OFT will merge with Competition Commission

14 October 2010 | By Samuel Dale

The new body will be responsible for merger regulation, market investigations, cartel and antitrust cases, as well as a number of functions with respect to the regulated utilities.

It is designed to strengthen the competition regime, streamlining procedures, making it less burdensome and delivering cost savings.

A final decision will follow a full public consultation in the New Year.

The government will publish a consultation early next year with proposals to streamline and transfer the functions of Consumer Focus, and other consumer bodies, and transfer its functions to the Citizens Advice service.

Most consumer enforcement will pass to local authority trading standards.

Business secretary Vince Cable says: ”Consumers are represented by a bewildering array of public, private and voluntary bodies, which often duplicate efforts to inform, educate and advise consumers of their rights. Our aim is to create a simpler structure with a single competition authority and a stronger role for front-line consumer services.”

John Fingleton, chief executive of the OFT, says he welcomes the streamling and has advocated such a move for some time.

He says: “Today’s proposals raise important questions about how local and national enforcement of consumer law should best be structured to ensure markets work well for consumers.

“With a growing proportion of household goods and services purchased from national or global companies, and increasing online sales, the details will need to be carefully thought through in the light of the issues, risks and evidence.

“We will actively contribute to this debate in the planned consultation.”

If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat