Thursday 4 December 2008

 

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Michael Henderson

Michael Henderson suggests


Gordon is right about one thing

Guess what? Gordon has done something right

Wednesday, 5th December 2007

He is spot on about anti-competitive practice in business

But now the Prime Minister has to decide whether to take his pro-competition campaign further. The resources of the enforcement agency, the Office of Fair Trading, are so limited that it can bring only about 20 important cases in any year. So it is relying on businesses and consumers injured by cartels to bring their own actions to recover from the cartelists their ill-gotten gains. Some of these private actions would follow on to cases already brought by the regulators; others would be new cases, overlooked by the regulators or beyond those agencies’ means.

But the cost of these actions, and the way the law is stacked against potential litigants, deters such suits for redress. Although 45 of the 202 companies surveyed by the OFT thought they had been harmed by anti-competitive actions, only five felt able to bring an action. Even more important, UK consumers have never recovered damages from the numerous cartels operating at the retail level. So it was good news when the Treasury’s 2006 Pre-Budget Report declared the government’s intention to eliminate barriers to redress for parties injured by anti-competitive behaviour.

There the matter stands. More precisely, there it sits — on the desks of Chancellor Alistair Darling, Secretary of State for Business John Hutton, and Baroness Ashton, Leader of the House of Lords. And in the Prime Minister’s in-box. There are, of course, valid reasons for hesitation — to make certain that the proper balance is drawn between making life more unpleasant for cartelists and overburdening the court system. But such issues cannot be resolved by inaction, which favours only the law-breakers.

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jaytt

December 7th, 2007 1:25am

We have been here before - and such trials have always foundered on the rocks of rules of evidence. The HRA will not make it any easier to bring a case. There will be limitless appeals, m'learned friends will do very well thanks, and the taxpayer will be the loser.

Frank Leader

December 8th, 2007 7:10am

I suppose that he has to be right sometimes, it's the luck of the draw.


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