UK collects class action lawsuits valued at £135 billion, though landmark defeats prompt doubts about the system
The UK's competition class actions are experiencing a surge in both scale and value, with the cumulative value of these actions exceeding £134 billion as of 2024. This growth is marked by an average of more than 10 class actions per UK resident and a total of over 655 million class members across Competition Appeal Tribunal (CAT) cases.
Recent trends reveal a shift in the opt-in vs. opt-out actions, with opt-out actions—where class members are included unless they opt out—growing significantly in value due to CAT actions. In fact, opt-outs are expected to overtake opt-ins soon. The UK government is actively reviewing the opt-out regime's effectiveness and is considering reforms to improve efficiency and consumer redress.
The focus on major tech firms and digital market regulation is another key trend. The Competition and Markets Authority (CMA) has started designating firms with Strategic Market Status under the Digital Markets, Competition, and Consumers Act 2024, targeting large tech companies' anti-competitive behavior. The CMA's enhanced consumer enforcement powers, which came into effect in April 2025, may lead to follow-on class actions from CMA investigations.
The third-party funding sector is facing pressures due to recent decisions and the opening of a call for evidence on the opt-out collective actions regime by the Department for Business and Trade. The scrutiny of third-party funders' returns is causing some funders to recalibrate or reduce their enthusiasm for financing UK class actions, leading to a market correction with fewer financing offers for new claims.
Regulatory and judicial developments are also shaping the landscape for competition class actions. The Competition Justice Committee (CJC) guidance and appellate rulings are expected to clarify procedural questions and enhance London's status as a hub for large-scale class litigation. Meanwhile, sector-specific investigations, such as the UK housebuilders’ anti-competitive conduct, show the CMA's active enforcement, which can trigger class actions.
Notable cases include the Merricks v Mastercard class action settlement, approved by the Tribunal in May, amounting to £200m. However, the Le Patourel v BT Group case, which resulted in a win for the defendants, was not mentioned in this paragraph.
In summary, the UK’s competition class actions are evolving with increasing economic significance, heightened government scrutiny—including reforms to the opt-out regime—and more cautious third-party funder participation, all of which shape the landscape for actions against major tech firms and others in the near future.
Businesses and finance are at the forefront of the evolving landscape for competition class actions in the UK. The scrutiny of third-party funders' returns is causing a market correction with fewer financing offers for new claims, impacting the finance sector. On the other hand, the Competition and Markets Authority's enhanced consumer enforcement powers, particularly against large tech companies, could lead to significant business opportunities for law firms involved in follow-on class actions.
