UK Competition Structure - PowerPoint PPT Presentation

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UK Competition Structure

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An interactive presentation showing the structure of UK competition authorities. Just click on the relevant authority for a description of their role. For explanations of UK competition policy and alternatives see other presentations. – PowerPoint PPT presentation

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Title: UK Competition Structure


1
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
Industry Watchdogs
2
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
Industry Watchdogs
Click on an organisation to find out about its
role
3
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
Industry Watchdogs
The DTI oversees the implementation of
competition policy within the UK. It is in
charge of each of the competition bodies.
4
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
The CC performs in depth investigations into
alleged anticompetitive practice. It only
investigates matters that have been referred to
it by the OFT It has power to require certain
changes or may pass recommendations back to the
OFT
Industry Watchdogs
5
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
Industry Watchdogs
The CAT hears appeals about OFT or CC rulings It
has the power to alter rulings or fines
6
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
Regulators can be imposed on an industry by
OFT/CC where either abuses have taken place or
there is significant potential for them to do
so. Powers range from solely monitoring to the
ability to set maximum price rises, impose
efficiency targets and fines Examples include
OFGEN and OFWAT
Industry Watchdogs
7
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
The OFT is the principle body tasked with
overseeing the implementation of UK competition
law. It investigates markets where there is
concern over the openness of competition as well
as considering allegations made to it It has
powers to impose fines or other sanctions
More
Industry Watchdogs
8
  • To use powers under fair trading act 73 and
    enterprise act 2000 to ensure competition in
    markets.
  • Receives complaints from the public
  • Investigates anti-competitive practice.
  • It may pass on some large investigations to the
    CC
  • Rules on the legality of mergers where
  • The company being bought has a turnover of gt 70m
  • The new company could have gt 25 market share

Role
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
  • There are a wide range of sanctions available to
    the OFT if it finds companies guilty of abusing
    monopoly power or restrictive practice. They
    include
  • Imposing regulators on the industry e.g. OFCOM
  • Requiring changes in industry practice
  • Refusing permission for mergers to take place
  • Breaking up large companies e.g.
  • Fining companies up to 10 of global annual
    turnover e.g. Imperial Tobacco

Sacntions
The OFT is the principle body tasked with
overseeing the implementation of UK competition
law. It investigates markets where there is
concern over the openness of competition as well
as considering allegations made to it It has
powers to impose fines or other sanctions
More
Industry Watchdogs
9
DTI Department of Trade and Industry
OFT Office of Fair Trading
CC Competition Commission
CAT Competition Appeals Tribunal
The OFT is the principle body tasked with
overseeing the implementation of UK competition
law. It investigates markets where there is
concern over the openness of competition as well
as considering allegations made to it It has
powers to impose fines or other sanctions
More
Industry Watchdogs
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