Embargoed until 0001 hours on Wednesday 1 March 2000

10/00
29 February 2000

Telecoms consumers now have greater protection through the new Competition Act that comes into force today.

The Act introduces two new prohibitions: a prohibition against anti-competitive agreements and a prohibition against abuses of a dominant market position.

The Act provides Oftel with greater powers of investigation, including the power to carry out ‘unannounced visits’, 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.

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.

"The introduction of the Act means that Oftel will have even more powers to investigate suspected infringements and deal with them quickly and efficiently."

The Director General of Telecommunications will apply and enforce the Competition Act concurrently with the Director General of Fair Trading.

Notes to Editors

1. The Competition Act is based on Articles 81 and 82 of the EC Treaty. It introduces into United Kingdom competition law prohibitions of anti-competitive agreements, decisions by associations of undertakings and concerted practices and of the abuse of a dominant position in a market, with the possibility of imposing penalties in the form of civil fines for breach of the prohibitions.

2. Guidelines on the application of the Competition Act in the telecommunications sector are issued by the Director General of Telecommunications in conjunction with the Director General of Fair Trading. The Guidelines are intended to set out the general principles that the Director General of Telecommunications and the Director General of Fair Trading expect to apply when exercising powers under the Competition Act in the telecommunications sector. It is available from Oftel’s web site and in printed form from the Office of Fair Trading on 0870 6060321.

3. General press enquiries about the Competition Act 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.

4. The Office of Fair Trading and the regulators have also issued a number of Guidelines on the Competition Act. They are available on the OFT web site: http://www.oft.gov.uk

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