Legal News

Mergers The Commission has been notified of: Macquarie/ Aberdeen/ AIP/ Certain Digi Assets in Spain ( M.11518) (simplified merger procedure) Marubeni/ Certain Parts of Trust Enery ( M.11598) (simplified merger procedure) The Commission has extended its phase II review in IAG/ Air Europa ( M.11109) by 10 working days—see case page Note— For details of all ongoing Commission merger probes, see the EU mergers—ongoing cases tracker Antitrust Judgment dismisses the appeal against the General Court’s ruling awarding DT €1.8m following the Commission’s refusal to pay default interest on an annulled abuse of dominance By way of context, in 2014 the Commission announced fines totalling €38.8m on Slovak Telekom and its parent Deutsche Telekom ( DT) for abuse of dominance in the Slovak market for...

Between CNA... Appellant And (1) CNB (2) CNC [2024] SGCA( I) 2 What are the practical implications of this case? This decision reaffirms the norm of restrained judicial interference in the running of arbitral proceedings. The principle of minimal curial intervention remains the touchstone in the conduct of arbitration in practice. Annulment of an award is a drastic step and will occur only where there are proper and cogent grounds. The court will examine the parties’ behaviour when assessing whether such grounds exist to justify setting aside an award. Here, in declining to set aside the awards, the Court of Appeal found that the obstinate parties had sought to engineer a jurisdictional challenge by executing a separate contract intended to override the initial arbitration agreement. The phrasing of a dispute resolution provision is likewise significant when deciding if it can touch...

The consultancy stated on 6 June 2024 that mid-sized pension schemes have fewer endgame routes than either larger or smaller peers. Hymans Robertson noted that retirement savings arrangements with assets exceeding £250m enjoy broad flexibility, from continuing to operate to releasing surplus to secure partial or full insurance. By contrast, the recently floated public sector consolidator may suit schemes with less than £10m in assets, the firm added. The consolidator’s aim is to bring together a series of smaller, solvent pension schemes within a single fund. However, the 2,600-plus defined benefit plans that sit between these thresholds encounter particular obstacles, the consultancy said, especially where trustees are seeking to transfer their liabilities to an insurer......

Mergers The CMA has commenced its phase I review and issued an invitation to comment regarding the proposed acquisition of PGS ASA by TGS ASA—see the case page for further details. NOTE— For all active mergers before the CMA, please refer to the UK mergers—ongoing cases tracker Antitrust The CMA has revised the timetable for its ongoing investigation into the Atlantic Joint Business Agreement involving American Airlines, members of International Consolidated Airlines Group ( British Airways, Iberia and Aer Lingus), and Finnair, under the Chapter I prohibition in the Competition Act 1998—see the case page for more. NOTE— For all live behavioural investigations before the CMA, see the UK behavioural investigations—ongoing cases tracker Upcoming dates For dates of forthcoming UK competition developments, see the UK Competition calendar......

David Kennedy, 71, remained impassive as Judge Gregory Perrins imposed a period of imprisonment after a brief hearing at Southwark Crown Court in London. In May, the jury found Kennedy guilty on a single charge of defrauding investors in the Axiom Legal Financing Fund, which collapsed in 2012 with debts of £107m. As he delivered sentence, Judge Perrins said Kennedy and a co‑defendant had set up the fund to deceive investors, calling it “rotten to the core”. Prosecutors from the Serious Fraud Office ( SFO) alleged Kennedy pocketed management fees, which were not revealed to investors, by fraudulently diverting Axiom payments that were meant to fund law firms pursuing low‑value, high‑volume litigation. He showed no reaction. The fund’s collapse left debts of £107m......

More than a dozen lawyers have gone on to become prime minister Among them are Clement Attlee, a Labour premier after World War Two, as well as Margaret Thatcher and Tony Blair. Yet Starmer, director of public prosecutions from 2008 to 2013, would rank as one of the most senior legal figures ever to take the keys to Number 10. Two former heads of the Crown Prosecution Service who followed him told Law360 that, if he wins on 4 July 2024, his toughest legal task will be juggling competing priorities for scarce resources across the criminal justice system. Alison Saunders — a partner at Linklaters LLP who succeeded Starmer as DPP in 2013 — said the system should benefit: he understands the issues, has an exceptional legal track record and will surround himself with the right people. Before leading the CPS, Starmer...

Mergers The Commission approved: joint control over Mayakan Pipeline BV by Engie SA and Macquarie Group Limited ( M.11527) following a phase I review—see further, Midday Express joint control over South Fork Wind, LLC and Revolution Wind, LLC by GIP IV Whale Fund Holdings, L. P and Orsted A/ S ( M.11560) after a phase I review—see further, Midday Express The Commission has been notified of: Blackstone/ MDP/ Air Control Holdings ( M.11606) (simplified merger procedure) ICG/ Holding Uriach/ Uriahc/ Inedea ( M.11532) (normal merger procedure) The phase II timetable was extended by ten working days under Article 10(3)2 in IAG/ Air...

Mergers The CMA indicated it may accept undertakings in lieu of a reference regarding the anticipated purchase by Theramex HQ UK Limited of the European rights to Viatris’ Femoston and Duphaston products—see further, case page. Note— For all ongoing mergers before the CMA, see the UK mergers—ongoing cases tracker. Market studies The CMA released the administrative timetable for its market investigation into veterinary services for household pets—see further, case page. Note— For every live market study and market investigation in the UK, see the UK market studies and market investigation references—ongoing cases tracker. Upcoming dates For dates of forthcoming UK competition developments, see the UK Competition calendar......

VT, UR v Conny Gmb H Case C-400/22 What are the practical implications of this case? Traders and consumers using websites to conclude distance contracts should note that the trader’s duty to secure, at the moment of ordering, the consumer’s clear confirmation of a commitment to pay, as required by Article 8(2) of Directive 2011/83/ EU, applies even where payment falls due only once a later condition is met. These consequences carry particular weight for traders that, as in the case before the Court of Justice, operate assignment-based models to advance consumers’ rights, with remuneration owed only if certain triggers occur—for example, a wholly or partly successful assertion of rights, or another formal step towards that result. Although the matter arises from a specific national context in which a trader offers to pursue tenancy-related entitlements, the knock-on effects are broader and touch any set-up where traders invite...

Foreign Subsidies Regulation Commission opens first in-depth merger inquiry under the Foreign Subsidies Regulation The Commission said it has opened a new in-depth probe under the Foreign Subsidies Regulation ( FSR) into Emirates Telecommunications Group Company PJSC’s (e&) proposed deal to ultimately acquire sole control of PPF Telecom Group BV ( PPF), excluding its Czech business ( FS.100011). Based in the UAE, e& is a State-controlled telecoms operator. PPF, based in Czechia, runs telecommunications services across Czechia, Bulgaria, Hungary, Serbia ( Yettel) and Slovakia ( O2). The FSR clearly sets out rules, including notification duties (applicable since 12 October 2023), aimed at tackling distortions stemming from foreign subsidies, for certain concentrations and for participation in public procurement procedures involving foreign financial contributions......

The Organisation for Economic Co-operation and Development has released additional guidance, and later than initially anticipated, on how companies and tax administrations should apply the 15% global minimum levy, known as Pillar Two, according to Gerassimos Thomas, the Commission’s director-general for taxation. As a result, it would be too early for the EU to advance its plan to roll out a common method for determining the tax base of corporate groups throughout the bloc, called Business in Europe: Framework for Income Taxation, Thomas told Law360. ' If we were to adopt BEFIT now and the OECD Pillar Two guidance shifts, that would be counterintuitive', he said following an event at the Bruegel think tank in Brussels......

The exchange informed the Competition Appeal Tribunal ( CAT) that holders of the bitcoin-derived token cannot recover substantial compensation because they did not limit their losses by disposing of the asset when Binance and other platforms removed it. Brian Kennelly KC of Blackstone Chambers, for Binance, contended that BSV investors were obliged to sell and move into similar cryptocurrencies once delisted in 2019, and that by failing to do so they added to their own loss. ‘ Their loss crystallised when they could reasonably have sold the BSV and re-entered the market; instead, they chose to keep hold of BSV beyond that point,’ he said. ‘ The causal chain is severed and, we say, the decision was wholly voluntary and not prompted by the proposed defendants.’ Binance, together with exchanges — Bittylicious, Kraken and Shapeshift — are contesting allegations that, by delisting BSV, they caused about 240,000 UK...

US District Judge Lorna G. Schofield – 4 June 2024 On 4 June 2024, Judge Lorna G. Schofield directed New York‑headquartered Ui Path Inc to submit, by 18 June, a proposed judgment aligned with her opinion. She observed that respondent Shanghai Yunkuo Information Technology Co, trading as Encoo Tech, took part in the arbitration yet has not appeared in the court action and did not oppose Ui Path’s petition to confirm the arbitration. The judge recorded that the respondent engaged in the arbitration for two years, including a multi‑day evidentiary hearing in Manhattan. On 10 May 2023, the arbitrator issued a partial award on the merits, ruling in favour of the petitioner on both the breach claim and the misappropriation and related claims. As set out in the 4 June 2024 opinion and order, the partial arbitral award determined that Encoo had violated its...

R (on the application of Cambrian Offshore South West Ltd) v Norfolk County Council [2024] EWHC 1042 ( Admin) What are the practical implications of this case? Procurement professionals should remain constantly vigilant to identify and address potential conflicts of interest, both internally and within external bodies. They must apply robust procurement best practice, together with suitable audit measures and financial prudence, so that public funds are correctly and appropriately accounted for. The decision also assists those advising private contractors, underscoring the need to manage conflicts of interest properly within organisations to avoid non-recovery... What was the background? The project was supported by the European Regional Development Fund and governed by EU Regulation No 1303/2013. Norfolk County Council ( NCC) acted as the Managing Authority for the Programme, and the interested party ( OREC Ltd) was the Programme’s Lead Partner, contracting with 18 Project Partners. Cambrian...

After two days of deliberation, a 12-strong jury returned a unanimous decision acquitting both men of conspiring to commit wire fraud and of 15 associated wire fraud counts. Prosecutors had linked the alleged fraud to particular Autonomy emails, press releases and earnings reports, as well as to due diligence conference calls between Autonomy leaders and HP counterparts in the months before the takeover. The felony conspiracy and fraud allegations each carried potential sentences exceeding 20 years. The 6 June 2024 verdict closes an eleven-week trial centred on claims that Lynch and Chamberlain, alongside colleagues at the British software firm, misled HP—formerly Hewlett Packard—about Autonomy’s operations and financial condition ahead of the Silicon Valley giant’s 2011 purchase of the company for US$11.7bn. As the decision was delivered, Lynch briefly covered his face and eyes before his wife hurried over to hug him....

Burke and others v Peabody Construction Ltd [2024] EWHC 392 ( Ch) What are the practical implications of this case? The judgment confirmed and reinforced the principle that, in almost all cases, a nominee will only be held responsible for the costs of a voluntary arrangement that is later set aside for unfair prejudice or material irregularity where there is a discernible element of serious personal misconduct by the nominee. What was the background? Two creditors of a company that was in a CVA (‘the Company’) commenced proceedings against the Company to contest the CVA, alleging unfair prejudice and material irregularities in respect of the CVA......

Latest REUL reform SIs laid for sifting The SI below was presented for sifting on 22 May 2024: Companies Act 2006 ( Recognition of Third Country Qualifications and Practical Training) ( Amendment) Regulations 2024 A full list of all proposed negative procedure SIs under REUL( RR) A 2023 is accessible here. Sifting process for proposed negative procedure SIs introduced under REUL( RR) A 2023 REUL( RR) A 2023 provides a set of delegated powers enabling the government and devolved administrations to bring forward SIs to amend assimilated law. The principal legislative powers are contained in REUL( RR) A 2023, ss 11–16. The key procedural requirements (including parliamentary scrutiny arrangements) applicable to these instruments are set out in REUL( RR) A 2023, s 20 and Schs 4–5. Where the government intends to bring forward SIs......

The Bill passed two years after the government first unveiled the reforms, and over a year after it was brought before Parliament. The legislation is set to take effect in the autumn. The DMCC Act 2024 ( DMCCA 2024) ushers in the most far-reaching overhaul of competition and consumer protection rules since merger control was introduced over 20 years ago. Broad in scope, the DMCCA 2024 delivers major updates to digital markets, merger control and antitrust provisions, along with consumer law. We outline some of the principal points below. The strategic market status regime A central feature of the DMCCA 2024 is the creation of the strategic market status, or SMS, regime. Although the regime drew significant debate during its passage through Parliament, the core features have remained unchanged since the Bill was introduced......

At the High Court, Judge Andrew Henshaw determined that six actions brought by lessors and Ukrainian airlines against their insurers belong in the Ukrainian courts, finding no compelling justification to keep them in London. He concluded that the insurance policies’ exclusive jurisdiction provisions must be observed, holding them binding on the claimants, effective and applicable to every cause of action. He further found no sufficient reasons to permit the proceedings to continue in this jurisdiction. The claimants contended that the leases did not stipulate any governing court or law for the underlying insurance or reinsurance arrangements. The insurers, however, maintained—per the judgment—that the lessors and airlines had the chance to shape the manner in which the aircraft were insured and reinsured, yet did not insist on any forum for disputes. Judge Henshaw additionally held that the clauses remain enforceable even though they do not...

The Upper Tribunal, in a decision released on 5 June 2024, recorded that the seller of the investment, SAAD Investments Co Ltd, was unaware of the buyer, Burlington Loan Management DAC, until well into the deal. It said SAAD could not have anticipated Burlington would exploit the treaty to reduce its tax, thereby misusing the treaty. The Upper Tribunal also held that the lower court made no error of law when assessing Burlington’s motives for acquiring the debt and finding that benefiting from the tax treaty was not its main aim. The ruling notes that, in 2018, Burlington received an assignment of a debt claim from SAAD, a company based in the Cayman Islands, according to the decision......