CAT rules in favour of self-represented claimant in RPM case

 

The Competition Appeal Tribunal (CAT) has ruled in a claim by Up & Running (UK) Limited against Deckers UK Ltd (Deckers), a retailer of specialist running shoes. The case appears to be the first time a self-represented claimant has been successful in the CAT.  It is only one of few claims that have undergone the fast-track procedure.

The CAT found that the Deckers selective distribution system did not meet the criteria for establishing that a selective distribution agreement has a legitimate goal and falls outside Article 101(1) of the TFEU (being relevant at the time the relevant practices occurred).  The CAT found that the system lacked transparency, it employed some quantitative criteria and was applied in a discriminatory manner.

The CAT held that a supply agreement that allowed Deckers to prevent Up and Running from creating a secondary website to sell shoes at a discount, was a ‘by object’ infringement of UK/EU competition rules because it pursued “no plausible material objective” other than to restrict competition.

The CAT found that the agreement contained hardcore restrictions so that the EU Vertical Block Exemption did not apply.

The CAT concluded that Up & Running has suffered loss as a result of the infringements of the Chapter I prohibition (the amount of which will be determined separately).

However, the CAT declined to make an injunction requiring Deckers to supply the relevant product to Up & Running.

The ruling can be understood in light of its very specific facts.  Nevertheless, it is likely to cause a number of retailers and their lawyers to pause for thought on whether their distribution systems and supply practices are compatible with competition law.

Up & Running (UK) Limited v Deckers UK Limited [2024] CAT 61