Truck manufacturers who were found liable to Royal Mail and BT for overcharging due to the operation of a cartel are today appealing against the Competition Appeal Tribunal's ruling in the landmark case. 

The appellants, known collectively as DAF, appeal the entirety of this year's order against the group which requires DAF to pay Royal Mail over £15m in respects of overcharging losses and more than £19m for financing losses.

The second CAT order, made on the same day, ordered DAF to pay damages for the overcharge losses to BT totalling £1.9m and interest of £1.4m.

The CAT’s decisions in Royal Mail Group Limited v DAF Trucks Limited & Ors and BT Group PLC & Ors v DAF Trucks Limited & Ors are the first competition damages cases to reach a final quantum judgment.

Judges in the CAT found in favour of Royal Mail and BT, finding that DAF was liable for the overcharge, which  assessed at 5% for both Royal Mail and BT on their value of commerce over the relevant period. Royal Mail and BT claimed they were overcharged for vehicles leased and bought from DAF. The CAT upheld that an overcharge existed. 

DAF’s argument that Royal Mail and BT passed on their losses was rejected.

The tribunal’s decision was one of the first successful follow-on damages claim following the European Commission’s finding that five truck manufacturers were part of a cartel and colluded on truck pricing for 14 years. They were fined more than £2bn.

The Court of Appeal hearing, before Sir Julian Flaux, Lord Justice Newey and Lord Justice Green, is listed for three days.

 

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