CMA publishes one stop guide to obtaining redress for competition law breaches

The guidance reflects changes to the jurisdiction of the Competition Appeal Tribunal (CAT), new opt-out collective actions and settlements and the competition and sector regulators' powers to approve voluntary redress schemes set up by companies to compensate those who have lost out as a result of their anti-competitive behaviour. It also takes into account a new EU Directive on damages for competition law breaches, which will be implemented in the UK later this year.

Competition law expert Ben Lasserson of Pinsent Masons, the law firm behind Out-Law.com, said that the document provided a helpful user-friendly summary of the available options to seek redress for competition law breaches.

"This guidance  is the latest in a pattern of developments which aim to facilitate private actions and to  actively encourage those affected by competition law infringements to take action" he said.

The CRA, which came into force on 1 October 2015, made a number of changes designed to make it easier for businesses and individuals affected by anti-competitive behaviour to obtain redress. These include enhanced collective action rights, where several claims by different businesses and individuals can be brought together before the CAT on either an 'opt-in' or 'opt out' basis, and new powers enabling the CMA or a sector-specific regulator to approve voluntary redress schemes drawn up and submitted by businesses that have breached competition law.

The remit of the CAT has also been extended, giving it the power to hear standalone competition claims, meaning those not based on a previous infringement decision by a competition law authority. Before the CRA came into force, it only had the power to hear 'follow-on' actions based on previous infringement decisions. The CRA also introduced a new 'fast track' procedure, allowing the CAT to deal quickly and more cheaply with less complex cases brought by small businesses.

The CMA's new guidance is intended to provide an outline to businesses and individuals of their new rights, although it is not intended to cover all competition-related private actions that can be brought. It considers when a claim can be brought; the courts that have jurisdiction to hear competition law damages claims; stand-alone and follow-on actions; collective proceedings; voluntary redress schemes; the time limits for commencing claims; and the relief available.

"It is important that those who suffer harm from breaches of competition law are able to obtain effective redress," said Roland Green, the CMA's senior policy director. "We hope this guide will help consumers and businesses understand how to do so."