Experts warn of added burden on businesses under OFT merger

BUSINESSES face being saddled with a greater regulatory burden under the UK government's proposals to merge Britain's competition authorities, experts are warning.

Talks will be held in Edinburgh this week to debate the impact of the tie-up between the Office of Fair Trading (OFT) and the Competition Commission, which will be replaced by one single body, the Competition and Markets Authority (CMA).

Ahead of the meeting between business leaders, lawyers, government officials and academics on Thursday, Peter Willis, partner and head of European Union and Competition at Dundas & Wilson, said the plans throw up serious operational changes for companies. He said one option set out by the government would increase the number of mandatory regulatory merger filings to the new organisation. Currently most merger filings to the OFT are not mandatory and as a result there are about 50 a year.

The Department for Business, Innovation and Skills (BIS) admits this would rise to about 1,190 filings annually to the CMA if a proposal to lower the referral threshold is approved so that target companies with a turnover of 5 million or more and suitors with a turnover of at least 10m would have to be referred.

"I can't imagine that low level of thresholds, which appear to be BIS's preferred option, would be welcomed by the business community," Willis said.