Simmons snares first win in competition challenge

Simmons & Simmons is celebrating its work for Interbrew - the Belgian brewer best known for Stella Artois lager - in mounting the first successful challenge to a Competition Commission report.However, the firm's head of litigation, Philip Vaughan, conceded that he would like to have won on more legal points than the one narrow error by the commission which means that the decision must be reconsidered by the Secretary of State for Trade and Industry.Recognising that the merger of Interbrew with the brewing interests of Bass raised competition issues, Interbrew proposed divesting Whitbread Brewing Company (WBC) and the rights to brew and sell Stella Artois in the UK.

The commission said this was not an effective remedy and Interbrew should be ordered to divest Bass Brewers, which makes Carling and Tennant's lager.Mr Justice Moses upheld the challenge on procedural grounds, saying the commission had acted unfairly in failing to give Interbrew an opportunity to comment on whether its position as owner of Bass Brewers, while being the licensor of Stella Artois to WBC, would inhibit competition were it required to divest WBC.While conceding that the judge had not faulted the commission's logic, Mr Vaughan said the judge 'didn't think they'd investigated all the facts'.

Competition Commission chairman Dr Derek Morris said he was pleased the judges had supported its report on all matters of substance, 'and on all but one point'.Mr Vaughan said it did not matter that Interbrew had won on a narrow point.

'Interbrew is now in a position to put forward remedies which don't mean selling Bass or Whitbread in their entirety,' he said.Around a dozen such challenges have failed in the past.

'I'm not sure it does have precedent value but it shows that when something goes wrong in the procedure, it can make a difference,' he added.Neil Rose