Merger clearance decisions tainted by confirmation
bias and losing the input of competition specialists are
lawyers main fears following the proposed introduction of
a single UK competition authority.
If the government follows through on its recent
announcement, the Competition Commission (CC) and competition
functions of the Office of Fair Trading (OFT) will be merged,
removing the UKs two-tier system of merger clearance.
Having one regulator would bring it in line with other
jurisdictions - including the EU.
Under the UK model, the OFT passes on more difficult cases
to the CC which performs its own investigations which
often overlap with those completed by the OFT.
Removing this duplication is touted to streamline and
speed-up M&A timetables. But lawyers are worried it may