The Competition Appeal Tribunal (CAT) has delivered (14 January) its first outright refusal to certify a collective action, marking a pivotal moment in UK competition law.
The case, led by Professor Christine Riefa against Apple and Amazon, alleged anti-competitive agreements impacting sales of Apple products on Amazon Marketplace. However, the Tribunal found the class representative unsuitable, citing a lack of understanding of the funding arrangements and failure to ensure independent representation of class members.
The Tribunal raised significant concerns, including a funding agreement prioritizing funder and solicitor payments over consumer compensation. Professor Riefa’s inability to explain the funding terms, coupled with her dependency on legal advisors, led to the Tribunal’s decision.
This judgment highlights increasing scrutiny on class representatives and signals a shift in the CAT’s approach to collective proceedings, following years of a more permissive regime. The ruling sets a precedent for stricter adherence to standards, ensuring class representatives can robustly and independently advocate for class interests.
Key Takeaways:
- This marks the CAT’s first outright refusal to certify a class action.
- The case involved alleged restrictive agreements between Apple and Amazon.
- The Tribunal’s decision reflects stricter scrutiny on class representative suitability and funding arrangements.
