OFT consults on guidance for handling Competition Act 1998 investigations

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91/10 20 August 2010

The OFT is consulting on draft guidance which sets out in detail how it conducts investigations into potential breaches of competition law.

The aim of the guidance is to increase transparency about how the OFT handles all stages of Competition Act investigations, from the opening of a case through to the final outcome. Giving businesses and their advisers better clarity about its processes should also help the OFT to deliver investigations more quickly and efficiently.

In particular, the guidance gives clear information on how the OFT conducts its prioritisation assessment in taking cases forward, and explains its internal governance in scrutinising investigations.

The draft guidance also proposes new initiatives aimed at encouraging the submission of good quality complaints about potential breaches of competition law, including:

offering informal discussions with potential complainants before they submit a substantiated complaint, similar to the OFT's approach in Merger cases and
a commitment to reach a decision on whether to formally open a case within four months of receiving a substantiated complaint - however, this depends on the timely co-operation of the complainant, and amount and quality of information.

Cavendish Elithorn, OFT Senior Director of Policy, said:

'By being more open about internal processes, we intend to give businesses and others interested in our work more clarity about investigations into anti-competitive practices, which in turn will help us to improve the delivery of our cases.

'By offering informal discussions on potential complaints and consistently faster decisions about whether to open an investigation, we hope to encourage and enable firms to come to us with legitimate, well argued cases.'

The consultation will run until 12 November 2010. If you would like to participate please send your response by post to:

Samina Khan
Competition Policy
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4Y 8JX

or email samina.khan@oft.gsi.gov.uk

NOTES

The guidance provides information on the complete process for an investigation: the sources of an investigation, what the OFT does when it receives a complaint, opening a formal investigation, the OFT's formal powers including entering and searching premises, limits on the OFT's powers of investigation, taking urgent action to prevent serious damage or to protect the public interest, analysing and testing the evidence, investigation outcomes, issuing provisional findings - the Statement of Objections, right to reply, the final decision, complaints about our investigation handling, and right of appeal. Read more and download the consultation document.
The OFT is responsible for applying the Chapter I and Chapter II prohibitions of the Competition Act 1998, which prohibit agreements preventing, restricting or distorting competition in the UK as well as certain anti-competitive conduct by undertakings holding a dominant position. The OFT also has powers to apply and enforce Articles 101 and 102 of the Treaty on the Functioning of the European Union, which are similar to the Chapter I and II prohibitions, but which apply to agreements or conduct which may affect trade between Member States of the European Union.
Download the OFT's transparency guidelines.

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