It was big news that DG Comp officials, supported by their domestic counterparts, raided a number of sports broadcasters, including Fox in the UK, in relation to an investigation into a suspected cartel in relation to ‘media rights and related rights pertaining to various sports events’. As the investigation is ongoing there is relatively limited public information about the broadcasters who are targets of the investigation or the particular sports rights which are involved – of course there may be no cartel involved and the Commission may find nothing awry. However, as a great many dawn raids are triggered by a leniency application there may well be something afoot.
It is clearly too early to discuss the actuality, but it may be interesting to raise a, potentially heretical, question about one potential type of cartel in relation to sports media rights and ask some interesting questions.
The CAT judgment in Balmoral Tanks  CAT 23 is the latest in the Galvanized Steel Tanks Cartel – the UK cartel case that just keeps giving. It brought us the first UK based guilty plea under the original UK cartel offence, and then the first proper cartel offence trial which resulted in acquittals. This is the appeal against the CMAs ‘Information Exchange’ Decision that Balmoral had been party to an Art 101 TFEU concerted practice during a single meeting in July 2012. The appeal gives us a fascinating insight into the interaction between the criminal and civil investigations in this case, and the nature of unlawful information exchanges. Read More…
The news broke yesterday that the first fully contest trial in relation to the ‘old’ UK cartel offence results in both defendants being acquitted after the jury deliberated for “only a couple of hours”. As the ‘old’ cartel offence is no longer with us, being substantially amended in ERRA 2013, the wider impact of the acquittal might be perceived as being limited, but there are still lessons to be learned from what we know about the acquittal.
(By Scott Summers)
Since the latter part of 2014, the Conservative party has promised that if it won at the 2015 General Election, it would repeal the Human Rights Act 1998 (HRA) and enact a new British Bill of Rights (BBR). Now that the Conservatives have won the General Election by achieving a majority in the House of Commons, this plan could come to fruition. Whilst many have discussed the potential legal implications of repealing the HRA, there is one area of contention that has been completely overlooked; namely, the impact that repealing the HRA will have on competition law proceedings. This blog post seeks to address this issue by considering the implications that repealing the HRA may have on s.188 of the Enterprise Act 2002, (hereafter, the ‘UK criminal cartel offence’).
By Bev Williamson
Premiership Rugby Limited (the PRL) is the company that commercialises premiership rugby union in England. Its CEO, Mark McCafferty, has publicly rejected claims that Premiership operates as a cartel. He relies on the fact that English rugby union utilises a system of promotion and relegation for determining which teams compete amongst the professional elite. That being the case, the PRL, which is made up of representatives of each of the Premiership teams, together with the sport’s governing body, the Rugby Football Union (the RFU), may have found ways to create a cartel by stealth.
There is currently an ongoing dispute between academic staff and employers in the UK pre-92 Universities regarding the running of the USS pension scheme. I don’t want to get into the debate surrounding the reasons for the dispute, but an interesting competition law question has arisen regarding several UK Universities’ near identical responses to the fact the trade union that represents academic staff, the UCU, have announced a collective marking boycott as part of industrial action protesting at proposed changes to the pension scheme.
Two recent judgments handed down by the CJEU show how difficult it can be for a Member State to involve itself in fixing minimum prices for products. Given the ongoing challenge to minimum alcohol pricing in Scotland it is interesting that in both these cases the Court ruled against the fixing of prices, but for very different reasons. Neither case is directly analogous to the Scots alcohol MUP referred to the Court in Case C-333/14, but there are perhaps lessons that can be learnt.
The mainstream UK news media has today been gleefully reporting the large fines imposed by the Bundeskartellamt in the German Sausage cartel. What struck me as interesting is why that cartel, above so many others has broken out of the financial press and made the headlines?
Prof Cosmo Graham, from the University of Leicester, just posed me that very interesting question.
The #OpCotton ruling yesterday stayed a large City fraud prosecution because the defendants could not find Counsel willing to represent them at the reduced VHCC (Very High Cost Cases) rates now offered in Legal Aid cases. Many, see for instance David Allen Green in the FT and Alan Wagner in the New Statesman, have pointed out this may mean that VHCC cases are effectively unprosecutable in the UK. I don’t know if a Cartel Offence prosecution would normally fall into this VHCC class.
I’m reading Daniel Sokol’s ‘Policing the Firm’ (2013) 89 Notre Dame LR 785, and I’m finding his discussion of the role of ‘stigma’ in cartel enforcement interesting.
It’s led me to think about compliance programmes. If firms want to be given credit for having an ‘effective’ compliance programme could the CMA/DG Comp insist that within that programme there are real sanctions in discipline, demotion, or dismissal for all officers or employees who were engaged in cartel activity?
Would that make a scheme a more effective part of creating the right corporate compliance culture?