Plausible defence? CAT’s ruling on mitigation by cost reduction

19 May 2021

Last week, the Competition Appeal Tribunal (CAT) dismissed DAF’s application to run a “mitigation by costs reduction” defence in the context of Royal Mail’s and BT’s damages claims against it. Royal Mail and BT both claim that they were charged too much for the trucks they purchased from DAF between 1997 and 2011 as a consequence of the trucks cartel. DAF sought to argue that Royal Mail and BT may have mitigated any overcharge by paying less for other inputs. Amongst other things, the CAT concluded that DAF did not have “a sufficiently arguable case – with realistic prospects of success”. Economic Insight is advising Royal Mail and BT in relation to their claims and provided evidence to the CAT on this issue.

The CAT’s ruling on mitigation can be found here:

Details of the European Commission’s decision on the trucks cartel can be found here:

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