1. Why has the UK set up independent competition authorities?
Robert Foster
Chief Executive
Competition Commission
Wednesday 14th April 2004

2. Why do we have a competition policy?
Competition policy covers cartels, mergers, monopolies
Competition policy benefits consumers through lower prices, higher quality products and more innovation
Competition policies developed in USA over 100 years and in EU 50 years
HMG believes innovation / entrepreneurialism / skills /competition are driver of productivity

3. What are changes in competition policy in UK
New Enterprise Act makes OFT / CC independent of Ministers
No longer public interest but economic test (substantial lessening of competition)
OFT can fine business involved in cartels up to 10% revenue for 3 years
Criminal sanctions
CC determinative in allowing/blocking mergers

4. Why Have National Authorities in Global World
Why not just one authority for EU (ie a monopoly!)
EU law covers major mergers with impact in number of member states
National law is subject to EU law

5. Who takes decisions and types of cases chat competition authorities handle
OFT (600 people) and CC(200)
OFT looks at mergers per year; CC then at dozen in detail
Phase 1 / 2 allows split prosecution/investigation roles to allow fair hearing
Safeways
Carlton Granada

6. Who are deciosion takers accountable to?
Competition Appeal Tribunal
Court of Appeal
Select Committees
Increasingly media

7. Is competition policy effective?
Evaluation – real effect deterrence
Evaluation of mergers by universities
Will public accept concept of expert body doing work formerly responsibility of Ministers?
Need to be very transparent