DTI suffers travel industry rebuff

THE DEPARTMENT of Trade and Industry yesterday suffered an embarrassing and rare defeat at the hands of the Court of Appeal, which ruled that the Government had acted unconstitutionally in making an order to restrict the terms of business between tour operators and travel agents.

Thomson Travel had sought a judicial review of the orders which, it claimed, oppressively went beyond the recommendations of a Monopolies and Mergers Commission investigation of the travel industry.

The ruling could have far- reaching implications, not only for the travel sector, but for all areas of business which are or have been the subject of an investigation by the Competition Commission.

John Cook, a partner at Macfarlanes, the law firm which represented Thomson said: "This is the first time a judicial review has been successful in this area of competition law and the Court of Appeal's judgment will stand as the leading authority on the proper role and powers of ministers following an adverse report from the Competition Commission."

He said the ruling could affect the outcome of the investigation into the motor industry if the commission uncovers anti-competitive practices in the agreements between manufacturers and dealers.

The Thomson case centred on an order instigated in 1997 by Margaret Beckett, the then Trade Secretary, and signed in 1998 by Kim Howells, the former Trade Under-secretary.

The order, which aimed to stamp out anti-competitive practices in the travel industry, was drawn up in response to an earlier MMC report. But Lord Justice Laws yesterday found the order was invalid because it "travels far beyond the fulfilment of legitimate objectives and could not possibly conform to the regime for regulating monopolies on its proper construction".

Thomson Travel said: "We welcome the Court of Appeal's judgment which confirms the advice we have received throughout ... the 1998 Order was too wide and amounted to a rewrite of the MMC's findings by the Government.

"The order generated a great deal of unnecessary uncertainty in the whole travel industry as to what all travel operators - not just Thomson - could legitimately agree with travel agents and thankfully we now know where we stand."

Dermot Blastland, managing director of First Choice's UK tour business, said: "[The order] was frustrating the normal course of business. In trying to create a level playing field, the Government did the opposite."

A spokesman for the DTI said: "We are studying the judgment carefully."

PROMOTED VIDEO
Arts and Entertainment
Judi Dench appeared at the Hay Festival to perform excerpts from Shakespearean plays
tvJudi Dench and Hugh Bonneville join Benedict Cumberbatch in BBC Shakespeare adaptations
Life and Style
fashion David Beckham fronts adverts for his underwear collection
Arts and Entertainment
Exhibition at the Centre Pompidou in Metz - 23 May 2012
art
News
i100Most young people can't
Sport
Is this how Mario Balotelli will cruise into Liverpool?
football
Arts and Entertainment
Alfred Molina, left, and John Lithgow in a scene from 'Love Is Strange'
film
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Soft Developer (4.0, C#, Windows Services, Sockets, LINQ, WCF)

£65000 - £75000 per annum: Harrington Starr: .NET Developer (4.0, C#, Windows ...

C# Developer -Winforms, VB6 - Trading Systems - Woking

£1 per annum: Harrington Starr: A leading financial software house with its He...

C #Programmer (.Net 4.0/4.5/ C#) -Hertfordshire-Finance

£45000 - £50000 per annum: Harrington Starr: C #Developer (.Net 4.0/4.5/ C#, A...

JQuery Developer JQuery, UI, Tomcat, Java - Woking

£1 per annum: Harrington Starr: JQuery Developer JQuery, UI, Tomcat, Java - Tr...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home