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UK competition law round-up: Cabo v MGA causation appeal, CMA civil engineering market study interim, Government to reverse PACCAR on litigation funding, CMA merger and subsidy control updates

Published on: 17 December 2025

Published by a LexisNexis Competition expert
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Article summary

Antitrust Court of Appeal refuses permission to appeal High Court judgment dismissing competition damages claim against MGA for lack of causation

The Court of Appeal issued its judgment in Cabo Concepts Limited and another v MGA Entertainment (UK) Limited and another, on an application by Cabo Concepts Limited (Cabo) for permission to appeal against a High Court order that had dismissed its action against MGA Entertainment (MGA). The High Court had dismissed the competition damages claim for lack of causation.

Background

MGA is a leading toy manufacturer. In 2017, Cabo introduced its Worldeez collectable toy range, presenting it as a travel‑themed alternative to MGA’s hugely successful LOL Surprise! brand. Having approached UK retailers, Cabo struggled to obtain meaningful orders from them. It subsequently alleged that MGA had undermined the launch by asserting that the Worldeez globe design infringed LOL Surprise! and by threatening to withdraw supply from retailers who chose to stock it. Worldeez did not succeed commercially and was discontinued in 2018. In 2020, Cabo commenced a claim for damages against MAG...

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