Home Knowledge In Short: Competition Authority Achieves Favourable Settlement in Long-Running Beef Cartel Case

In Short: Competition Authority Achieves Favourable Settlement in Long-Running Beef Cartel Case

Claire Waterson

The Competition Authority has achieved a favourable settlement in its case against the Beef Industry Development Society (BIDS).

In 2003 the Authority unsuccessfully applied to the High Court for an order restraining BIDS from effecting an agreement under which processors would leave the beef industry in return for payment. The Authority appealed to the Supreme Court which stayed proceedings pending a preliminary ruling from the European Court of Justice. The ECJ determined that an agreement with features such as those of the BIDS agreement had an anti-competitive object. The Supreme Court ruled accordingly and remitted the case to the High Court to assess whether the benefits of the agreement outweighed its anti-competitive effects. Before the High Court could reach a decision on this matter, BIDS withdrew its claim and agreed to pay a “substantial contribution” to the Authority’s costs in the case.