The Office of Fair Trading (OFT) is to pay up to £100,000 for tip-offs leading to action against price fixing and other anti-competitive behaviour.
The new policy of financial incentives for information will initially run for 18 months and is similar to a scheme in South Korea.
A business found to be part of a cartel can be fined up to 10% of its turnover.
The move follows an OFT campaign offering immunity for UK firms that blow the whistle on cartels.
