Damages awarded in first UK trucks cartel competition damages action

 

Damages awarded in first UK trucks cartel competition damages action

The Competition Appeal Tribunal (CAT) has awarded follow-on damages in actions brought by Royal Mail and BT against DAF Trucks.

The CAT has ordered DAF to pay approximately £17.5 million in damages to Royal Mail and BT.  The case is a landmark judgment representing the UK’s first successful follow-on damages claim against a participant in the EU trucks cartel.

The claims are based on the July 2016 settlement decision of the European Commission finding that certain EEA manufacturers of trucks were engaged in a cartel in breach of Article 101 of the TFEU over a 14-year period (broadly, 1997-2011). 

The Commission found anti-competitive conduct which consisted of coordination amongst the participating undertakings in respect of the EEA gross list prices for medium and heavy trucks.

The claimants claimed damages in the form of the increased prices and lease payments that they paid for those trucks which were higher than they would have been without the infringement (the ‘overcharge’).

The CAT found that DAF is liable to be assessed for an overcharge at 5% for both claimants on their value of commerce over the whole of the relevant period.

The CAT rejected certain of DAF’s defences including as to resale pass-on.

The CAT has invited the parties to calculate the damages including interest and tax based on its findings.

The value of the overcharge found by the CAT is quite high given that the value of relevant trucks can range from £60,000 to £300,000 over the period.

The ruling is likely to embolden other trucks cartel claimants whose claims remain to be heard and fuel the growing momentum of competition damages claims in the UK.

 

Royal Mail Group Limited v DAF Trucks Limited and others and BT Group PLC and others v DAF Trucks Limited and others [2023] CAT 6