Suspending Competition Law to Fight the Fuel Crisis
The fuel crisis in the UK is symptomatic of larger scale policy decisions that the government has taken over the past few years. While the whole continent will be affected in some way, Brexit alongside an approach that has been hostile to immigration means that there are less lorry drivers to help deliver fuel to the pumps.
Fortunately this newsletter doesn’t have to engage in such hindsight but we can look at the response by this government which is to suspend competition law.
Normally competition law prohibits companies from working together to raise prices or limit supply but when it is suspended it can allow for co-ordination to work out which parts of the country need their fuel supplies to be re-stocked.
Ultimately this is the right move but it has to be a short-term solution for only a limited amount of time. Suspending any part of the law is not a healthy sign for a democracy and sets a bad precedent. Suspending competition law sets up a de facto government-sanctioned cartel.
The worrying thing is the policies that have caused this issue in the first place mean that it is not likely to be the last time this extreme solution will have to be exercised. Whether it is food or fuel, Britain will have to resort to techniques last used in the 1970s. Coincidentally the time before the country joined the relative haven of the European Union.
Be sure to check out the podcast this week. The Supreme Court looked at an argument between two law firms and had to consider what action was taken in the capacity as a solicitor and what action was taken by the law firm in the capacity as a business.
Episode link: http://uklawweekly.com/2021-uksc-32/
Make a difference today,
Marcus