Competition Act 1998

Over the last few months, the OFT has dealt with a number of cases under the Competition Act 1998 (CA 98). The following are a list of important findings by the OFT:

Infringements

• Lladro Comercial SA: The Director General of Fair Trading (DGFT) concluded on 10 April 2003 that Lladro Comercial SA and 155 UK retailers have infringed the CA 98 by entering into bi-lateral price-fixing agreements. No financial penalty has been imposed on any of the parties to the agreement. The decision can be viewed here.
• Genzyme Limited: The DGFT concluded on 27 March 2003 that Genzyme Limited has abused its dominant position in the market for the supply of drugs for the treatment of Gaucher disease in the UK, breaching the prohibition in Chapter II of CA 98. The decision can be viewed here.
• Hasbro II: The DGFT found on 19 February 2003 that agreements between Hasbro UK Ltd, Argos Ltd and Littlewoods Ltd fixing the price of Hasbro toys and games breached the Chapter I prohibition of CA 98. Argos was fined £17.28 million and Littlewoods was fined £5.37 million. Hasbro was granted full leniency, and so its potential penalty of £15.59 million was reduced to zero. The decision can be viewed here.
• Hasbro I: The DGFT on 6 December 2002, found that agreements between Hasbro UK Ltd and distributors fixing the price of Hasbro toys and games infringed the Chapter I prohibition in CA 98. A £4.95 million fine was imposed on Hasbro. However, no fines were imposed on the ten distributors as Hasbro had taken the initiative in fixing prices and the distributors were in a substantially weaker position. The decision can be viewed here.
• Northern Ireland Livestock and Auctioneers' Association (the NILAA): On 4 February 2003, the DGFT concluded that the NILAA had infringed the Chapter I prohibition of the CA 98 by recommending that its members introduce a standard (or uniform) commission payable by purchasers of livestock in Northern Ireland cattle marts. The decision can be viewed here.
• BSkyB: On 30 January 2003, the DGFT found that BSkyB has not abused its dominant position by exercising a margin squeeze on its premium channel distributors, or by practising anticompetitive mixed bundling in the wholesale provision of such channels. The decision can be viewed here.

Non-infringements

• Anaesthetists' groups: On 15 April 2003, the OFT concluded that certain groups of anaesthetists had not infringed the Chapter I prohibition of CA 98. The OFT considers that each of the groups operates as a single undertaking and therefore an agreement between members of the group as to the level of fees charged will not amount to an agreement between undertakings. The decision can be viewed here.
• Thames Water: On 31 March 2003, the Director of Water Services concluded that the views put forward in a letter dated 8 March 2002 to Enviro-Logic Ltd and a letter dated 26 March 2002 to Thames Water Utilities Ltd amounted to a decision that Thames Water had not infringed the Chapter II prohibition of CA 98. The decision can be viewed here.
• BT: The Director General of Telecommunications decided on 9 January 2003, that the Chapter II prohibition has not been infringed by BT (Group) plc in respect of allegations made by Freeserve.com Plc (Freeserve) regarding broadband internet access and that this decision is appealable to the CCAT. The decision can be viewed here.

For further information please contact:

Dick Taylor on +44 (0)20 7367 2108 or at richard.taylor@cms-cmck.com;
David Marks on +44(0)20 7367 2136 or at david.marks@cms-cmck.com; or
Susan Hankey on +44(0)20 7367 2960 or at susan.hankey@cms-cmck.com