Anti-competitive moves lead to higher prices, the OFT says

One in four small businesses has been the victim of anti-competitive behaviour, OFT research suggests.

In return for admitting to taking part in such practices, the OFT is offering partial or total immunity from fines.

Anti-competitive practices can lead to a fine of 10% of turnover, or a prison sentence in the most serious cases.

The OFT campaign, called 'Come Clean on Cartels', is aimed in particular at small and medium sized enterprises (SMEs).

"SMEs form the dominant part of the economy and we want to ensure that they operate in competitive markets," said OFT chairman Philip Collins.

"It is consumers who pay the price for businesses colluding in cartels in the form of higher prices, less choice or lower levels of innovation."

Whistleblowers

An OFT survey found that 40% of SME owners thought that smaller firms would be more willing to report any anti-competitive practices they were involved in if they knew they could have any fine reduced or wiped out.

Penny Boyes, executive director at the OFT, told the BBC that it was in the firms' own interest to admit to any wrongdoing.

"The best thing to do is to come straight to us, they can then have 100% leniency if they cooperate fully with us in the investigation," she said.

Ms Boyes added that the majority of cartel investigations have "stemmed from companies coming under the leniency programme or whistleblowers - individuals within companies".

The OFT said that so far it had received 88 approaches under its leniency programme.