Can the OFT Succeed in its Latest Attempt at Bringing Criminal Charges Against an Individual for Cartel Conduct?

February 18, 2014

(by Scott Summers) The Office of Fair Trading (OFT) has charged Peter Nigel Snee under section 188 of the Enterprise Act 2002. It is alleged that he ‘dishonestly agreed with others’ to fix prices, allocate markets and rig bids in the market for galvanised steel tanks for water storage, between 2004 and 2012. This is the UK’s first criminal cartel prosecution since the collapse of the British Airways trial back in 2010,[1] which left a number of unanswered questions about the ‘dishonesty’ element and the UK cartel offence in general. The Snee case will fall under the existing cartel offence. The Enterprise and Regulatory Reform Act 2013 will, from 1 April 2014, strip the ‘dishonesty’ element and introduce new carve-outs and defences to the offence. Read the rest of this entry »


Ofcom: A Credible Solution to Bias in Media Public Interest Mergers?

February 16, 2014

(by David Reader) On 4 February, the House of Lords Select Committee on Communications published its Report on Media Plurality proposing a number of changes to media ownership regulation in the UK. Among the most notable is the proposal to grant decision-making powers to the media regulator, Ofcom, in mergers raising potential media plurality concerns. At present, this role is performed by the Secretary of State but, as has been noted in a previous post by Andreas Stephan, the ability of politicians to undertake this role impartially has recently been called into question. In particular, the close contact between a NewsCorp lobbyist and a Special Adviser to (the then Culture Secretary) Jeremy Hunt during the NewsCorp/BSkyB assessment, as exposed by the Leveson Inquiry, highlights the sheer extent to which politicians can be subjected to undue influence in the media sector. Re-allocating the decision-making role to Ofcom could overcome this problem, but it could equally amount to substituting one problem for another. Read the rest of this entry »