Facebook, Inc. & Anor v The Competition And Markets Authority [2021] EWCA Civ 701 (13 May 2021)

Facebook, Inc. & Anor v The Competition And Markets Authority [2021] EWCA Civ 701 (13 May 2021)

The Tribunal correctly interpreted 'pre-emptive action' under the Enterprise Act 2002 as encompassing actions by merging parties that might prejudice the reference or impede justified remedial action, including those affecting the competitive structure of the market during investigation. The CMA's Initial...

Source-derived case information.

Citation
[2021] EWCA Civ 701
Parties
Applicant/appellant: Facebook, Inc.; Applicant/appellant: Facebook UK Limited; Respondent: Competition and Markets Authority
Jurisdiction
England and Wales
Judgment Date
13 May 2021
Procedural Posture
Appeal / Judgment on Appeal From Competition Appeal Tribunal
Outcome
appeal dismissed
Legal Topics
Statutory Interpretation, Interim Enforcement Orders, Pre Emptive Action, Proportionality, Rationality, Remedies in Merger Investigations
Competition Law Merger Control Administrative Law Statutory Interpretation Interim Enforcement Orders Pre Emptive Action Proportionality Rationality +1 more

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Parties

Facebook, Inc.

Applicant/appellant

Facebook UK Limited

Applicant/appellant

Competition and Markets Authority

Respondent

Procedural Posture

Appeal / Judgment on Appeal From Competition Appeal Tribunal

  1. 1 Statutory meaning of 'pre-emptive action' under Enterprise Act 2002
  2. 2 Scope of CMA's powers in Initial Enforcement Orders
  3. 3 Proportionality and rationality of CMA's information requests

Ratio Decidendi

The Tribunal correctly interpreted 'pre-emptive action' under the Enterprise Act 2002 as encompassing actions by merging parties that might prejudice the reference or impede justified remedial action, including those affecting the competitive structure of the market during investigation. The CMA's Initial Enforcement Order and information requests were rational, proportionate, and within statutory powers. Facebook's failure to engage constructively justified refusal of derogations.

Court Disposition

appeal dismissed

Orders

  • Facebook's appeal is dismissed.
  • Tribunal's judgment is upheld.