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August 2010

OFT consultation on Competition Act investigation procedures guidance
On 20 August 2010 the OFT launched a consultation on its proposed guidance concerning the procedures it follows during Competition Act investigations. The Competition Act 1998 prohibits agreements which prevent, restrict or distort competition in the UK and also anti-competitive behaviour by dominant undertakings. The draft guidance builds on existing, less detailed guidance and aims to reflect the ways in which the OFT's procedures have changed since the existing guidance was published in March 2005. It also introduces new initiatives, including offering informal discussions with potential complainants before they file a complaint and a commitment to decide within four months whether or not to formally open a case. The OFT believes that providing potential complainants and defendants with greater clarity should also help it to improve delivery of its investigations.

July 2010

Morgan Crucible CEO's appeal against extradition for cartel activity fails in the UK Supreme Court
Following the carbon and graphite products cartel finding, the UK Supreme Court has unanimously dismissed an appeal against extradition to the USA on human rights grounds by Ian Norris, the former CEO of Morgan Crucible plc.

Footing the bill for cartel liability: directors beware
A recent English High Court judgment brings closer the prospect of a company being able to sue employees and executives to recover fines imposed for breach of competition rules. This may have important implications for companies, directors and insurers, as well as raising questions as to the effectiveness of antitrust fines.

Commission launches monitoring of patent settlements between pharmaceutical companies
The European Commission has asked a number of pharmaceutical companies to provide copies of their patent settlement agreements. The information provided could prompt the Commission to take action against specific companies under the competition rules.

European Commission report on quantifying antitrust damages
Earlier this year the European Commission published a report prepared by Oxera on quantifying antitrust damages. The report aims to assist the Commission in developing its guidance for the benefit of national courts and parties to antitrust damages actions.

European Commission clears Oracle's acquisition of Sun Microsystems
The European Commission has published its full decision clearing the Oracle acquisition of Sun, despite an in-depth Phase II investigation and strong concerns over the database market. The Commission has relied heavily on the specific nature of open source software, and a number of "public commitments" made by Oracle.

Rambus settles European Commission 'patent ambush' investigation
The Commission's long running 'patent ambush' investigation has been settled by Rambus giving pricing commitments on future licence royalties. Therefore no formal finding of a patent ambush exists, but the Commission has indicated what might constitute such an abuse.