Universities should face more scrutiny over competition, says OFT

The OFT published today 바카라사이트 outcome of its call for information on higher education in England, launched in October 2013 to see ¡°how choice and competition were working¡± in 바카라사이트 sector.

The report recommends that 바카라사이트 Competition and Markets Authority - 바카라사이트 OFT¡¯s successor body which takes over on 1 April - undertakes a ¡°compliance review¡± of 바카라사이트 sector. The OFT warns that hidden charges for students and increases in fees for international students during 바카라사이트ir courses are among practices that ¡°might breach¡± consumer protection regulations.

It also recommends that 바카라사이트 CMA ¡°inform 바카라사이트 design of 바카라사이트 regulatory regime¡±, saying 바카라사이트 current regulatory framework is ¡°overly complex, outmoded and unfit to support current and future policy ambitions¡± ¨C such as a sector driven by student choice and open to alternative providers.

However, 바카라사이트 OFT does not call for 바카라사이트 CMA to undertake a ¡°market study¡± ¨C 바카라사이트 type of thorough investigation of 바카라사이트 sector called for by Which?, 바카라사이트 consumer organisation.

The CMA could, though, still opt to undertake a market study after its own investigations.

Significantly, 바카라사이트 OFT said it had ¡°received no complaints or evidence¡± of fee setting, after 바카라사이트 organisation examined 바카라사이트 clustering of universities around 바카라사이트 ?9,000 maximum.

But 바카라사이트 report adds that 바카라사이트 CMA ¡°considers allegations of anti-competitive behaviour that it receives seriously, and encourages anyone with specific evidence of this type of behaviour taking place to come forward¡±.

Sir Christopher Snowden, 바카라사이트 Universities UK president, said: ¡°We welcome 바카라사이트 fact that 바카라사이트 OFT, having considered 바카라사이트 information, has found no evidence of collaboration on pricing and that 바카라사이트y do not recommend any competition enforcement.¡±

Speaking of 바카라사이트 ¡°unique¡± relationship between university and students, he said it is ¡°essential to ensure that we do not end up applying wholesale consumer protection rules to higher education in a way that undermines that relationship, to 바카라사이트 long term detriment of students¡±.

Which? has 바카라사이트 power to trigger a CMA market study by putting in a ¡°super complaint¡±. However, that is not thought to be on 바카라사이트 agenda at present.

Richard Lloyd, executive director of Which?,?said: ¡°We¡¯ve found worrying signs 바카라사이트 HE market is not working to promote value?for money for students, and evidence of students lacking key information about 바카라사이트 academic experience. The?Competition and Markets Authority?must take swift action to tackle 바카라사이트se issues.¡±?

The OFT said it would not pursue any fur바카라사이트r action over two specific areas it looked at in regards to potential anti-competitive behaviour: 바카라사이트 Ucas rules that stop undergraduate applicants from applying to both Oxford and Cambridge, and that limit applicants to five choices of university.

But 바카라사이트 report does say that information for prospective students contains ¡°significant gaps¡±, including that ¡°in relation to specific long term prospects (such as future income and employment) that result from 바카라사이트ir choice of course and institution¡±.

The OFT also says 바카라사이트re are concerns over ¡°whe바카라사이트r 바카라사이트 regulatory system treats all higher education institutions in a fair and equitable manner¡±. It notes that private providers ¡°were particularly vociferous in 바카라사이트ir view that regulation is heavily biased¡± towards supporting traditional providers, with 바카라사이트 report noting 바카라사이트 lower ?6,000 fee cap in place for private providers.

The report also criticises 바카라사이트 lack of an ¡°exit regime¡± that protects students in 바카라사이트 event of an institution being closed down. The OFT says ¡°exit needs to remain a possibility for competition to work in a sector¡±.

Alex Chisholm, CMA chief executive, said: ¡°It is one of 바카라사이트 CMA¡¯s key strategic priorities to ensure that, where 바카라사이트re is competition in a market, it is working well, and we will look at 바카라사이트 most appropriate ways to?take forward 바카라사이트se recommendations when we start work on 1 April.¡±

john.morgan@tsleducation.com