Arriva the Shires Ltd v London Luton Airport Operations Ltd

Arriva the Shires Ltd v London Luton Airport Operations Ltd

The grant of a seven-year exclusive concession, right of first refusal, and discriminatory carve-out for easyBus by Luton Operations, a dominant undertaking, seriously distorted competition between coach operators at Luton Airport. There was no objective justification for these restrictions, as the Bus Station had...

Source-derived case information.

Parties
Claimant: Arriva The Shires Ltd; Defendant: London Luton Airport Operations Ltd
Jurisdiction
England and Wales
Judgment Date
28 January 2014
Procedural Posture
Competition Law Private Action / Judgment on Liability
Outcome
Claim partially succeeds; abuse of dominance found in the terms of the New Concession, not in the tender process.
Legal Topics
Abuse of Dominant Position, Exclusive Concessions, Discriminatory Practices, Objective Justification, Distortion of Competition
Competition Law Abuse of Dominant Position Exclusive Concessions Discriminatory Practices Objective Justification Distortion of Competition

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Parties

Arriva The Shires Ltd

Claimant

London Luton Airport Operations Ltd

Defendant

Procedural Posture

Competition Law Private Action / Judgment on Liability

Legal Issues

  1. 1 Whether the tender process for the Airport–Victoria coach service concession was conducted in an abusive manner by a dominant undertaking
  2. 2 Whether the terms of the New Concession (exclusivity, right of first refusal, discrimination in favour of easyBus) constitute an abuse of dominance under section 18 of the Competition Act 1998
  3. 3 Whether there is objective justification for the exclusivity and related terms in the New Concession

Ratio Decidendi

The grant of a seven-year exclusive concession, right of first refusal, and discriminatory carve-out for easyBus by Luton Operations, a dominant undertaking, seriously distorted competition between coach operators at Luton Airport. There was no objective justification for these restrictions, as the Bus Station had capacity for additional services and the justifications advanced were not the true reasons for the exclusivity. The tender process itself was not abusive, but the terms of the New Concession were an abuse of dominance under section 18 of the Competition Act 1998.

Court Disposition

Claim partially succeeds; abuse of dominance found in the terms of the New Concession, not in the tender process.

Orders

  • Declaration that the terms of the New Concession constitute an abuse of dominance under section 18 of the Competition Act 1998
  • Further directions to be given regarding remedies, quantum of damages, and any injunction