Kenny Henderson

Competition class actions comprised 540 million members by the end of 2023, an increase of 200 million from the previous year.

Class actions have risen 10 per cent to 133 in Europe. The claims filed represent a 10 per cent increase from 2022 and a 93 per cent increase since 2019.

In the UK, competition class actions continue to dominate the class actions environment, accounting for more than half of the total value claimed (€78.68bn). In December 2023, the Competition Appeal Tribunal approved the first competition class action settlement of £1.5m in the McLaren ro-ro car delivery, paving the way for further settlements of this nature.

Kenny Henderson, partner at CMS in Edinburgh, said: “It is extraordinary that competition class actions encompassing more than 540 million class members have been brought in the UK, with most of the growth in just the last three years. This translates to more than 8.1 actions for each person in the UK.

“The numbers are so other-worldly because these people are brought into these opt-out US class actions without being asked and usually without their knowledge. Equally astronomical are the sums involved. In the period 2018-2023, £120bn of damages were sought – a level of damages that continues to increase year on year.”

The CMS report also reveals the deep spread of claims across Europe. While England and Wales remained the highest-risk European jurisdiction, accounting for 29 per cent of all claims, Portugal (23 per cent) and the Netherlands (18 per cent) closely followed.

Germany (eight per cent), Poland (six per cent) and Italy (four per cent) were also more active in 2023. This is a stark contrast to 2020, when 63 per cent of claims were filed in England and Wales.

The implementation of the Representative Action Directive (RAD) in 2023, aimed at facilitating collective redress for mass consumer claims, has been a pivotal development, taking effect in Portugal, Netherlands and most EU states.

Dr Zsolt Okányi, CMS’s global head dispute resolution, added: “While the UK continues to lead in terms of risk, the rapid rise in claims in Portugal and the Netherlands signals a broader trend.

“The increased availability of litigation funding and advancements in technology have facilitated the pursuit of mass claims and made it easier for claimants to organise and file actions.

“The implementation of RAD is also proving significant, providing a mechanism for collective redress and empowering consumers and public bodies across Europe to take action against more corporations.”