Advisory on proposed initiative relating to operation of key infrastructure

CCCS was asked to advise on a proposed initiative that involved a consortium of competitors taking on the role of operating an infrastructure that other industry players would need to access, and where the consortium may subcontract the operations of aspects of the infrastructure to various service providers. CCCS advised the government agency that there was potential for distortion of competition under the proposal, if the consortium would be involved in the selection of outsourced service providers to set selection criteria, as the businesses in the consortium are themselves potential outsourced service providers and so may compete to bid for the provision of such outsourced services. There was also risk that competitive advantage may be given to the businesses in the consortium over their competitors, should they be provided with the right to match offers by their competitors. CCCS also highlighted the risk of anticompetitive conduct arising from the businesses in the consortium having access to their competitors’ commercially sensitive information.