CAT allows collective proceedings order in competition damages claim against Qualcomm

 

CAT allows collective proceedings order in competition damages claim against Qualcomm

 

The Competition Appeal Tribunal (CAT) has allowed an application to commence collective proceedings under section 47B of the Competition Act 1998 by the Consumer's Association (Which?) against Qualcomm Incorporated (Qualcomm).

The claim alleges that Qualcomm abused its dominant position in the markets for patent licensing and chipsets to overcharge phone manufacturers including Apple and Samsung for technology licences.

The CAT heard objections in relation to the modelling of pass-on charges but considered that the regression analysis was sufficiently based on fact for a collective proceedings order (CPO) to be granted.

The CAT dismissed the argument that the CPO was not sufficiently supported by a cost-benefit analysis.  The damages of £16-17 per class member were small but not so small as to be insignificant, especially in the current economic climate.

The CAT concluded that the Consumers Association (Which?) meets the authorisation condition, and the claims meet the eligibility condition.

The CAT therefore made the CPO on an opt-out basis allowing the £480 million claim to proceed.

The case is another example of a growing body of cases being brought before the CAT which are not standard follow on cases.  No opt-out collective claim was certified in the first five or so years since the Consumer Rights Act 2015 – but there are now four opt-out collective proceedings certified in 2022.

1266/7/7/16 Walter Hugh Merricks CBE v Mastercard Incorporated and Others

1381/7/7/21 Le Patourel v BT Group Plc and British Telecommunications Plc

1304/7/7/19 Gutmann v First MTR South Western Trains Limited and Another and 1305/7/7/19 Justin Gutmann v London & South Eastern Railway Limited

Case 1382/7/7/21 Consumers' Association v Qualcomm Incorporated