OFT Consults On New Guidelines On Penalties And Leniency

On 26 October, the OFT issued a consultation on proposed new guidance on penalties and leniency. The new guidance reflects the OFT's experience in applying the existing guidance, last revised in 2004. It is also intended to address the issues raised in the Construction bid-rigging appeals, reported in our May 2011 Bulletin. Highlights include:

• a higher maximum starting point (30% of relevant turnover in place of 10%), designed to provide more effective deterrence, and greater scope for reflecting the gravity of the infringement, as well as aligning OFT practice more closely with that of the European Commission and other national competition authorities. The OFT acknowledges that the change may result in higher penalties;