“Pursuant to the principle of sincere cooperation, the Union and the Member States shall, in full mutual respect, assist each other in carrying out tasks which flow from the Treaties. The Member States shall take any appropriate measure, general or particular, to ensure fulfilment of the obligations arising out of the Treaties or resulting from the acts of the institutions of the Union. The Member States shall facilitate the achievement of the Union’s tasks and refrain from any measure which could jeopardise the attainment of the Union’s objectives.”
“24. At one stage counsel for Areva submitted that the terms of paragraph 58 of the ECJ's judgment in Masterfoods required the national court to abstain from any further proceedings in the action save any which could properly be described as "interim measures to safeguard the interests of the parties pending final judgment". He submitted that any requirement for service of defences, disclosure of documents or other normal interlocutory steps in preparation for a trial were outside the scope of what the ECJ considered to be permissible. I reject that submission. First, the terms of paragraphs 55 and 57 show that it is for the national courts to decide when to stay its proceedings. The object is to avoid any decision running counter to that of the Commission or the community courts. Paragraph 58 deals only with the position when the national court has stayed the proceedings. It says nothing about the obligations of the national courts before that stay has become effective. Indeed it would be contrary to the very division of functions to which the ECJ referred in paragraphs 47 to 49 to conclude that it had the jurisdiction to interfere with the procedures of the national courts in areas where there was no risk of conflicting decisions. Given that objective it is for the national court to consider, in accordance with its own procedures, how best to achieve it. ”
“Control shall be constituted by rights, contracts or any other means which, either separately or in combination and having regard to the considerations of fact or law involved, confer the possibility of exercising decisive influence on an undertaking...”
“(2) A concentration which would not significantly impede effective competition in the common market or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position, shall be declared compatible with the common market. (3) A concentration which would significantly impede effective competition, in the common market or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position, shall be declared incompatible with the common market.”
“No Member State shall apply its national legislation on competition to any concentration that has a Community dimension.”
“(1) The OFT shall, subject to subsections (2) and (3), make a reference to the Commission if the OFT believes that it is or may be the case that— (a) a relevant merger situation has been created; and (b) the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
“(1) For the purposes of this Part any two enterprises cease to be distinct enterprises if they are brought under common ownership or common control... (3) A person or group of persons able, directly or indirectly, to control or materially to influence the policy of a body corporate, or the policy of any person in carrying on an enterprise but without having a controlling interest in that body corporate or in that enterprise may, for the purpose of subsections (1) and (2), be treated as having control of it.”
“(1) The [Competition] Commission shall prepare and publish its report under section 38 within the period of 24 weeks beginning with the date of the reference concerned... (3) The [Competition] Commission may extend, by no more than 8 weeks, the period within which a report under section 38 is to be prepared and published if it considers that there are special reasons why the report cannot be prepared and published within that period. (4) The [Competition] Commission may extend the period within which a report under section 38 is to be prepared and published if it considers that a relevant person has failed (whether with or without a reasonable excuse) to comply with any requirement of a notice under section 109...”
“(1) Any person aggrieved by a decision of... the [Competition] Commmission ... in connection with a reference... in relation to a relevant merger situation ... may apply to the Competition Appeal Tribunal for a review of that decision. … (4) In determining such an application the Competition Appeal Tribunal shall apply the same principles as would be applied by a court on an application for judicial review. … (6) An appeal lies on any point of law arising from a decision of the Competition Appeal Tribunal under this section to the [Court of Appeal]...”
“(1) The jurisdiction of the EC in relation to Ryanair’s proposed takeover of Aer Lingus under the Merger Regulation terminated on its Interim Measures Decision made on11 October 2007 with the consequence that thenceforth Article 21 ceased to apply. (2) Although the duty of sincere cooperation continued, because of the rights of appeal available to both Ryanair and Aer Lingus, and was the only European law constraint on OFT, it did not preclude OFT from making a reference under EA s.22 of Ryanair’s proposed takeover of Aer Lingus to the Competition Commission as the risk of conflict did not arise at that stage. (3) Section 122(4) does not apply because for either or both the preceding reasons there was nothing to preclude OFT making the necessary reference within the four month period. (4) The submissions for Ryanair are to be preferred because the consequence will be that OFT will have power to take any necessary interim steps; by contrast neither national authorities nor the Commission will enjoy such powers if the contrary submission is accepted.”
“37. … [C]ounsel for OFT and for Aer Lingus … contend that the duty of sincere cooperation must extend to avoiding any risk of a clash of jurisdictions, not only inconsistent final conclusions. They contend that the submissions for Ryanair take too limited a view of what the duty of sincere cooperation requires. They support the reasoning and conclusions of CAT. 38. It is, in my view, clear that both ECMR [viz. the Merger Regulation] and the Enterprise Act confer extensive powers of investigation on, respectively, the Commission and the OFT and Competition Commission both before and after a notification or reference is made. Although not looking for quite the same thing, those respective bodies would be investigating the same events. The definition of a ‘concentration having a community dimension’ contained in ECMR, for which the Commission would be looking, is not the same as a ‘merger situation’ as defined in the Enterprise Act which would concern OFT. Accordingly, there could be no question of the conclusions of one being adopted without further enquiry by the other. There is, however, considerable overlap in the exercise of the two jurisdictions. The processes of an OFT investigation with a view to possible referral to the Competition Commission, and of any enquiry by that Commission before its decision are, in both cases, intensive. They are likely to involve extensive gathering of information from third parties as well as from the companies directly concerned, working papers submitted for comment, oral hearings, and detailed examination of the internal workings of the companies. They may involve proposals as to remedies and oral hearings directed to enquiring into them. The ‘Issues Paper’ which has now been provided by OFT to Ryanair in the present case is an example. There is no occasion here to publish its detailed contents, but it runs to 224 paragraphs and traverses such matters as shareholder voting patterns, capitalisation, the Articles of Association and restrictions on airport slot disposal, the catchment areas of airports, route comparisons, competition and efficiency incentives and the level of present or anticipated co-ordination. All this is under intensive investigation, and preliminary views are being expressed, before there is even a reference to the Competition Commission, let alone an enquiry by it. It is, to my mind, self-evident that concurrent investigations in the UK and in Europe would be both oppressive and mutually destructive. I accept, therefore, that the duty of sincere cooperation does go beyond avoiding inconsistent decisions and extends to overlapping jurisdictions. 39. Counsel for OFT and Aer Lingus also rely on the provisions of the Enterprise Act to which I have referred. They point out that they lay down a strict timetable from initial reference to final conclusion without any power comparable to that of a court to stay proceedings at any stage if it thinks fit. There is no point short of a decision by the Competition Commission at which the process could be halted in the manner suggested by Ryanair. Moreover by then the exercise of UK jurisdiction over matters which will also be directly relevant in Europe, if jurisdiction there be established, has in any event been extensive. For this reason, if no others, the three cases relied on by counsel for Ryanair are distinguishable. The response of the latter is to suggest that the provisions of the Enterprise Act imposing a timetable should be ‘read down’ unders.2(1) European Communities Act 1972 as “subject to the requirements of EU law” and if that is not sufficient disapplied altogether under Factortame. The riposte of counsel for OFT and Aer Lingus is to point out that s.122(4) is the mechanism provided by Parliament for resolving potential clashes of jurisdiction or inconsistent decision. In those circumstances, so they contend, there is no occasion to read down or disapply any provision of the Enterprise Act. 40. I prefer the submissions of counsel for OFT and Aer Lingus. If the appeals of either or both Ryanair or Aer Lingus had succeeded there would have been an immediate clash of jurisdictions. The success of the Ryanair appeal would, on any view, have confirmed the application of Article 21 so that all steps taken by the OFT and Competition Commission under the reference assumed to have been made by OFT in the period the appeal was pending would have infringed Article 21(3). The duty of sincere cooperation, which had existed at all material times, necessarily required OFT to desist from making any reference during that period. If there was no such reference then there would be no occasion to read down or disapply any provision of the Enterprise Act. The consequences of the OFT’s self-denial would have been dealt with in accordance with s.122(4). 41. So also in the case of the Aer Lingus appeal, if the appeal were allowed it would establish that the Commission, not OFT, had both the power to impose interim measures pending the resolution of the Ryanair appeal and the jurisdiction under Article 8(4) in respect of Ryanair’s minority holding in Aer Lingus. In such circumstances any interim measures taken by OFT or the Competition Commission would have been to usurp, to that extent at least, the exclusive jurisdiction of the Commission. Once again the due performance of the duty of sincere cooperation would have called for a period of abstention on the part of the OFT and Competition Commission and there would be no occasion to read down or disapply any provision of the Enterprise Act. 42. If, by contrast the appeals were unsuccessful and the time for any further appeal had expired then the risk of conflicting jurisdictions in respect of the proposed takeover of Aer Lingus by Ryanair would disappear. In those circumstances the OFT’s duty of sincere cooperation would cease to apply leaving it free to make such investigations or references it wished. Accordingly, I conclude that so long as the appeals of Ryanair and Aer Lingus were pending and, after their conclusion, the time for any further appeal still running the duty of sincere cooperation applied. Its due observance required OFT to desist from making any reference or, subject to the possibility referred to in paragraph 43 below, taking any other action under the domestic legislation. Thus, while I accept the first part of the second proposition advanced by counsel for Ryanair I reject the suggested consequence that “it did not preclude OFT from making a reference unders.22 Enterprise Act 2002 of Ryanair’s proposed takeover of Aer Lingus to the Competition Commission as the risk of conflict did not arise at that stage”
“41. Essentially, when and how a stay pursuant to the duty of sincere cooperation ought to be imposed involves – at least in the United Kingdom – something of a balancing exercise (see paragraph [35] of National Grid). This exercise may require a more or less complex assessment of numerous interlocking factors and intrinsically involves an element of appreciation and the exercise of judgment. 42. Our conclusion, viewing the matter apart from the [Court of Appeal’s decision in the [Ryanair/OFT proceedings], is that the question of what needs to be done in order to comply with the duty of sincere cooperation is a nuanced one, which is very dependent on the facts of the given case. Ordinarily – and without, for the moment, considering the ratio of the [Court of Appeal’s decision the Ryanair/OFT proceedings] – we would very much doubt whether a decision by a NCA such as the [Competition Commission] to continue or not continue with proceedings before it could, without more, be considered to amount to an error of law. (We say nothing about other possible heads of review. It may be that a decision by the OFT or the [Competition Commission] to proceed with an investigation could be criticized as irrational or disproportionate. But no such contentions were advanced by Ryanair before us in this case.)”
“82. This is not a case of “overlapping jurisdictions” as that term is used by the Chancellor in the [Ryanair/OFT proceedings]. In this case, there is no prospect – even contingently – of the exclusive jurisdiction conferred on the European Commission by Article 21 of the EC Merger Regulation extending to the Minority Holding. As is common ground, whilst the shares which are the subject of the Public Bid amount to a concentration with a Community dimension, and so fall within the EC Merger Regulation, the Minority Holding does not. This fact distinguishes the present case from that before the Court of Appeal in the [Ryanair/OFT proceedings] Decision: there Ryanair’s minority shareholding in Aer Lingus was part of the same concentration with a Community dimension as Ryanair’s first public bid, with the result that the entire concentration – including the minority holding – was subject or potentially subject to the EC Merger Regulation. 83. This is a case where there are parallel or concurrent jurisdictions: (1) In the case of the Public Bid, the European Commission has exclusive jurisdiction. (2) In the case of the Minority Holding, the European Commission has no jurisdiction, and the matter falls within the purview of the OFT and the [Competition Commission]. There is no prospect, as regards the Minority Holding, of Article 21 applying, let alone reviving. 84. Accordingly, we reject Ryanair’s contention that, as a matter of law, the duty of sincere cooperation precludes the [Competition Commission] from taking any further steps in the Investigation. Of course, as Mr Beard Q.C., for the [Competition Commission], accepted, the [Competition Commission] remains subject to the duty of sincere cooperation and must avoid taking any final decision in respect of the Minority Holding which would, or could, conflict with the European Commission’s ultimate conclusion on the compatibility of the Public Bid with the common market. That does not mean that the [Competition Commission] is precluded, as a matter of law, from taking any further steps in the Investigation.”
“Thus, although the competition assessment required by each of the two merger regimes is formulated in slightly different language, it is clear that the Competition Commission would be considering precisely the same issues as those which the European Commission had considered and Ryanair had raised for determination by the General Court, namely the existence and nature of competitive constraints on the merging parties, an assessment of barriers to entry, a route-by-route analysis, and an assessment of alleged efficiency gains. Moreover, if in the course of a Competition Commission investigation Ryanair had proposed any remedies, then similar issues might well have arisen as arose in relation to the commitments which were the subject of the EU proceedings. It would compromise legal certainty and undermine the objectives of the Merger Regulation for there to be inconsistent assessments and findings on such issues. ”
“In the view I have taken a reference of a merger situation in respect of Ryanair’s proposed takeover of Aer Lingus could not have been made until both the Ryanair and Aer Lingus appeals had been finally determined. The direct cause of this impediment was the duty of sincere cooperation. The duty arose because of the ECMR, in particular, Article 21. Therefore s.122(4) applied.”
“40. … If the appeals of either or both Ryanair or Aer Lingus had succeeded there would have been an immediate clash of jurisdictions. The success of the Ryanair appeal would, on any view, have confirmed the application of Article 21 so that all steps taken by the OFT and Competition Commission under the reference assumed to have been made by OFT in the period the appeal was pending would have infringed Article 21(3). The duty of sincere cooperation, which had existed at all material times, necessarily required OFT to desist from making any reference during that period. …” “41. So also in the case of the Aer Lingus appeal, if the appeal were allowed it would establish that the Commission, not OFT, had both the power to impose interim measures pending the resolution of the Ryanair appeal and the jurisdiction under Article 8(4) in respect of Ryanair’s minority holding in Aer Lingus. In such circumstances any interim measures taken by OFT or the Competition Commission would have been to usurp, to that extent at least, the exclusive jurisdiction of the Commission. Once again the due performance of the duty of sincere cooperation would have called for a period of abstention on the part of the OFT and Competition Commission …” “42. If, by contrast the appeals were unsuccessful and the time for any further appeal had expired then the risk of conflicting jurisdictions in respect of the proposed takeover of Aer Lingus by Ryanair would disappear. In those circumstances the OFT’s duty of sincere cooperation would cease to apply leaving it free to make such investigations or references it wished. …”