Are property sales and letting agents under scrutiny? Suzanne Rab & Andrew Francis say you can put your house on it
The Office of Fair Trading (OFT) is investigating a potential infringement under the Competition Act 1998, Ch I which is the UK domestic legislation applying to restrictive agreements, including cartels. Chapter I mirrors the EU competition law prohibition on restrictive agreements contained in Art 101 of the Treaty on the Functioning of the EU. Chapter I prohibits agreements, decisions and concerted practices between or among undertakings or associations of undertakings (including trade associations) which have as their object or effect the prevention, restriction or distortion of competition within the UK and which affect trade in the UK. The OFT may impose penalties of up to 10% of turnover on a company or association that is found to have violated a provision of UK or EU competition law, including Ch I. Individual directors may face disqualification from acting as a company director for up to 15 years.
The provision of property sales and letting services is generally fragmented and regarded as competitive. However,
