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ARTICLE · 02 FEBRUARY 2006

Commission Proposals to Kick-start Damages Actions in Competition Cases

Pinsent Masons
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The European Commission has taken its first step in encouraging greater private enforcement of competition law. In its recent Green Paper, it highlights the main obstacles to bringing damages actions for breach of EC competition law and explores various options that could be implemented to facilitate successful litigation.

United KingdomAntitrust/Competition Law
Guy Lougher
Guy Lougher

The European Commission has taken its first step in encouraging greater private enforcement of competition law. In its recent Green Paper, it highlights the main obstacles to bringing damages actions for breach of EC competition law and explores various options that could be implemented to facilitate successful litigation.

Businesses that breach competition law are already at risk of claims for damages in addition to fines imposed by the authorities. However, a study published in September 2004 found that there have been very few successful damages claims and that the present system is totally undeveloped.

The Commission has concluded that improving the conditions for damages claims would: encourage companies and consumers to obtain redress, thus making EC competition law enforcement more effective; deter businesses from engaging in anticompetitive practices; and provide compensation for affected third parties.

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