Case C-72/15 OJSC Rosneft Oil Company v. HM Treasury; the Secretary of State for Business, Innovation, and Skills; the Financial Conduct Authority

On 23 February 2016 the Grand Chamber of the Court of Justice of the EU heard Case C-72/15 Rosneft, concerning that company’s challenge to the sanctions imposed by the EU on the Russian Federation, and in particular on the Russian oil sector, in response to Russia’s actions in Ukraine.

The case was referred by the High Court in February 2015 ([2015] EWHC 248 (Admin)) and raises questions both as to the legality of the EU’s sanctions against Russia, and important constitutional issues concerning the jurisdiction of the EU Court of Justice to rule on the validity of decisions adopted under the EU Common Foreign and Security Policy.

The debate at the oral hearing focused on the interpretation of Article 275 TFEU, which limits the CJEU’s jurisdiction in relation to foreign and security policy matters, on the scope of Article 215(2) TFEU, which concerns restrictive measures adopted against natural or legal persons and groups or non-State entities, and on the role of the national courts in protecting fundamental rights affected by EU foreign policy decisions.

The judgment is likely to contain important findings by the CJEU as to the proportionality of sectorally-targeted sanctions, such as those targeting the Russian oil industry, and the jurisdiction of both national courts and the CJEU itself to consider challenges to the validity of EU foreign policy decisions. The Court is, in particular, considering whether EU law recognises the concept of a non-justiciable acte de gouvernement.

Gerry Facenna QC appeared on behalf of the United Kingdom. The hearing was also attended by Rosneft, the UK Financial Conduct Authority, the Czech Republic, Estonia, France, Germany, the EU Council and the Commission. The Advocate General’s Opinion is due on 31 May 2016.

In the proceedings in the High Court, Tim Ward QC and Julianne Kerr Morrison also acted for HM Treasury and the Department for Business, Innovation and Skills.

The European Court in Rywin v. Poland (read here) has found by a 4-3 majority  that the presumption of innocence under Article 6(2) of the European Convention on Human Rights was not breached by the contemporaneous  carrying out of criminal proceedings and a parliamentary commission of inquiry into a corruption scandal which concerned a well-known film producer. The work of the commission of inquiry had given rise to extensive media comment and the lower house of Parliament had approved the commission’s report in which five high-ranking State officials were alleged to have been guilty of corruption in connection with the legislative procedure for the amendment of the Broadcasting Act and the film producer was mentioned as being the “agent” of those officials. The film producer was subsequently convicted of attempted fraud. The Court considered that the presumption of innocence had not been breached by the wording of the resolution setting up the parliamentary commission of inquiry and the findings of the commission’s report. The Court also found that there had been no violation of the right to a fair trial under Article 6(1) or of the prohibition on inhuman and degrading treatment under Article 3. It considered that the reasoning of the judgments delivered by the criminal courts did not reveal anything to suggest that the judges had been influenced by the statements of the members of the commission or by the findings in its report and that the authorities had been attentive to the producer’s state of health during his imprisonment and that the general conditions of his detention could not be criticised.

Jeremy McBride acted for Mr Rywin.

High Court dismisses claim against Google, holding that, where a pro-competitive innovation by a dominant company is alleged to have harmed competition on a related market, the effect on competition in that market must be serious or appreciable in order to constitute an abuse of dominance.

In a judgment handed down today, the High Court dismissed a claim for abuse of dominance brought against Google by online map provider Streetmap.

Streetmap alleged that, by displaying a clickable image of a map, taken from Google Maps, at the top of its search engine results page in response to certain search queries, Google gave Google Maps an unfair advantage over other online map providers, and thereby abused its (assumed) dominant position in the market for online search.

In an important judgment on the application of competition law (The prohibition on abuse of dominance is contained in Article 102 of the Treaty on the Functioning of the European Union and Chapter II of the Competition Act 1998) in rapidly developing online markets, Mr Justice Roth rejected Streetmap’s case, holding that:

• since the introduction of a clickable map image on its search page was a pro-competitive measure on the market where Google was dominant, for its conduct to be abusive, it had to be reasonably likely to have a serious or appreciable effect on competition in the related market for online maps;
• on all the evidence, the introduction of the clickable map image on Google’s search page had not taken custom away from Streetmap.  Therefore, it was not reasonably likely to gives rise to anti-competitive foreclosure;
• in any event, Google’s conduct was objectively justified.  Since the alternative technical solutions proposed by Streetmap would have entailed significant practical problems, or imposed a substantial additional burden on Google, it had not been required to implement them by any obligation of proportionality.

Google was represented by Jon Turner QC, Josh Holmes and Ben Lask.

To view the full judgment, please click here.

A full case note will be issued shortly.

The Chinese dissident Wang Yam was jailed for life for the murder of the reclusive author Allan Chappelow. In the criminal trial, for unspecified national security and witness protection reasons, the trial judge ordered that the defence case should be heard in secret.

Mr Yam subsequently applied to the European Court of Human Rights in Strasbourg (“ECtHR”), arguing that the secret trial constituted a breach of his right to a fair trial under Article 6 ECHR. By an order of the English court, however, Mr Yam was prevented from disclosing any information regarding the secret aspects of his trial, or the reasons for the secrecy, to the ECtHR.

On appeal, the Supreme Court upheld the order, concluding that it was within the power of the lower court to prevent an applicant from placing material before the ECtHR. It held that it was for the ECtHR to decide whether such disclosure was really required and that, in any event, there was a common law power pursuant to which an order for non-disclosure to the ECtHR could be made. The case in the ECtHR remains ongoing.

A copy of the judgment can be found here.

Nikolaus Grubeck, led by Lord Pannick QC and Kirsty Brimelow QC, acted for the Appellant.

Press coverage includes: BBC, The Guardian, London Review of Books.