BIS Consults On Private Actions In Competition Law

On 24 April 2012, the Department for Business, Innovation and Skills (BIS) launched a consultation on how best to encourage damages actions based on breaches of competition law.  At present, the level of these claims is very low in the UK.  Current disincentives against bringing such claims include the difficulties and expense of going to court and the fact that although large sums may be at stake, they are spread across many businesses or consumers with each one having lost only a small amount.

BIS' proposals focus on four areas:

• extending the remit of the Competition Appeal Tribunal (CAT) for competition damages actions in the UK;
• introducing an opt-out collective actions regime for competition damages claims;