Part 2: Competition Proceedings before the Competition Appeal Tribunal Section 126: Exemplary damages
This section amends the Competition Act 1998 to enable the CAT, High Court of England and Wales, the Court of Session and Sheriff Court in Scotland, or the High Court in Northern Ireland to award exemplary damages in competition cases (except in collective proceedings before the CAT).
	Parties who have suffered harm due to a breach of competition law can initiate private damages claims, on a stand-alone or follow-on basis, against individuals or businesses which committed the infringement or alleged infringement.
	Exemplary damages, in common law, are awarded beyond what is compensatory for the loss or harm which occurred to punish particularly egregious conduct. In cases where compensatory redress is considered insufficient in light of the defendant’s conduct, additional and proportionate exemplary damages can be sought. Courts have developed well-established principles regarding the award of exemplary damages, including when such an award may be made and the quantum thereof.
	Subsection (1) amends section 47C of the Competition Act 1998 so that exemplary damages cannot be sought or granted in collective proceedings before the CAT, that is cases where multiple claimants are seeking remedies against the same defendant(s) as part of one case.
	Subsection (2) makes amendments to Schedule 8A to the Competition Act 1998. Paragraph 15 of Schedule 8A is amended to provide that an immunity recipient can be liable to pay exemplary damages to its direct or indirect customers or suppliers (as defined in subparagraphs (a) to (d) of paragraph 15(1)). However, an immunity recipient cannot be held liable for exemplary damages that the claimant is unable to obtain from other undertakings involved in the cartel infringement. Part 8 of Schedule 8A, which previously prevented the award of exemplary damages, is repealed, and a consequential amendment is made to Part 10.