The research, carried out by the OFT, found that one in three SMEs are aware of anti-competitive activities in their industries, but that only 22% would report price-fixing agreements between competitors.
Only 9% would report a larger competitor trying to push them out of the market by cutting its prices to below cost.
According to the OFT, many SMEs may be missing out on the benefits of fair and competitive markets, and it calls on the enterprises to work with the OFT to take action against companies who break competition law.
The survey also shows that more than half of businesses feel that the industry in which they operate could increase its competitiveness. More than a third of SMEs think that new companies have difficulty entering markets and 16% say they cannot compete freely and fairly for new contracts, and this figure is even higher for some industries, for example construction, at 21%.
'”Practices such as price-fixing and bid-rigging harm the competitiveness of our economy,” said Sir John Vickers, OFT Chairman. “SMEs have rights and obligations under competition law and can work more with the OFT to identify and stop anti-competitive behaviour. We must ensure that SMEs are informed about
Angelo Basu, a competition law specialist with Pinsent Masons, the law firm behind OUT-LAW.COM, welcomed the OFT's attempt to encourage more SMEs to assist its efforts to drive anti-competitive behaviour out of the market. But he says this is hampered by the OFT's recent tightening-up of the level of evidence that is needed to persuade it to start an investigation.
"The cost implications for SMEs of this should not be underestimated," he said, "in particular in relation to allegations of pricing below cost which are very difficult for SMEs to establish against larger and more financially-sophisticated businesses."
Basu continued: "This is a serious disincentive on SMEs pursuing complaints. Many SMEs may feel that they would rather take their chances with being a victim of a cartel or predatory pricing than risk sinking their limited resources into a complaint on which the OFT might not act.
