OFFICE OF FAIR
TRADING News Release (63/07) issued by The Government News Network
on 18 April 2007
The OFT is today
publishing a discussion paper and announcing informal consultation
on facilitating private actions in order to optimise the
effectiveness of competition law in the UK, and to make redress
for consumers and business more accessible.
Strong competition regimes are essential for open, dynamic
markets. They drive productivity and innovation and ensure the
efficient allocation of resources, and are good for consumers and
business. Infringements of competition law cause significant harm
to both consumers and businesses. Recent experience shows that
harm to consumers may run into tens of millions of pounds in any
given case. However, up until now consumers have recovered
virtually no compensation. Businesses also find it difficult to
recover losses and to remedy the competitive disadvantage they may
have suffered from infringements of competition law.
The discussion paper sets out a number of principles and
proposals aimed at ensuring effective redress and greater
compliance with competition law. These include the following:
* consumers and businesses suffering losses as a result of
breaches of competition law should be able to recover
compensation, both as claims for damages on a standalone basis as
well as in follow-on actions brought after public enforcement. To
this end, representative actions should be more broadly available, and
* processes and systems should be available to encourage
effective ways of resolving private actions, and to encourage
settlement of cases without going to court or trial wherever possible.
Subject to the outcome of the consultation, the OFT envisages
making recommendations to the Government to improve the
effectiveness of redress for those who have been harmed by
breaches of competition law. The OFT will also respond to the
European Commission's forthcoming White Paper on damages
actions for breach of the EC anti-trust rules. Philip Collins, OFT
Chairman, said:
'A more effective private actions system would promote a
greater culture of compliance with competition law and ensure that
public enforcement and private actions work together to the best
effect for business and consumers.'
The consultation period will last for eight weeks and end on 13
June 2007. The discussion paper can be found at http://www.oft.gov.uk
NOTES
1. In December 2005, the European Commission published a Green
Paper, Damages actions for breach of the EC antitrust rules and an
accompanying Commission Staff Working Paper (the 'Green
Paper'). The Government and the OFT both submitted responses
to the consultation.
In HM Treasury's Pre-Budget Report, the Government signalled
its intention to work with the competition authorities and the
European Commission to identify and eliminate any barriers to
redress for parties injured by anti-competitive behaviour. In the
Budget itself, the Government indicated that the OFT intended to
consult on this discussion paper and welcomed the progress that
the OFT had made.
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 oft@ecgroup.uk.com