Blocking Extraterritorial Jurisdiction: The British Protection of Trading Interests Act, 1980

Abstract

The Protection of Trading Interests Act, passed by the United Kingdom Parliament on March 20, 1980, is one of the most remarkable pieces of legislation to emerge in recent years from that body. It effects a significant shift in British policy relating to the control of international restrictive practices, and is of considerable interest to international lawyers. The aim of the Government in introducing the measure was, in the words of the Secretary of State for Trade, “to reassert and reinforce the defences of the United Kingdom against attempts by other countries to enforce their economic and commercial policies unilaterally on us.” This aim is secured, in general terms, by a combination of three measures. Firstly, an extension of the power of the British Government to forbid compliance by British citizens and businesses with orders of foreign authorities, where those orders have extraterritorial effect and prejudice British trading interests. Secondly, a prohibition on the enforcement by United Kingdom courts of foreign judgments involving the award of multiple damages and of certain other judgments touching upon the control of restrictive practices. Thirdly, the establishment of a right for British citizens or businesses against whom foreign courts have awarded multiple damages to recover the noncompensatory element from the original plaintiff by an action in a United Kingdom court.