Allegations of anti-competitive behaviour among biggest tech suppliers to government...
MPs are calling on the government to launch an "urgent" investigation into allegations of anti-competitive behaviour among the largest tech suppliers to government.
The Public Administration Select Committee (PASC) is calling for an investigation into allegations made to it while it was gathering evidence for its report into how government buys technology, Government and IT - "A Recipe for Rip-Offs": Time for a New Approach, which was published today.
The report refers to the government's use of 18 suppliers to carry out about 80 per cent of its IT work, which it says places too much power and public money in the hands of a small group of vendors.
The PASC report calls on government to look into the allegations of anti-competitive behaviour: "Extremely serious allegations have been made about the behaviour of some large suppliers," it says.
"Whether or not this constitutes a cartel in legal terms, it has led to the perverse situation in which the governments have wasted an obscene amount of public money.
"The government should urgently commission an independent, external investigation to determine whether there is substance to these serious allegations of anti-competitive behaviour and collusion."
IT industry trade body Intellect has vigorously denied the allegations that suppliers are operating a cartel, saying there is "no supporting evidence" for the claim, which it described as "inaccurate and misleading".