Business Law

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BUSINESS LAW
( TASK 3 )

INTRODUCTION
Case 1
 This deals with the chapter 1 -Prohibition
of the Competition Act 1998.
 Infringement of the competition law civil
cartels.

Mercedes-Benz
 Mercedes-Benz was engaged in the distribution of
commercial vehicles.
 A formal investigation was initiated as it resulted in
the breach of the competition act in the cartels
(Graham, 2016).

Statutory Time Table
Phase 1 Date Action
1 January 2010 Case opened
28 June 2012 OFT issued statement
21 February 2013 Infringement announced
27 March 2013 Case closed

Findings
 It was found out that OFT launched a
formal investigation against Mercedes
Benz and its 5 dealers in the north region.
 They were engaged in the infringement of
the competitin law.

Final Decision
 Competition and Markets Authority
announced that Mercedes Benz and the
five dealers agreed to pay the fine of £2.8
Million.

INTRODUCTION
Case 2
 This law has been enacted to stop the
anti- competitive practices which are
prevailing the the market (Rodger, 2015).
 As we know competition is necessary for
the sustainable developement of the
market and helps consumers in increasing
their reach as well as their choice.

JD Sports/ Go Outdoors
Merger Inquiry
 JD Sports acquired the Go Outdoors
Topco Limited
 Due to which both the parties will cease to
exist as separate entities.

Continued..
 As the case involved the creation of
merger situation under Enterprise Act
2002.
 The case was refered to Competition and
Markets Authority (CMA).

Statutory Time Table
Phase 1 Date Action
 18 May 2017  Decision announced
 20 March to 3 April 2017  Invitation to comment
 20 March 2017  Launch of merger inquiry
 22 December 2016  Initial enforcement order

Findings
 This may result in the reduction of the
choice in the UK market.
 Both the entities will fail to retain their
position as separate entities.

Final Decision
 The CMA granted the approval for a tie up
between sports retailer JD Sports and
outdoor brand Go Outdoors.
 This was agreed for a sum of £112m.
 This may result in increase of the
consumer base for the merged
organization.

REFERENCES
 Whish, R. and Bailey, D., 2015. Competition law.
Oxford University Press, USA.
 Graham, C., 2016. UK: The Concurrent Enforcement
by Regulators of Competition Law and Sector-
Specific Regulation. Journal of European
Competition Law & Practice, p.lpw016.
 Rodger, B.J., 2015. The Consumer Rights Act 2015
and collective redress for competition law
infringements in the UK: a class act?. Journal of
Antitrust Enforcement. 3(2). pp.258-286.