Ref: 05/00
Date: 7 February 2000

Oftel today published guidance on how the Competition Act 1998 will be applied in the telecoms sector.

The guideline ‘The Application of the Competition Act in the Telecommunications Sector’ is published jointly by Oftel and the Office of Fair Trading (OFT). The Director General of Telecommunications will apply and enforce the Competition Act concurrently with the Director General of Fair Trading.

On 1 March 2000, the Competition Act will introduce two new prohibitions: a prohibition against anti-competitive agreements and a prohibition against abuses of a dominant market position.

The Act provides Oftel with much sharper teeth including greater powers of investigation and the power to impose a financial penalty of up to 10% of UK turnover on a company which has intentionally or negligently infringed either of the Act’s prohibitions.

For Oftel, the Competition Act is a case of ‘evolution not revolution’. The Act is modelled on EC law as was the Fair Trading Condition, which has been included in the licences of all major telecoms operators since 1997. Oftel therefore already has considerable experience of investigating allegations of anti-competitive behaviour.

David Edmonds, Director General of Telecommunications said today:

"I welcome the extra powers that the Competition Act brings. Preventing anti–competitive practices is a key part of Oftel’s strategy to protect consumers wherever possible through effective competition."

Notes for Editors

1. The Competition Act guideline The Application of the Competition Act in the Telecommunications Sector is available on Oftel’s website and on the OFT’s website at www.oft.gov.uk.

2. Printed versions of the guideline will soon be available from Oftel’s Research and Intelligence Unit on 0171 634 8761 and from the OFT, PO Box 366, Hayes, UB3 1XB (tel: 0870 606 0321).

3. The guideline has been prepared and published in conjunction with the Director General of Fair Trading (DGFT) and is part of the series of guidelines published concurrently by the DGFT and the sector regulators.

4.    General press enquiries about the Competition Act 1998 should be directed to the OFT Press Office on 0171-211 8898/8899/8900. Non-media enquiries about the Act should be directed to the Competition Act Enquiry line on 0171-211 8989.

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