The value of UK class actions launched against companies for breaches of competition law has risen by more than six-fold in the past year, according to research showing that England is becoming the destination of choice for such claims. 

According to the study published today by Thomson Reuters, claims worth over £26bn were begun in 2022, up from £4bn in 2021. Eight UK class action claims related to breaches of competition law have been launched in the past year, up from six in the previous year.

The rise in class actions filed suggests the UK is becoming the destination of choice for competition-related class actions, the report states. A major reason for this is the precedent of Merrick, which the Supreme Court has allowed to proceed on an opt-out basis.

The increase in class action competition claims is nearly all due to the technology and digital sectors, which accounted for 10 of the 14 applications for claims in the past two years.

Litigation funders are particularly keen to fund these kinds of cases, partly because of the value of the claims, the report says. Traditionally they have concentrated on claims where liability has already been established by a European Commission case. However claims without any preceding competition authority decision, which means that claimants must establish liability, are now receiving funding.

Warsha Kalé, competition editor at Thomson Reuters, said: 'Litigation funders have plenty of dry powder to deploy, adding a whole new level of risk for corporates who activity strays over the line and can be shown to breach competition law.'

 

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