National Grid Plc v Gas & Electricity Markets Authority & Ors

National Grid Plc v Gas & Electricity Markets Authority & Ors

The Legacy MSAs imposed by National Grid constituted an abuse of dominant position as they had a foreclosure effect, discouraging gas suppliers from switching to competing meter operators, and the early replacement charges were disproportionate to the legitimate protection of sunk costs. The penalty imposed by the Tribunal was excessive given the Authority's involvement and the novelty of the case; a reduced penalty was appropriate.

Parties
Appellant: National Grid plc; First Respondent: Gas and Electricity Markets Authority; Second Respondent: Capital Meters Limited; Third Respondent: Siemens PLC; Fourth Respondent: Meter Fit (North East) Limited; Fifth Respondent: Meter Fit (North West) Limited
Jurisdiction
England and Wales
Judgment Date
23 February 2010
Procedural Posture
Civil Appeal / Appeal From Competition Appeal Tribunal
Outcome
Appeal against finding of abuse dismissed; appeal against penalty allowed in part
Legal Topics
Abuse of Dominant Position, Anti Competitive Agreements, Financial Penalties, Market Foreclosure
Competition Law Regulatory Law Abuse of Dominant Position Anti Competitive Agreements Financial Penalties Market Foreclosure

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

National Grid plc

Appellant

Gas and Electricity Markets Authority

First Respondent

Capital Meters Limited

Second Respondent

Siemens PLC

Third Respondent

Meter Fit (North East) Limited

Fourth Respondent

Meter Fit (North West) Limited

Fifth Respondent

Procedural Posture

Civil Appeal / Appeal From Competition Appeal Tribunal

Legal Issues

  1. 1 Whether National Grid abused its dominant position in the market for domestic-sized gas meters contrary to section 18 of the Competition Act 1998 and Article 82 EC Treaty (now Article 102 TFEU)
  2. 2 Whether the penalty imposed was manifestly excessive or wrong in principle

Ratio Decidendi

The Legacy MSAs imposed by National Grid constituted an abuse of dominant position as they had a foreclosure effect, discouraging gas suppliers from switching to competing meter operators, and the early replacement charges were disproportionate to the legitimate protection of sunk costs. The penalty imposed by the Tribunal was excessive given the Authority's involvement and the novelty of the case; a reduced penalty was appropriate.

Court Disposition

Appeal against finding of abuse dismissed; appeal against penalty allowed in part

Orders

  • Fine reduced from £30 million to £15 million