Competition Whistleblowing on the Increase

The penalties for engaging in anti-competitive behaviour are very substantial but, recognising that cartel (price-fixing) behaviour is difficult to detect, the Office of Fair Trading (OFT) has a ‘leniency programme’, which operates to give lenient treatment to cartel members who ‘blow the whistle’ on their cartels.

The whistleblower whose leniency application is accepted is given immunity from prosecution and fines in return for supplying the OFT with the evidence it needs to prosecute other cartel members.

In 2010, 25 leniency applications were received by the OFT and every one was accepted: this compares with 13 acceptances from 15 applications in 2009.

Engaging in anti-competitive behaviour is unlawful and businesses that participate in cartels face the possibility that fellow cartel members may blow the whistle on them, leaving them facing possible prosecution and a hefty fine.