Act 2002 for the purposes of this document.

The Order applies throughout the entire United Kingdom, covering England, Wales, Scotland, and Northern Ireland.

Amendment to section 58 of the Enterprise Act 2002

-(1) Section 58 of the Act (specified considerations)( b ) is amended as follows.

(2) After subsection (2E) insert-

'(2EA) The need to maintain in the United Kingdom the continuity of the supply of telecommunications services for the purposes of preventing disruption to the economy and society of the United Kingdom, including, in particular, disruption to-
(a) public services;
(b) critical national infrastructure;
(c) supply to customers who are or may be vulnerable,

is specified in this section.'

This section adds a new public interest ground to the list of considerations the Secretary of State may use to intervene in mergers.

It specifically identifies the continuity of telecommunications services as a protected interest.

This protection is intended to prevent disruptions to the economy, public services, critical infrastructure, and vulnerable customers.

Amendment of Schedule 8 to the Enterprise Act 2002

In Schedule 8 to the Act( a ) (provision that may be contained in certain enforcement orders), after paragraph 20BA insert-

'Maintaining the continuity of the supply of telecommunications services

20BB. -(1) This paragraph applies for the purposes of a relevant order under paragraph 5, 10 or 11 of Schedule 7 (enforcement orders in cases relating to maintaining the continuity of the supply of telecommunications services etc) but not for any other purposes of this Part or Part 4 or any other enactment.

(2) The order may make such provision as the person making the order considers to be appropriate in order to maintain in the United Kingdom the continuity of the supply of telecommunications services for the purposes specified in section 58(2EA).

(3) Such provision may, in particular, include provision requiring a person to do, or not to do, particular things.

(4) This paragraph is without prejudice to the operation of the other paragraphs of this Schedule in relation to the order.

(5) In this paragraph 'relevant order' means an order-

(a) which is to be made following the giving of an intervention notice or special intervention notice which mentions the consideration specified in section 58(2EA); and
(b) to which the consideration is still relevant.'

This section empowers the Secretary of State to include specific requirements in enforcement orders related to telecommunications mergers.

It allows the government to mandate that a person or company perform certain actions, or stop certain activities, to ensure services continue without interruption.

These powers apply only when a merger intervention notice has been issued specifically citing telecommunications continuity as a concern.

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