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ARTICLE · 15 MARCH 2011

OFT Heavily Criticised For Its Approach To Penalties

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The UK's Competition Appeal Tribunal ("CAT") has reduced to a fraction of the original amount the fines imposed by the UK Office of Fair Trading ("OFT") on six construction companies in the construction cover pricing case.

United KingdomAntitrust/Competition Law

Originally published 14 March 2011

Keywords: OFT, competition appeal tribunal, CAT, fines, construction cover pricing

The UK's Competition Appeal Tribunal ("CAT") has reduced to a fraction of the original amount the fines imposed by the UK Office of Fair Trading ("OFT") on six construction companies in the construction cover pricing case. The CAT's judgment, handed down on 11 March 2011, criticises the OFT's view of the seriousness of the infringements concerned and the OFT's "one size fits all" approach to adding a deterrence factor to the companies' basic fines.

The judgment will be a significant blow to the OFT, as it has reduced fines totalling £41.78 million to £4.4 million. It is likely to force the OFT to reconsider its approach to calculating penalties in future cases.

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