The Competition and Markets Authority (CMA) has updated its September 2023 report in its review of competition and consumer issues in relation to artificial intelligence (AI) foundation models. In March 2023 the government asked regulators, including the CMA, to think about how innovation in and deployment of AI can be supported. The CMA sets out its final principles for guiding the market to positive outcomes in terms of access, diversity, choice, fair dealing, transparency and accountability. The CMA also identifies risks that firms that control critical inputs for developing foundat ..read more

  The Competition and Markets Authority (CMA) has issued an open letter to nail technicians to remind them and their trade associations of their obligations under competition law.  The CMA has unsurprisingly emphasised that businesses must set their prices independently of their competitors. The CMA has further underscored that businesses should not discuss or coordinate their actions on the timing and amount of future prices increases (whether directly or through a trade body). The CMA’s guidance comes on the back of media reporting where the CMA notes that it understands that “a c ..read more

  The High Court has rejected an attempt by watch parts wholesaler Cousins to resurrect a claim against Swatch for abuse of dominance in a refusal to supply claim.  The Court ruled that the action would relitigate prior Swiss actions dismissing the claim. Mr Justice Michael Green ruled that the Lugano Convention applied to the previous Swiss Court rulings. The case dates back to supply chain events from 2015.  The Berne Commercial Court ruled in 2021 that Swatch’s refusal to supply was part of a rationalisation of its supply chain and was objectively justified and there was no ..read more

  Amendments to Digital Markets, Competition and Consumer Bill to prevent acquisitions by foreign powers   Amendments to the Digital Markets, Competition and Consumer Bill have been tabled, to amend the Enterprise Act 2002 to introduce a new regime for mergers involving newspaper enterprises and foreign powers. Under the amendments, the Secretary of State must give the Competition and Markets Authority (CMA) a “foreign state intervention notice” if the Secretary of State has reasonable grounds for suspecting that it is or may be the case that a "foreign state newspaper merger situati ..read more

  The Competition Appeal Tribunal (CAT) has granted an application by Mastercard and Visa for permission to appeal the CAT's judgment approving the funding arrangements for the applications for collective proceedings orders (CPOs) brought by Commercial and Interregional Card Claims I Limited (CICC I) and Commercial and Interregional Card Claims II Limited (CICC II), under section 47B of the Competition Act 1998. The proposed class representatives (PCRs) have revised their CPO applications and funding arrangements in light of the Supreme Court's judgment in R (on the application of PACCAR ..read more

  The Court of Appeal has held that a breach of the Public Contracts Regulations 2015 (SI 2015/102) that results in the wrong bidder being awarded a contract will not automatically constitute a "sufficiently serious" breach to warrant damages in accordance with Francovich v Italy (C-C/90) [1991] ECR 1-5357. The claimant brought a claim against NHSE.  The High Court found that there was a manifest error by NHSE which, if it had not been made, would have resulted in the claimant winning the tender.  NHSE committed a single, inadvertent breach in an otherwise careful procurement e ..read more

  The CMA has announced a market study into infant formula and follow-on formula in the UK. The CMA intends to use the market study to consider how the supply of formula has, or may have, adverse effects on consumers, and how it might work better. In the market study, infant formula comprises infant and follow-on formula as defined by Commission Regulation 2016/127, and formulas labelled as foods for special medical purposes that can be sold without prescription under Regulation 2016/128. The market study follows work that the CMA has conducted on the rising costs of living where its Nov ..read more

  CAT rules on carriage dispute in collective proceedings against Amazon The Competition Appeal Tribunal (CAT) has determined the "carriage issue" in two applications to commence collective proceedings, under section 47B of the Competition Act 1998, against Amazon.  The first application was brought by Ms Julie Hunter and the second by Mr Robert Hammond (each as the proposed class representatives). The proposed proceedings would both combine standalone claims for damages caused by alleged breaches by Amazon of Article 102 of the TFEU (prior to 31 December 2020) and the Chapter II pro ..read more

  CMA investigation into fine fragrances cartel The CMA has issued an update in its investigation into suspected infringements of the Chapter I prohibition of the Competition Act 1998 involving suppliers of fragrances and fragrance ingredients. The CMA launched its investigation in March 2023. The investigation was launched with a series of dawn raids alongside the European Commission, the Swiss Competition Commission and the US Department of Justice’s antitrust division. These led to four separate investigations by these antitrust agencies. The firms under investigation are Firmenich Int ..read more

8 January saw the publication of appeals by Apple and Meta against the European Commission's September 2023 decisions designating them as ‘gatekeepers’ for the purposes of Regulation 2022/1925 on contestable and fair markets in the digital sector (Digital Markets Act (DMA)). Apple’s designation is in relation to its operating system iOS and its online intermediation service App Store.  Apple claims the designation should be annulled insofar as it specified Apple’s operating system iOS as an important gateway for business users to reach end users, and insofar as it imposes on Apple an obl ..read more