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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Société Coopérative De Production Seafrance S.A. v Competition and Markets Authority [2015] EWCA Civ 768 (10 July 2015) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2015/768.html Cite as: [2015] EWCA Civ 768 |
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ON APPEAL FROM
THE COMPETITION APPEAL TRIBUNAL
(MR JUSTICE ROTH)
Strand London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE TOMLINSON
SIR COLIN RIMER
____________________
SOCIÉTÉ COOPÉRATIVE DE PRODUCTION SEAFRANCE S.A. | Respondent/Appellant | |
-v- | ||
COMPETITION AND MARKETS AUTHORITY | Applicant/First Respondent | |
DFDS A/S | Second Respondent |
____________________
WordWave International Limited
A Merrill Communications Company
165 Fleet Street, London EC4A 2DY
Tel No: 020 7404 1400 Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
The Respondents SCOP and DFDA A/S did not attend and was not represented
____________________
Crown Copyright ©
"Until and including 10 July 2015 or the determination by the Supreme Court of any application for permission (whichever first occurs), the quashing of the following provisions in Schedule 2 to the Remedies Order is stayed - namely paragraph 1, paragraph 2(a), paragraphs 2(d), 2(e), 2(f), 2(g) and paragraph 3, with Schedule 2, paragraph 2(f) to be applied as if the words 'in accordance with the requirements of Article 2' were deleted. For the avoidance of doubt, it will be for the CMA to seek from the Supreme Court, if so minded, any continued stay of the quashing of the Remedies Order pending the determination of any appeal for which permission may be given. In the event that it appears unlikely that any decision from the Supreme Court as to permission will be received before 10 July 2015, the CMA is at liberty to apply to the Court of Appeal on notice to the other parties on an oral hearing for any further interim protective relief to which it considers it ought to be entitled."
(a) On 28 May, GET gave notice to the SCOP that it would be terminating the SCOP's contract to operate the vessels with effect from 2 July 2015;
(b) On 22 June, GET and DFDS publicly announced that GET had accepted an offer from DFDS for the Rodin and the Berlioz, to take effect from 2 July. According to the press announcement, the agreement is for a "bareboat" charter of both vessels, with a put option expiring at the latest in mid-2017 entitling GET to require DFDS to purchase both vessels.
(c) GET has announced that it would like to retain the freight-only vessel, the Nord Pas-de-Calais, and on 9 June it asked the CMA to suspend the interim measures in relation to the integration of the vessel into the GET business.
(a) Requests for copies of the agreements between GET and DFDS relating to the Rodin and Berlioz have not been answered. As a result, the CMA says that it is unable to assess them, to understand what the termination provisions are or whether there are any non-competition clauses in view, in particular, of GET's proposal to continue to own the Nord Pas-de-Calais. The bottom line is that the CMA is unable to assess whether GET might be able to re-acquire the two vessels during the prohibition period and so retain the risk of the SLC found by Commission;
(b) The CMA asserts that it has also been unable to obtain any information as to GET's plans for the Nord Pas-de-Calais. It is therefore also unable to understand the competition implications of GET's continued ownership of that vessel, including its future operation, perhaps with other vessels, a situation which the initial two-year prohibition period in the Remedies Order was intended to address.
"We conclude that the merger may be expected to result in an SLC in the market for the supply of transport services to passengers on the short sea and in the market for the supply of transport services to freight customers on the short sea. This may be expected to lead to a worsening (relative to the counterfactual situation) of the prices charged by both [GET] and ferry operators in these two markets."
"We thus believe that, if we did not take measures to avoid circumvention, there is a material risk that GET might maintain its capacity on the Dover-Calais route, and that for it to do so would have the effect of undermining the effectiveness of the proposed remedies. Were the prohibition remedy to take effect or GET to dispose of all three Vessels, circumvention could take the form of GET re-establishing ferry operations and rebuilding the MFL business using other vessels, capitalizing so far as possible on its existing goodwill and contractual relationships with the SCOP and otherwise. Were alternatively GET to divest only the Berlioz and the Rodin, circumvention might take the form of continuing to operate the Nord Pas-de-Calais as well as other business assets, and supplementing its operations by adding one or more new vessels."
"9.1 The CMA may, in exceptional circumstances where the CMA considers it appropriate, in response to a written request from GET showing good cause or otherwise at the CMA's own discretion, grant an extension:
9.1.1 of any period specified in the Order within which GET must take action; or
9.2.2 to any date from which any obligations or prohibitions set out in this Order shall apply ..."
"(2) Without prejudice to the generality of the foregoing, if the Tribunal considers that it is necessary as a matter of urgency for the purpose of-
(a) preventing serious, irreparable damage to a particular person or category of person, or
(b) protecting the public interest
the tribunal may give such directions as it considers appropriate for that purpose."
"(3) For all purposes of or incidental to–
(a) the hearing and determination of any appeal to the civil division of the Court of Appeal, and
(b) the amendment, execution and enforcement of any judgment or order made on such an appeal
the Court of Appeal shall have all the authority and jurisdiction of the court or tribunal from which the appeal was brought."
"No powers of case management under the Civil Procedure Rules could authorise the court to do something that constitutionally it has no power to do. This court has no power to authorise general acts which are contrary to the law, unless there is some law authorising them to do it, and there is nothing in the relevant legislation that allows the court to do this."
"Although the CMA is a public body it is submitted that there is no adverse effect in the absence of further interim relief in respect of NPC. It should be borne in mind that the CMA's chosen remedy was a prohibition remedy rather than divestment, and there is nothing to stop the CMA from imposing such remedy should it ultimately prevail before the Supreme Court."