Reckitt Benckiser has been given time to respond to the OFT’s allegations.

Reckitt Benckiser “abused its market position” says the Office of Fair Trading (OFT) as it issues its Statement of Objections with regards to allegations the manufacturer restricted competition to its Gaviscon brand.

Reckitt Benckiser’s alleged market abuse stems from news that the company paved the way for dominance of its Gaviscon brand by “withdrawing and de-listing” the cheaper version of the heartburn liquid from the NHS prescription channel – used by GPs when prescribing drugs.

According to the BBC, the OFT began its investigation after a whistleblower at the firm revealed incriminating evidence on the Newsnight programme in 2008. It apparently showed Reckitt Benckiser executives scheming to create obstacles to block rival manufacturers from selling cheap generic copies.

Simon Williams, Senior Director for Goods at the OFT, said: “This case raises significant and complex competition issues in relation to the supply of prescription drugs to the NHS.

“Reckitt Benckiser will now have a full opportunity to respond to our proposed findings before we decide whether competition law has in fact been infringed.”

Reckitt Benckiser continues to maintain its innocence in the debacle. In a statement posted on its website the company said: “Reckitt Benckiser believes it competes fairly and within the letter and spirit of the law in all our operations, and has co-operated fully with the OFT throughout its inquiry.”

Reckitt Benckiser is one of the leading manufacturers of household products in the world and is well known for leading brands such as Cilit Bang, Calgon, Vanish and Nurofen.

The company said it will review the OFT statement and respond accordingly. If it is eventually found guilty of abusing its position it would be fined up to 10% of its worldwide turnover – which in 2009 was around £7 billion.