Plans for new single competition authority unveiled

The coalition government has announced proposals for a new, single authority to rule on market dominance issues across UK industry.

Under plans being drawn up by Ed Davey, the business minister, the new Competition and Markets Authority would be created via a merger of the Office of Fair Trading (OFT) and the Competition Commission.

One of the key proposals for the new body includes "an extended supercomplaints process to spotlight market features that harm small companies".

This could mean allowing groups which represent small and medium-sized businesses being able to lodge a super-complaint with the new body.

The consultation document states: "Tackling barriers to entry and conduct by large firms which have the effect of squeezing out small firms is critical to the promotion of competition and growth... it would be possible to extend the super-complaint system to SME bodies thus providing a speedy mechanism to address features in a market(s) that have an impact on competition that significantly harms the ability of SMEs to compete."

Under the old rules only a certain number of organisations were able to launch a 'supercomplaint', including the Campaign For Real Ale's recent bid to prove the beer tie was anti-competitive.

Davey said: "The UK competition regime is regarded as one of the best in the world. But it can and should be even better. Competition is the cornerstone of growth, innovation and consumer choice. That means we also need to have a strong regime to promote effective competition in markets.

"This is an excellent opportunity to strengthen and streamline the competition regime to deliver better outcomes for consumers and increase business confidence and certainty.

"At the same time we are taking advantage of this chance of reforming it to assist small and medium enterprises. I hope that everyone interested in this consultation will take the time to respond to our proposals."

Other proposals include introducing an exemption for small mergers through the merger control regime and reducing barriers to entry by making it for the new authority to tackle anti-competitive mergers.