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15 March 2024 / Philip Gardner , Abbie Melvin
Issue: 8063 / Categories: Features , International , Competition , Jurisdiction , Fraud
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Extraterritorial powers for the CMA?

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Can the CMA compel overseas companies to provide information? Philip Gardner & Abbie Melvin explore the recent case law
  • Covers case law on the Competition and Markets Authority’s powers to compel information from overseas companies under s 26, Competition Act 1998.
  • The Court of Appeal recently held the CMA has authority to compel responses from companies with no territorial connection to the UK.
  • Competition lawyers are waiting to hear if the case will be appealed to the Supreme Court.

In January, the Court of Appeal allowed the Competition and Markets Authority’s (CMA’s) appeal against a decision that had denied it the ability to compel, by way of notice under s 26 of the Competition Act 1998 (CA 1998, ‘the Act’), responses to information requests from companies with no territorial connection to the UK, despite having UK-incorporated subsidiaries, in Competition and Markets Authority v Rex on the application of Volkswagen Aktiengesellschaft [2024] EWCA Civ 1506.

Given the apparent similarities to the decision in R (on the application of

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NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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