9

THE IMPACT OF THE CHANGES

	Building a world-class competition regime is central to the Government's economic agenda. The reforms set out in this White Paper will further the Government's principles for competition policy.
	Competition decisions will be taken by strong, pro-active and independent competition authorities.
	Our regime will root out all forms of anti-competitive behaviour.
	We will have a strong deterrent effect.
	Harmed parties will be able to get real redress.
	The Government and our competition authorities will work for greater international consistency and co-operation.
	Competition policy will have a high profile ­ because of its importance for economic performance.

9.1      Strong and effective competition policy is central to the Government's economic agenda. It is one of the primary means through which we will close the productivity gap with our major competitors.

9.2      Chapter 3 set out the principles which guide the Government in this area. Each of the reforms set out in this White Paper will further these principles.

9.3      Competition decisions will be taken by strong, pro-active and independent competition authorities: Our competition authorities will have greater independence ­ with decisions on mergers and complex monopoly cases taken by the OFT and the Competition Commission on the basis of sound economic analysis of the effects on competition. There will be new duties for the OFT to promote competition. All public appointments in this area will be reserved for those with expertise relevant to competition.

9.4      Our regime will root out all forms of anti-competitive behaviour: There will be a new role for the OFT, the Competition Commission and sector regulators to alert Government to anti-competitive regulations, and a commitment for Government to consider advice at the highest level, responding publicly within 90 days. The complex monopoly powers will be modernised ­ with a more flexible reference test, and better remedy-setting for complex monopolies. There will be more resources for the OFT and the Competition Commission allowing them to work more pro-actively to root out anti-competitive behaviour. Consumer groups will have a new power to bring super-complaints, helping the OFT to detect problems in consumer markets. The exclusions of vertical agreements and professional rules under the Competition Act will be repealed.

9.5      We will have a strong deterrent effect: There will be a new criminal offence for individuals who engage in hard-core cartels ­ carrying the possibility of a custodial sentence.

9.6      Harmed parties will be able to get real redress: The Competition Commission Appeal Tribunals will have a strengthened role ­ allowing them to hear claims for damages from third parties. There will be a new right of appeal against decisions of the OFT not to grant interim measures. The Government is developing proposals allowing consumer groups the power to bring actions for damages on behalf of consumers.

9.7      The Government and our competition authorities will work for greater international consistency and co-operation: The Government will ensure that the Competition Act remains in step with developments in Europe, such as changes resulting from the Commission's modernisation proposals. There will be new powers for our competition authorities to share information with foreign competition authorities ­ to ensure that international investigations can proceed smoothly.

9.8      Competition policy will have a high profile ­ because of its importance for economic performance: The OFT will have a new role to act as a champion of competition ­ ensuring that consumers and businesses understand the importance of competition policy. There will be separate mission statements setting out the respective roles of the OFT, the Competition Commission and Government ­ so that the public, businesses and Parliament can hold each organisation accountable. In addition, the increased possibility of third party actions will demonstrate the harm that those who engage in competition breaches can do, whilst the new criminal offence will demonstrate the penalties that they deserve.