Postcomm consults on working arrangements with the OFT

Postcomm today published for consultation a draft Memorandum of Understanding (MoU) setting out how it proposes to work with the Office of Fair Trading (OFT) on issues affecting competition.
The OFT enforces the Competition Act 1998* which prohibits anti-competitive behaviour in the UK. Postcomm has a responsibility for enforcing Consignia’s licence, which, among other things, requires Consignia not to act anti-competitively. There is therefore a potential overlap between the roles of Postcomm and OFT in this area.
The proposed MoU, which was foreshadowed when Postcomm awarded Consignia its licence in April 2001, is intended to clarify the respective roles of the two offices when investigating cases of anti-competitive behaviour, to prevent duplication of effort. Complainants would be able to complain to either or both bodies.
* Technically, at present the Director General of Fair Trading (DGFT) enforces the Competition Act 1998. But by the time the MoU becomes effective the Enterprise Bill will have established the OFT on a statutory basis as a body corporate with the result the office of the DGFT will be abolished and his functions transferred to the OFT.