Virgin gets shafted

 

Virgin gets shafted…
Dipping my toe into legal waters yesterday at the Sir David Eady lecture left me with quite an appetite for the law. The lecture was a fascinating insight into the finely balanced judgement of what should be deemed private under article 8 of the ECHRA and what constitutes freedom of expression under article 10. As a first year and unseasoned in media law it is only the recent events of a footballer’s affinity for French tarte’ that got my attention to the ongoing game of top trumps being played with the Convention Acts.
Judge Eady holds great power over the freedom of expression for journalists. As we know through history lessons Journalism is the Fourth Estate, holding power to account on behalf of the humble citizen, the bedrock of society, the cornerstone of democracy. Leo Whitlock from the Kent Messenger Group said – when Sir Eady had left the building – that he didn’t like the idea of Sir Eady telling him what he could or could not print in his newspapers. He see it as a kerb on his freedom of expression and rightly so. Mr Whitlock also believes that he has an obligation to his readership to publish material that is in their interest, sustaining a quid pro quo relationship and a profitable newspaper… The debate rattles on.
But also in the public interest, my attention this morning turned to the matter of competition law. Richard Branson and Virgin Atlantic are sure to suffer as an announcement has been made by BA – already merged with Iberia Air – will now also merge with American Airlines. Sir Branson said this is “a kick in the teeth” for consumers.
Under competition law monopolization is an offence. The nature of market competition where independent companies fight it out, ensures that the customer benefits from lower prices and better quality of service. The company also benefits, companies are made to run more efficiently to increase profits, cutting losses by improving services. What BA, Iberia and AA have done is collusion. These companies can now work together, gaining as a single firm the economic profits that they were once fighting for and eventually strangle smaller, more independent businesses such as Virgin; the price benefit returning to the customer or rather, back into the pockets of the shareholders.
The US Department For Transportation has giving the merger the green light and the companies anti-trust immunity to which Sir Branson said: “The US Department of Justice, who are the experts in competition issues, called for strict remedies to protect the public interest, because the alliance will blatantly harm competition and the consumer. The Department of Transportation has chosen to stick two fingers up at them. In my personal opinion, this draft decision is a real kick in the teeth for consumers and they will be paying the price for it for years to come.”
 
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