BBC hands OFT files on Gaviscon

By Martin Shankleman
Business correspondent, BBC News

Gaviscon firm's plan revealed

The BBC has handed over to the Office of Fair Trading evidence of plans by the makers of the heartburn medicine Gaviscon to thwart competition.

The papers were found by a Newsnight investigation which revealed Reckitt Benckiser bosses had schemed to cheat the NHS out of millions of pounds.

The files show how bosses plotted to deter rivals from making cheap generic copies of Gaviscon.

Reckitt Benckiser denies that it has the power to stop generic competitors.

'Smoking guns'

Following transmission last week, the BBC received two requests for the documents from the NHS counter fraud unit, and the Office of Fair Trading.

The counter fraud unit said it was considering launching an enquiry, and the Office of Fair Trading said it was "keen to inspect" the files.

A leading competition lawyer, John Schmidt, who inspected the evidence described some of the emails as "smoking guns".

Under the Competition Act of 1998, companies which abuse a dominant market position face large fines, of up to 10% of their turnover.

Reckitt Benckiser also denies that it dominates the heartburn remedies market.