Govt plans to create super competition watchdog

The government is proposing to merge the Office of Fair Trading (OFT) with the Competition Commission to create a single Competition and Markets Authority (CMA).

Ministers want a single CMA to be a stronger advocate for pro-competition policy across government, including in the delivery of public services, today's consultation paper says.

"The government considers the proposed single CMA should have a primary competition focus," it says.

However many IFA firms are likley to escape some aspects of the new rules under an exemption to cut the burden on small business, which would exclude them from the merger control regime.

A proposed single CMA could report on specified public interest considerations in market investigations if asked to do so by Ministers.

The power would mirror the Competition Commission's current remit for merger investigations.

Ministers want the super competition watchdog to increasing business confidence through faster decision making, and more predictable  competition processes and decisions.

It also plans to reform anti-trust provisions to increase deterrence of anti-competitive and abusive behaviour.

Consumers could expect shorter end-to-end studies and investigations into markets where lack of competition is giving consumers a "bad deal".

The move to merge the two bodies is also a cost-saving measure to ensure the flexible allocation of scarce public resource to competition issues as they emerge.

The consultation will run for 12 weeks, closing on 13 June 2011.