Francesca Richmond explains why private damages actions resulting from competition law infringements are likely to increase
The issue of a new follow-on damages claim by Freightliner Limited and Freightliner Heavy Haul (Freightliner) in the Competition Appeals Tribunal (CAT) confirms that the volume of private damages actions based on breaches of competition law continues to grow.
The CAT announced early last month that Freightliner has issued a follow-on damages action against English, Welsh & Scottish Railway Limited (EWS). Freightliner's business is moving freight by rail and it has based its claim for damages on the finding by the Office Rail Regulation (ORR) that EWS abused its dominant position in the market for coal haulage by rail in Great Britain. The ORR fined EWS £4.1m for its behaviour, which was stated to include:
● entering into contracts for coal haulage with industrial users of coal which included exclusionary terms, ie exclusivity and discount provisions;
● discriminating against Enron Coal Services Limited; and
● employing predatory pricing strategies in respect of supply to specific power stations so as to eliminate competitors.
Abusive behaviour
Freightliner's
