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Competition Law

Analysis - debate - current awareness

08 AUG 2011

Fines Without Foundations – the Implications of the CAT's Judgment in the Construction Recruitment Appeals [2011] Com Law 130

In parallel to the government’s consultation, the CAT has decided a number of appeals challenging the fines imposed by the OFT in its Construction bid rigging and Construction recruitment forum decisions as excessive and disproportionate. These cases raise a number of important issues in relation to the OFT’s approach to the calculation of fines and the level of the fines that it imposed.
Boris Bronfentrinker and Nicholas Frey discuss the three appeals arising from Construction recruitment forum. In its judgment, the CAT substantially reduced the fines imposed on the three appellants from about £39 million to £7.9 million. The CAT dealt in particular with the OFT’s use of the so-called ‘minimum deterrence threshold’ (MDT) to take the level of the penalty to be a sum equivalent to a proportion of turnover that in the OFT’s view secured specific and general deterrence. Bronfentrinker and Frey helpfully guide the reader through that issue and the others raised by the judgment. This article is based on a presentation given at the Fifth Junior Competition Practitioners’ Conference held in December 2010.
Boris Bronfentrinker and Nicholas Frey

To read the rest of this article, see Competition Law Journal: [2011], Issue 2,  Articles (link for online subscribers who have already logged in click here).

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