The competition watchdog has won a legal challenge against the Competition Appeal Tribunal (CAT) over domestic search warrants for an alleged cartel investigation.
The Competition and Market Authority (CMA) took a judicial review to the High Court against the Tribunal after it refused to grant the regulator permission for warrants as part of an investigation into a cartel.
The regulator opened an investigation last October into suspected anti-competitive conduct in relation to the supply of chemicals for use in the construction industry.
The CMA sought three warrants to search business premises occupied by the two unnamed parties (two were in England and one in Scotland). It also sought a warrant to search domestic premises in Scotland occupied by a third unnamed party.
While the CAT granted warrants authorising the CMA to search three business premises in England and Scotland, it refused the warrant regarding the domestic property. The person whose property the CMA wants to raid, is subject to an anonymity order and therefore cannot be named.
According to a statement from the regulator on Monday, it was concerned that the CAT’s decision would damage its ability to gather the necessary evidence to effectively investigate and enforce against secret cartels.
The CMA was also concerned with “the CAT’s indication that the warrants judgment was a guideline case to be followed in the future”.
However, the High Court ruled in favour of the CMA on Monday on all three grounds of its judicial review.
Commenting on the decision, the CMA’s chief executive, Sarah Cardell welcomed the “important ruling”.
She stated that “the original judgment by the Competition Appeal Tribunal risked seriously undermining our ability to enforce effectively against illegal cartels.”
“With the increase in remote-working – and electronic communication – it’s essential that we are able to search domestic premises to secure evidence of potential breaches of competition law where appropriate to do so,” Cardell added.