Litigators Address Complexity in UK Competition Evidence Processes
In the realm of UK competition disputes, litigators are facing an escalating challenge: balancing the need for simplicity in economic evidence with the growing intricacy of the cases being argued. A recent report by Cornerstone Research sheds light on this tension, detailing the evolving role of economic evidence in competition disputes. Prominent litigators from esteemed law firms such as CMS, Freshfields, Hausfeld, Herbert Smith Freehills, Linklaters, Quinn Emanuel, and Slaughter and May, collaborated with economists from Cornerstone Research to explore these issues.
The report follows recent developments, including a UK Government consultation on competition redress reform that recently concluded and the Competition Appeal Tribunal’s (CAT) Practice Direction 2/2025, which imposes page limits on some expert reports. Over the last few years, the landscape of competition litigation has transformed significantly—featuring high-stakes cases accompanied by enhanced scrutiny of expert witnesses by the Tribunal. The CAT has increasingly focused on the principles of proportionality and independence, leading to vocal criticisms of economic modelling that experts present, which may be perceived as overly complex or abstract.
Liam Colley, a senior vice president at Cornerstone Research and head of their European competition practice, commented on the findings, noting that since its establishment in 2003, the CAT has persistently dealt with complicated economic matters. However, the introduction of the class action regime has amplified the scale of the claims from an exceptional £1 billion to staggering amounts like £14 billion, marking an unprecedented shift in the legal landscape.
Colley cautioned against interpreting the Tribunal's pragmatic stance as an indication to simplify economic analyses. Rather, he emphasized that the Tribunal is actually demanding a high standard of analyses without shortcuts. Experts are required to rigorously apply their methodologies, grounded in the factual matrix of the case while articulating complexities with clarity.
Key insights from the Cornerstone Research report reveal that:
1. Central Role of Economic Evidence: Economic considerations have become vital in shaping competition cases from their inception, funding, through to settlements. The CAT is now a prudent user of economic evidence, yet, the sheer volume and complexity of collective cases exert increasing pressure on the Tribunal.
2. Intensified Scrutiny of Experts: A 2025 Practice Direction from the CAT raises expectations regarding expert independence, proportionality, and methodology. Experts must ensure their economic modelling is closely aligned with the case's factual and commercial realities, with the Tribunal showing readiness to criticize witnesses deemed overly dogmatic or biased.
3. Balancing Complexity with Practicality: Courts are demanding both thorough economic modelling and evidence that is accessible and applicable. Legal practitioners express concern about reconciling the expectation for concise reports and simplified analyses with the genuinely challenging economic questions at hand.
4. Emphasis on Quality Methodologies: While inherent uncertainties exist, delivering robust analyses, credible data, sound factual bases, and clear explanations is essential to producing credible expert evidence for the court.
5. Evolution of the Expert Market: An impending shift in the expert market is necessary where communication, sound judgment, and the capacity to withstand judicial scrutiny are valued alongside technical knowledge. The rising demand for economic experts also necessitates the development of a diverse pool of testifying economists for the future.
The findings and detailed discussions can be accessed in the full report titled Quantum Mechanics: The Evolving Role of Economic Evidence in UK Competition Disputes. Cornerstone Research stands as a premier entity in the domain of economic and financial consulting, renowned for delivering astute analytical solutions that address complex disputes. With a robust network of industry experts and a legacy of precision and innovation since 1989, Cornerstone continues to set benchmarks in the industry across their global offices.
The report follows recent developments, including a UK Government consultation on competition redress reform that recently concluded and the Competition Appeal Tribunal’s (CAT) Practice Direction 2/2025, which imposes page limits on some expert reports. Over the last few years, the landscape of competition litigation has transformed significantly—featuring high-stakes cases accompanied by enhanced scrutiny of expert witnesses by the Tribunal. The CAT has increasingly focused on the principles of proportionality and independence, leading to vocal criticisms of economic modelling that experts present, which may be perceived as overly complex or abstract.
Liam Colley, a senior vice president at Cornerstone Research and head of their European competition practice, commented on the findings, noting that since its establishment in 2003, the CAT has persistently dealt with complicated economic matters. However, the introduction of the class action regime has amplified the scale of the claims from an exceptional £1 billion to staggering amounts like £14 billion, marking an unprecedented shift in the legal landscape.
Colley cautioned against interpreting the Tribunal's pragmatic stance as an indication to simplify economic analyses. Rather, he emphasized that the Tribunal is actually demanding a high standard of analyses without shortcuts. Experts are required to rigorously apply their methodologies, grounded in the factual matrix of the case while articulating complexities with clarity.
Key insights from the Cornerstone Research report reveal that:
1. Central Role of Economic Evidence: Economic considerations have become vital in shaping competition cases from their inception, funding, through to settlements. The CAT is now a prudent user of economic evidence, yet, the sheer volume and complexity of collective cases exert increasing pressure on the Tribunal.
2. Intensified Scrutiny of Experts: A 2025 Practice Direction from the CAT raises expectations regarding expert independence, proportionality, and methodology. Experts must ensure their economic modelling is closely aligned with the case's factual and commercial realities, with the Tribunal showing readiness to criticize witnesses deemed overly dogmatic or biased.
3. Balancing Complexity with Practicality: Courts are demanding both thorough economic modelling and evidence that is accessible and applicable. Legal practitioners express concern about reconciling the expectation for concise reports and simplified analyses with the genuinely challenging economic questions at hand.
4. Emphasis on Quality Methodologies: While inherent uncertainties exist, delivering robust analyses, credible data, sound factual bases, and clear explanations is essential to producing credible expert evidence for the court.
5. Evolution of the Expert Market: An impending shift in the expert market is necessary where communication, sound judgment, and the capacity to withstand judicial scrutiny are valued alongside technical knowledge. The rising demand for economic experts also necessitates the development of a diverse pool of testifying economists for the future.
The findings and detailed discussions can be accessed in the full report titled Quantum Mechanics: The Evolving Role of Economic Evidence in UK Competition Disputes. Cornerstone Research stands as a premier entity in the domain of economic and financial consulting, renowned for delivering astute analytical solutions that address complex disputes. With a robust network of industry experts and a legacy of precision and innovation since 1989, Cornerstone continues to set benchmarks in the industry across their global offices.
Topics Policy & Public Interest）
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