Investigative Bodies Merging

As part of the government’s "bonfire of the quangos" the Office of Fair Trading and the Competition Commission are to merge, providing a major overhaul of Britain’s competition regime.

The merger of the OFT and Competition Commission will give rise to a new authority that will be responsible for investigating mergers, cartels and other anti-competitive practices (such as abuses of a dominant position and restrictive agreements). At the same time it will also keep the role of independent market investigation and analysis.

Under the current regime the OFT works as a first-phase investigative body, reviewing mergers and markets, before referring them to the Competition Commission if second-phase investigation is needed. Both institutions have been applauded internationally for their transparency and thoroughness, and it is therefore hoped that the merger will not be an excuse to dispense with the two-tier system.

Geoff Kew

Published on 19/11/2010