Genzyme to pay damages under new UK procedure

USA-based biotechnology firm Genzyme, which was fined L3.0 million ($5.9 million) by UK regulators for anticompetitive behavior, has been ordered to pay an additional L2.0 million by the Competition Appeal Tribunal. The case was brought by Genzyme's former UK partner Healthcare at Home, on the basis of lost business as a result of the US firm's activities.

Local media reports indicate that the CAT ruling sets a legal precedent under English law. Previously, a firm wishing to claim damages on the basis of a rival's anticompetitive actions that had been exposed by UK or European Union regulators, would have been forced to proceed through the High Courts, a costly and slow process. Under the UK's 2002 Enterprise Act, however, the CAT has the jurisdiction to rule on damages cases where the UK's Office of Fair Trading or the European Commission has found violation of competition regulations.