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United Kingdom

UK and EU competition update: MGA dominance abuse and unjustified patent threats; no damages; CMA procedural guidance; AG on Damages Directive; defence antitrust guidance; revised State aid internal review

Published on: 19 June 2025

Published by a LexisNexis Competition expert
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UK private actions

High Court dismisses toy manufacturer’s damages claim but finds MGA abused dominant position and made unjustified patent threats

The High Court handed down its ruling in Cabo Concepts Ltd & Licence World Ltd v MGA Entertainment (UK) Ltd & MGA Entertainment, Inc [2025] EWHC 1451 (Ch), a damages action brought by Cabo contending that a competing toy maker violated competition rules and issued baseless patent infringement threats to block the debut of a rival product. The court concluded MGA Entertainment had abused a dominant position and had made unwarranted patent infringement threats connected to Cabo ‘Worldeez’ toy launch. It nevertheless threw out Cabo’s damages claim because Cabo could not demonstrate it would have traded at a profit but for MGA’s behaviour. The court did, however, grant declaratory relief regarding the threats. Background In 2017, Cabo Concepts Limited (Cabo), a toy start-up, introduced Worldeez, a collectable toy line themed around global travel, sold in a plastic capsule styled as a globe. Packaging resembled a globe by design...

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