CMA review of liner shipping block exemption

 

CMA review of liner shipping block exemption

The Competition and Markets Authority is reviewing the retained EU Liner Shipping Consortia Block Exemption Regulation (Commission Regulation 906/2009) (Shipping Block Exemption).

The Competition (Amendment etc.) (EU Exit) Regulations 2019 preserved the existing EU block exemption regulations as retained law.  These regulations also allowed the Secretary of State to renew or replace the retained EU block exemptions.

The UK’s review of block exemptions can occur in parallel with the EU review or expiration of the underlying block exemptions or it can occur independently.

The Shipping Block Exemption provides an automatic exemption for agreements between liner shipping companies allowing for joint services to be provided through consortia.  It does not allow liner shipping companies to agree to fix prices, otherwise limit capacity or sales, or allocate markets or customers.

The Shipping Block Exemption is due to expire on 25 April 2024. Meanwhile the European Commission has launched a review on whether the EU block exemption continues to be fit for purpose. 

In carrying out its own review the CMA will consider whether the Shipping Block Exemption serves the interests of UK businesses and consumers taking account of the features of the UK market. Not least, this takes place against a background of global supply chain disruptions. 

The CMA is expected to consult further on the UK Shipping Block Exemption in retained form in 2023.

Meanwhile the CMA is undertaking reviews of a number of other EU block exemptions existing as retained EU law in the UK. This includes a review of the retained Vertical Block Exemption Regulation (November 2021) and the retained Horizontal Block Exemption Regulations (June 2022). The CMA also consulted, in July 2022, on its proposed recommendation on the retained Motor Vehicle Block Exemption Regulation.

https://www.gov.uk/cma-cases/liner-shipping-consortia-block-exemption-regulation

Competition Appeal Tribunal upholds appeal in first ever MFN infringement case

 

Competition Appeal Tribunal upholds appeal in first ever MFN infringement case

 

The Competition Appeal Tribunal has ruled in favour of BGL (Holdings) Limited, BGL Group Limited, BISL Limited and Compare the Market Limited (Compare The Market) in its challenge to the decision of the Competition and Markets Authority (CMA) imposing penalties on Compare The Market of around £18 million for breach of Article 101 TFEU and the Chapter I prohibition.

The CMA found that Compare The Market had imposed wide “most favoured nation” (MFN clauses in its agreements with home insurers providers in relation to the use of its price comparison website (PCW).  

The CAT found that the CMA had made errors in defining the relevant market as a single market.  The CAT considered that the CMA should have defined two separate markets identifying the two sides of the platform relating to the supply of customer introduction services to home insurance providers and the supply of home intermediation services to consumers.

The CAT also found material errors in the CMA’s analysis of the effect on competition; in particular the CMA had failed to assess the significance of other channels for the purchase of home insurance by consumers.

The CAT was unable to test much of the evidence relied on by the CMA stating that much of it was anecdotal.  It was not convinced that MFNs had a potential anti-competitive effect on promotional discounts.

The CAT upheld the appeal and set aside the CMA's decision.

BGL (Holdings) Limited and others v Competition and Markets Authority [2022] CAT 36

CAT issues Practice Direction on the conduct of collective proceedings following certification

 

CAT issues Practice Direction on the conduct of collective proceedings following certification

 

The Competition Appeal Tribunal (“Tribunal”) has issued Practice Direction 3/2022 relating to the conduct of collective proceedings after certification.

This practice direction follows the Tribunal’s May 2022 ruling on case management in Le Patourel v BT Group (“Le Patourel”).  Le Patourel decided that the same CAT tribunal would both deal with case management issues and hear the trial.  In the event that there is a collective settlement proposal, this would be dealt with by a separately constituted tribunal (a "settlement tribunal").

This approach differs from the usual approach in paragraph 6.7 of the CAT's Guide to Proceedings 2015 (which envisages the appointment of a "trial tribunal" to take over the conduct of proceedings from the "case management tribunal" that heard and decided the CPO application).

The most likely situation in which another tribunal may need to be constituted is if a collective settlement is proposed. In that event, the parties should notify the Registrar of the proposed collective settlement and request the constitution of a settlement tribunal to consider the proposed settlement and give or make any appropriate directions or orders.

This ensures that the trial tribunal can be kept apart from the consideration of any settlement and ready to continue to trial if necessary.

https://www.catribunal.org.uk/sites/default/files/2022-08/01Aug2022_Practice%20Direction_ConductofCollectiveProceedingsAfterCertification_0.pdf

Le Patourel v. BT Group [2022] CAT 21