Friday, 29 July 2011

UK: OFT provisionally decides to refer audit market to Competition Commission

Earlier this year the Office of Fair Trading provisionally decided - see here - that there were competition problems in the audit market (e.g., features of the market that restrict, distort or prevent competition) which met the statutory test for a referral to the Competition Commission under Section 131 of the Enterprise Act (2002). At the time the OFT stated that it had not made a final decision whether to make such a referral because it needed to decide whether there was a reasonable chance that there would be appropriate remedies available to the Commission. The OFT has today stated that its provisional decision is that a referral to the Commission should be made - see here - and has published a consultation paper seeking views: see here (pdf). Further background information is available here.

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