Consequences for the violation of EC competition rules

1
Consequences for the violation of EC competition
rules
Bedanna Bapuly Brno, 29th December 2006
2
Contents
Introduction Nullity Action for damages and/or
injunctive relief Concluding remarks
3
Introduction

• Private enforcement brings benefits for
• the functioning of the market and
• the competitiveness of the economy.
• Interplay of EC and domestic law
• Public and civil enforcement
• Art 81 EC
• Art 82 EC

4
Nullity
Art 81 (2) EC Any agreements or decisions
prohibited pursuant to this Article shall be
automatically void Art 1 Reg (EC)
1/2003 Agreements, decisions and concerted
practises caught by art 81 (1) EC which do not
satisfy the conditions of art 81 (3) EC shall be
prohibited, no prior decision to that effect
being required
5
Nullity

• Absolute nullity
• nullity ex tunc
• nullity ipso iure
• to be declared ex offo

6
Partial nullity
Severable elements Purpose of the provision
Geltungserhaltende Reduktion preserving
parts of the contract -gt restitution -gt
contractual damages
7
Action for damages
Case C-453/99, Courage vs Crehan, ECR 2001,
I-6297 -gt domestic law -gt principles of EC law
non-discrimination principle of efficiency
(para 29) principle of equivalence (para
29) duty to mitigate damages (para
33) prohibition of unjust enrichment
(para30) contributory negligence (para 31)
8
Injunctive Relief
Legal doctrine affirmative SC no tortious
injunctive relief in general, but when gt
contractual obligation gt rights deserving
absolute protection gt explicit rights in rem
9
Art 82 EC
Art 82 does not contain any provision regarding
the consequences for infringement! -gt domestic
law in A gt (partial) nullity gt
damages purpose of the norm adhere to the
positive effects (fidelity rebate)
10
Civil enforcement record
. inexistent gt access to evidence gt costs of
procedure gt uncertainty as to the result of
proceeding but cease and desist orders by the
Cartel Court (NCA)
11
Concluding Remarks
Preliminary references nature and
quantification of damages Harmonisation
efforts? fault requirements, calculation of
damages Collective/representative actions by
consumer associations Follow-on actions
evidential value of NCA decisions Stand-alone
actions proportional disclosure of evidence
by the defendant
12
Concluding remarks
Empowering the Cartel Court (NCA) to award
damages Extending the locus standi before the
Cartel court to other consumer organisations