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Old 26th Jan 2013, 16:50
  #1177 (permalink)  
Meccano
 
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bucko its completely irrelevant what decision the UK Competition Authority makes because the ultimate decision lies with the European Commission....
The UK Court of Appeal ruled in May on the OFT’s actions and concluded that the “duty of sincere co-operation” between the UK and EU meant that it was right to hold off its scrutiny until the EU court process was at an end. But it did not deny the UK OFT's right to proceed afterward (if appropriate) to make a determination on the Ryanair holding.

....and any appeals thereafter with the European Court of Justice, who have already ruled on the issue of Ryanair's stake in Aer Lingus which is what the UK CA is investigating.
I believe they ruled that under broader EU rules that Ryanair was not required (by them) to divest, but the UK CA looks at UK specific conditions, and can indeed rule against Ryanair if it so wishes. The result of which could be forced divestment.

I would also remind you that Google and Microsoft - some of the biggest companies in the world - have lost cases in the EU Courts. So dont imagine FR cannot also.

And aside from being a waste of UK taxpayers money, it also sets a dangerous precedent because the UK are essentially sending out the message to other countries that it's ok to attempt to block the merging over 2 airlines in another jurisdiction simply because they overlap on some route into and out of that country.
And because they wish to do business in the UK while being in breach of UK consumer protection regulations.

So because BMI flew to Dublin, it would have been acceptable for the Irish Competition Authority to investigate BA's takeover of BMI and attempt to block it if it found reasons to do so, even though the takeover would have limited impact on Ireland.
I don't think it would have blocked it at all! It would simply have said don't do business in Ireland if that's your intent.

As things stand, the Irish government is against Ryanair's takeover of Aer Lingus. But had it been supportive of it, and the European Commission approved it, the UK Competition Authority attempting to overstep it's remit and block the takeover of 2 companies based outside it's jurisdiction could spark a massive bilateral dispute.
I have absolutely no doubt that all these decisions carry a political element.
Maybe if Micko was less of a mouth he'd get a better hearing.
You see, there is a price eventually for being an ass and pissing off all and sundry in positions of power.
Hubris.
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