racing_news/

ATR Wins Landmark Victory In Racing Data Case
22/12/05

At The Races ("ATR"), the UK and Ireland's most watched dedicated racing channel, is delighted to announce that the Judge, Mr Justice Etherton, has found in its favour in its claim against the BHB over the issue of pre-race data. This is the first time a court in the UK has ever found that a business practice is in abuse of a dominant market position, a landmark in competition law. The Judge also found that the BHB adopted a policy of excessive and discriminatory pricing, again in breach of competition law.

ATR was also awarded costs with £700,000 to be paid on an accelerated basis within the next 21 days.

The Case

The claim related to the supply to ATR of "pre-race data", information on runners and riders that is necessary to enable bookmakers to take bets on horse races. ATR pays the Press Association ("PA") for the supply of a pre-race data feed for ATR's service to overseas bookmakers, with the BHB having a separate agreement to supply the data to PA. The BHB demanded that ATR enter into an additional licence with the BHB to pay for database rights in the data.

After the European Court of Justice ruled in November 2004 that the BHB had no database rights in the data, ATR asked the BHB to clarify the basis on which it sought payment. In response, the BHB said that unless ATR agreed to pay licence fees to the BHB, it would instruct PA to terminate its supply of pre-race data to ATR.

ATR then brought the current proceedings, claiming that the threat by the BHB to prevent PA from supplying pre-race data to ATR constituted an abuse of a dominant position under EU and UK competition laws.

High Court Judgment

In the hearing, ATR argued:

• that the relevant market for the purposes of the proceedings was the supply of pre-race data - the BHB argued for a much broader market;

• that the BHB was dominant in the market, indeed an effective monopolist - the BHB asserted that it had no dominant position;

• that the BHB's conduct was an illegal refusal to supply ATR; that pre-race data is an "essential facility" controlled by the BHB; that the licence fees proposed by the BHB were excessive and unfair; and that the BHB was discriminating against ATR. BHB tried to justify the charges on the basis that ATR should pay the BHB for investments made by the BHB and others in British horseracing, irrespective of whether those investments benefited ATR or overseas bookmakers

On all of these points the court found in ATR's favour.

Matthew Imi, Chief Executive, At The Races said: "We have been totally vindicated by this resounding judgment. The BHB has been found to have abused its position and pursued a discriminatory and excessive pricing policy. Its actions have resulted in an unnecessary and considerable waste of its resources both financial and in management time. ATR contributes significant sums to British horse racing through its media rights payments to its racecourse partners and we have made massive strides in increasing the exposure of British racing, both at home and internationally. ATR has had a fantastic year and we now look forward to 2006 with even more optimism."

ATR was advised by Olswang.