English Court of Appeal Rules Cartel Fines Are Not Recoverable From Ex-Employees

(by Andreas Stephan) It is disappointing, but understandable under the current law, that a potentially powerful deterrent to cartelists has been struck down before it could have an effect.  The Appeal Court ruling blocks British supermarket Morrisons from suing former employees of Safeway Group (acquired by Morrisons in 2004) in relation to cartel fines imposed for the price fixing of dairy products in 2002-3. The Court of Appeal stressed that the Competition Act 1998 relates to the firm and not individuals.  The long standing principle is that a claimant cannot recover damages for the consequences of his own (unlawful) acts.

Do Competition Authorities Really Want Antitrust Compliance?

(by Andreas Stephan) In a CCP seminar and ensuing discussion led by two internationally recognised compliance experts, serious questions were asked about the approach some competition authorities take to organisational compliance. The incentives currently posed by enforcement policy may actually discourage compliance and reflect fundamental misconceptions about the drivers of effective compliance within the firm.