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The Competition Appeal Tribunal (the “CAT”) has handed down judgement in the first follow damages claim to be brought before it under Section 47A of the Competition Act 1998.
In 2 Travel Group Plc (In Liquidation) v Cardiff City Transport Services Limited Michael and Anneliese represented 2 Travel who were claiming damages against Cardiff Bus, a company wholly owned by Cardiff Council, following a decision by the OFT that Cardiff Bus had abused their dominant position by engaging in predatory conduct. The CAT awarded damages for loss of profit in favour of 2 Travel.
The CAT also uniquely awarded 2 Travel exemplary damages. The CAT held that:
“We find that Cardiff Bus’ behaviour is only consistent with that of an organisation that had deliberately decided to disregard the law, and that this conduct was done in cynical disregard of 2 Travel’s rights.”
This is the first English case in which exemplary damages have been awarded for a breach of competition law.
Click to read the judgment in 2 Travel Group Plc v Cardiff City Transport Services