Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2020

Lord Moynihan Excerpts

Wednesday 15th July 2020 Lords Chamber

[Lord Moynihan (Con) [V]]

My Lords, the orders before the House are a considerable intervention to those engaged in or contemplating the acquisition of UK companies. In the context of the specification of additional Section 58 considerations, they seem measured, particularly in the context of Covid-19, and will command support—although it is regrettable that, following the 2018 White Paper, as noble Lords have said, they could not have been considered in the context of the NSI Bill.

However, having lowered the jurisdictional thresholds of the UK merger control regime from £70 million to £1 million in three specified sectors, we are now considering artificial intelligence to become a further sector. I put it to my noble friend the Minister that, despite the Explanatory Memorandum and the information published by government, this could cover all UK businesses involved in artificial intelligence, including providers of components or related services under the share of supply amendment order.

Many of your Lordships and leading lawyers, not least the first-rate team at Herbert Smith Freehills, would welcome the Government making detailed guidance available—quickly—so that sufficient clarity is available to companies either directly involved in artificial intelligence or where artificial intelligence comes within the scope of their business. The guidance needs clarification urgently to avoid unintended consequences away from national security. I look forward to my noble friend the Minister’s reply.