OFT takes next procedural step in loan pricing case

[Legal Beagles]

The OFT has issued a Statement of Objections to Royal Bank of Scotland and Barclays in its investigation into the disclosure of confidential and commercially sensitive future pricing information.

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Issuing the Statement of Objections is a necessary procedural step in the case.
In March, RBS agreed to pay a reduced £28.59 million fine after admitting breaches of competition law and agreeing to co-operate with the OFT. See press release 34-10.
The matter was brought to the OFT's attention by Barclays under the OFT's leniency policy, where a company which is the first to report its participation in cartel conduct may qualify for immunity from penalties. Provided it continues to cooperate, Barclays will be immune from any penalty imposed in this case.
Despite the early resolution of the case, the Competition Act requires the OFT to issue its proposed findings in a Statement of Objections to parties, and invite representations from them, before it can issue a final decision and impose a penalty.
NOTES

1. The Competition Act 1998 prohibits agreements, practices and conduct that may have a damaging effect on competition in the UK. The Chapter I prohibition covers anti-competitive agreements and concerted practices that have the object or effect of preventing, restricting or distorting competition in the UK (or a part thereof) and which may affect trade in the UK (or a part thereof). Its European counterpart, Article 101 of the Treaty on the Functioning of the European Union, covers equivalent agreements or practices which affect trade between EU Member States.
2. A Statement of Objections gives notice of a proposed infringement decision under the Competition Act 1998 to the parties involved. It sets out the facts on which the OFT relies, the objections raised by the OFT, the action it proposes to take and the reasons for it. This document is not a decision document and the parties have the opportunity to make written and oral representations in response to the alleged case set out by the OFT. Such representations (if any) will be considered by the OFT before any final decision is made.
3. The Statement of Objections will not be published. In accordance with the OFT's guidance on Involving third parties in Competition Act investigations (pdf 289 kb), any person who wishes to comment on the OFT's proposed findings, and who is in a position materially to assist the OFT in testing its factual, legal or economic arguments, may request a non-confidential version of the statement of objections by contacting the OFT no later than 27 October 2010.

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[Amethyst]

Re: OFT takes next procedural step in loan pricing case

Still love this story and the way Barclays screwed over RBS