Electro Rent appeals first ever CMA fine for gun jumping.

Electro Rent appeals first ever CMA fine for gun jumping.

Introduction and Summary An appeal has been launched against the UK competition regulator, the Competition and Markets Authority’s (CMA) first decision fining a party for gun jumping. On 20 July 2018, the Competition Appeal Tribunal (CAT) announced that Electro Rent Corporation (Electro Rent) had lodged an appeal against the decision of the CMA to impose a penalty of £100,000 on Electro Rent for failure to comply with an interim standstill obligation while its completed merger with Microlease was being investigated by the competition regulator . Electro Rent had notified the Monitoring Trustee of its intention to terminate the lease over its only UK premises but the CMA argued that the Monitoring Trustee had no authority to bind the CMA and Electro Rent should of but failed to seek direct consent to such a move from the CMA. Therefore Electro Rent was guilty of gun jumping Under UK merger control rules notification of mergers qualifying for investigation under the UK Enterprise Act 2002 to the CMA is voluntary. However the CMA does have “own initiative” powers to call deals in for investigation. In completed merger cases where it commences an investigation it routinely imposes initial enforcement orders or “standstill obligation “ demanding that the parties take no steps to put the merger into practice until their investigation concluded . Parties can be fined up to 5% of their worldwide turnover for breach. Background Electro Rent and Microlease both supplied testing and measurement equipment (TME) which was integrated into specialist equipment […]

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.