UK sets out proposals for single competition body

LONDON, March 16 (Reuters) - Britain has set out proposals to create a single competition authority, saying it would reduce delay and end duplication for business, and introduce an exemption for small deals from the merger control regime.

The 10-month-old coalition Conservative-Liberal Democrat government, planning to merge the competition functions of the Office of Fair Trading with the Competition Commission, opened a three-month consultation period on Wednesday.

Business secretary Vince Cable said consultation on the competition framework was a fundamental part of the government's growth agenda. "The UK's competition regime is internationally regarded as one of the best in the world. Nevertheless, I believe it can and should be even better."

Cable said the proposals were designed to increase business confidence in the predictability of competition decisions, help tackle barriers to entry, and give small business a better means of voicing concerns on certain market matters.

Britain's highest-profile recent competition case, involving Rupert Murdoch's News Corp (NWSA.O), has focused on influence over Britain's media. News Corp took a stride towards securing its buyout of satellite broadcaster BSkyB (BSY.L) this month when the government accepted its proposals to ease competition concerns [ID: nLDE72205C]

Legal firm Linklaters said the government should be careful not to undermine a highly regarded system or increase costs.

"Merger fees have risen to unprecedented levels -- almost 100,000 pounds ($161,000) for 'large' mergers and business would not wish to see these increase," Linklaters competition partner Eamonn Doran said.

The concentration of competition functions in one agency is part of government plans, set out in October, to abolish, merge or reform 481 semi-independent state agencies to help reduce Britain's record peacetime budget deficit.

The government said it was launching a separate consultation on consumer protection.

Information on the competition consultation can be found at: here

(Reporting by Adrian Croft; Editing by Dan Lalor) ($1 = 0.6215 pound)