Commons Sense

House of Commons · Ministers' Questions

Anti-competitive Behaviour: Small Businesses

Tuesday 14 September 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • John Penrose asked about the effectiveness of access to justice for small companies affected by anti-competitive behaviour that are ineligible for certain procedures.
  • The Secretary of State stated that the Government are consulting on reforms to competition policy to address anti-competitive behaviour more effectively.
  • The Secretary of State does not think that creating a further tier of specialist courts is the way forward, but there is much that can be done with colleagues in the Department for Business, Energy and Industrial Strategy.

Topics (select to filter)

Questions & Answers

Context

The Competition Appeal Tribunal fast track procedure and the Competition and Markets Authority's case-taking authority are not available to certain small companies.

Question

If he will make an assessment of the effectiveness of access to justice for small companies affected by anti-competitive behaviour that are ineligible (a) for the Competition Appeal Tribunal fast track procedure and (b) to have their cases taken up by the Competition and Markets Authority.

Answer from Robert Buckland

The Government are currently consulting on a range of reforms to competition and policy in order to more effectively and swiftly address anti-competitive behaviour. The consultation includes many of the recommendations that my hon Friend made in his excellent report. As part of it, we welcome suggestions from small businesses about how the system can be improved.

Partly answered

Not addressed: Specific assessment requested was not provided

How: Consulting On Reforms

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Context

Anti-competitive behaviour among small firms has negative impacts on competition, productivity, and consumer choice.

Question

The Secretary of State understands that anti-competitive behaviour is just as likely among small firms as among big ones. The effects are terrible: fast-growing small firms that are future world beaters get throttled by slightly bigger incumbents, levelling up is slower and less likely because competition and productivity are much lower outside London, and residents are left with less choice and more vulnerability to rip-offs. Does he agree that the justice system plays a central role in tackling the problem and ensuring that small firms have some kind of redress? Will he therefore look closely at the proposal in my Government-commissioned report for a new tier of local county competition courts?

Answer from Robert Buckland

I will be as brief as I can, Mr Speaker. We have read my hon Friend's paper with great interest. With respect, I do not think that the way forward is to create a further tier of specialist courts. However, there is much that can be done with colleagues in the Department for Business, Energy and Industrial Strategy to make sure that the overall structure of the competition mechanism is reformed and improved. His point about access to justice is absolutely right: it should apply to small and medium-sized enterprises as much as to individuals.

Partly answered

Not addressed: Proposal for local county competition courts was not accepted or promised action

How: Not Creating A Further Tier Of Specialist Courts, Reforming And Improving The Overall Structure

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