Institute for Legal Reform responds to the Competition Appeals Tribunal consultation

28th Apr 2015

The Institute for Legal Reform (ILR) has responded to The Competition Appeal Tribunal (CAT) consultation, which sought feedback on the recommendations from Sir John Mummery’s independent review of the CAT rules of procedure. The CAT is a specialist judicial body whose function is to hear and rule on appeals of decisions made by the competition authorities. The CAT has a cross-disciplinary expertise in law, economics, business, competition and economic regulatory issues.

ILR’s primary response to the review of the CAT rules highlighted the need to ensure adequate safeguards are contained within the proposed CAT rules. ILR explained that the new model of private enforcement of competition through “opt-out” collective redress, is in danger of abuse and generates risk for business of all sizes, while delivering little benefit to victims of infringements.

In addition, ILR expressed concern about the potential role of third party litigation funders in the new forms of collective litigation (whether “opt-in” or “opt-out”). ILR explained that experience elsewhere has shown that creating opportunities for hedge funds and other private investors to participate in private litigation, with no motivation other than to reap a profit from the dispute, is highly susceptible to abuse and drives up both the cost and volume of litigation.

To see ILR’s full response click here: US Chamber Institute for Legal Reform – CAT Consultation Response