The UK Competition Appeal Tribunal, in a merger case involving two companies providing technology solutions to the travel industry, confirms the Competition Authority’s broad discretion to review deals with limited UK nexus (Sabre / Farelogix)

In a continuing trend of increased regulatory intervention in deals globally, the UK’s Competition Appeal Tribunal (Tribunal) has confirmed that the Competition and Markets Authority (CMA) has broad discretion to claim jurisdiction over mergers, even where one party has very limited and indirect UK sales. In its much-anticipated Sabre Corporation v Competition and Markets Authority judgment, the Tribunal unanimously dismissed Sabre’s appeal, concluding that the CMA had not erred in applying the ‘share of supply’ test during its assessment of Sabre Corporation’s proposed acquisition of Farelogix Inc. The judgment serves as a reminder that parties should: closely assess upfront whether the CMA may have the ability (and incentive) to intervene in light of its increasingly broad