OFT fines RBS for breaching anti-competition rules

The Office of Fair Trading has fined RBS £28.59m for breaching anti-competition rules by disclosing its pricing information to Barclays.

An OFT investigation found that the two banks had engaged in anti-competitive practices between October 2007 and the following spring, in relation to the pricing of loan products to large professional services firms.

The disclosures were made through a number of contacts, typically in conversations on the fringes of industry events and on the telephone.

Barclays brought the matter to the OFT’s attention and under the OFT’s leniency policy has not been fined.

Ali Nikpay, OFT senior director of cartels and criminal enforcement, said: “The disclosure of confidential future pricing information to competitors is unlawful.

“This decision sends out a strong message that such practices, even where they arise in the context of informal contacts between competitors, can result in substantial penalties for the companies involved.

“It is therefore important that companies take steps to ensure an effective compliance culture that is understood by individuals throughout their organisation.”