Dahabshiil Transfer Services Ltd. v Barclays Bank Plc [2013] EWHC 3379 (Ch) (05 November 2013)

Dahabshiil Transfer Services Ltd. v Barclays Bank Plc [2013] EWHC 3379 (Ch) (05 November 2013)

There is a serious issue to be tried as to whether Barclays holds a dominant position in the market for banking services to money remitters in the UK and whether its withdrawal of services from Dahabshiil constitutes an abuse of that position. However, for Harada and BCG, there is insufficient evidence of Barclays' dominance in the wider MSB market. The balance of convenience and risk of irremediable harm justify granting interim relief to Dahabshiil only, not to Harada and BCG.

Citation
[2013] EWHC 3379 (Ch)
Parties
Claimant/applicant: Dahabshiil Transfer Services Limited; Claimant/applicant: Harada Limited; Claimant/applicant: Berkeley Credit and Guarantee Limited; Defendant/respondent: Barclays Bank PLC
Jurisdiction
England and Wales
Judgment Date
05 November 2013
Procedural Posture
Application for Interim Injunction / Interlocutory (application for Interim Relief Pending Trial)
Outcome
Interim injunction granted in favour of Dahabshiil; refused for Harada and BCG.
Legal Topics
Abuse of Dominant Position, Interim Injunctions, Banking Services Termination, Article 102 TFEU, Competition Act 1998 S.18
Competition Law Banking Law Abuse of Dominant Position Interim Injunctions Banking Services Termination Article 102 TFEU Competition Act 1998 S.18

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Parties

Dahabshiil Transfer Services Limited

Claimant/applicant

Harada Limited

Claimant/applicant

Berkeley Credit and Guarantee Limited

Claimant/applicant

Barclays Bank PLC

Defendant/respondent

Procedural Posture

Application for Interim Injunction / Interlocutory (application for Interim Relief Pending Trial)

Legal Issues

  1. 1 Whether Barclays holds a dominant position in the relevant market for banking services to money service businesses (MSBs) or money remitters in the UK
  2. 2 Whether Barclays' termination of banking services constitutes an abuse of dominant position under Article 102 TFEU and Competition Act 1998 s.18
  3. 3 Whether the claimants meet the threshold for interim injunctive relief

Ratio Decidendi

There is a serious issue to be tried as to whether Barclays holds a dominant position in the market for banking services to money remitters in the UK and whether its withdrawal of services from Dahabshiil constitutes an abuse of that position. However, for Harada and BCG, there is insufficient evidence of Barclays' dominance in the wider MSB market. The balance of convenience and risk of irremediable harm justify granting interim relief to Dahabshiil only, not to Harada and BCG.

Court Disposition

Interim injunction granted in favour of Dahabshiil; refused for Harada and BCG.

Orders

  • Barclays is restrained from terminating banking services to Dahabshiil Transfer Services Limited pending trial or further order.
  • No interim relief is granted to Harada Limited or Berkeley Credit and Guarantee Limited.