Clause 18 - Findings of infringements
Enterprise Bill
4:15 pm
Miss Melanie Johnson (Parliamentary Under-Secretary, Department of Trade and Industry; Welwyn Hatfield, Labour)
The amendments seek to prevent decisions relating to breaches of articles 81(1) and 82 of the EU treaty from being binding on the courts for the purpose of damages claims. However, decisions relating to breaches of the chapter 1 and chapter 2 prohibitions of the Competition Act 1998 would remain binding for the purposes of such claims. The OFT has powers to apply articles 81 and 82 in some areas—for example, aviation and maritime transport—under the EC Competition Law (Articles 84 and 85) Enforcement Regulations 2001.
The amendments would create an unbalanced system in relation to damages claims, whereby some findings of infringements are binding but others are not. The streamlined court procedure created by the clause would not be available to consumers harmed by anti-competitive behaviour where the decision establishing the breach had been taken under EC competition law. That could increase the costs of such consumers bringing a claim for damages compared with the costs of those bringing a similar claim in respect of a breach of UK competition law. Two sets of consumers harmed by similar illegal activity would therefore be subject to different procedures in the courts—one more lengthy and hence more costly than the other. I am sure that that is not what the hon. Member for Eastbourne wants and it is not the fair and transparent system that we would all want. Whatever the thinking of the hon. Member for Eastbourne on the amendments, I hope that I have persuaded him that they should be withdrawn.