16 May 2003
Watchdogs at the Office of Fair Trading have warned that their investigation into alleged anti-competition activities at the Environment Agency will be a complex affair.
The OFT launched its inquiry following a number of complaints that the EA had hiked up the price of environmental information used in the sale of properties.
It is only the second time that the watchdog has investigated a government agency for a possible breach of anti-competition laws - Companies House was investigated last year.
'We have reasonable grounds to suspect a breach of competition laws, but that does not mean we will conclude that laws have been breached,' an OFT spokesman told Public Finance.
The OFT were alerted to a potential breach of the law by a property search company, Sitescope, which claimed the EA was abusing its position as one of the few owners of environmental information used to determine, for example, flood risks to housing developments.
The EA denies it has breached any laws, claiming it merely sets prices in order to recoup cash for services undertaken at public expense.
PFmay2003
