Court of Appeal upholds procurement competition law challenge against Network Rail

Court of Appeal upholds procurement competition law challenge against Network Rail

The Court of Appeal has dismissed a challenge by Network Rail against a judgment of the Competition Appeal Tribunal (CAT) on preliminary issues in the standalone damages action brought by Achilles Information Limited (Achilles) against Network Rail.

Network Rail imposes requirements on those wishing to work on Network Rail’s managed infrastructure, that suppliers must be approved by the Railway Industry Supplier Qualification Scheme (“RISQS”) run by the Rail Safety and Standards Board. The CAT concluded that by including the RISQS-only rule in two of its schemes, Network Rail is entering into agreements between undertakings which have as their effect the prevention, restriction or distortion of competition within the UK.

The Court of Appeal ruled that the CAT made no errors in its assessment that the operation of the schemes constituted relevant economic activity under Chapter I/II. 

The judgment will embolden potential claimants who wish to challenge the procurement procedures of public bodies who are themselves not directly involved in the supply of the relevant goods and services in an economic market.

Network Rail Infrastructure Limited v Achilles Information Limited [2020] EWCA Civ 323