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Laurent Geelhand, Jan 21, 2015
During the course of the past decade, the European Commission has been fine-tuning proposals in order to create a workable and efficient private enforcement regime via the pursuit of damages actions before EU Member State Courts. The approval of the Directive on Antitrust Damages by the European Parliament on April 17, 2014, and its recent adoption by the Council of Ministers on November 10, 2014 marks the culmination of the EU’s desire to reinforce a somewhat fragmented regime for the pursuit of antitrust damages actions across all 28 Member States.
The Directive marks a significant cultural shift in the European authorities’ approach in providing meaningful access to vindicate the right of its citizens. As Hausfeld Chairman, Michael Hausfeld, states:
In the past, there has been a prevailing paternalistic approach, that government enforcers had the sole responsibility for determining and remedying infringement of competition law. As Vice President Almunia’s parting remarks emphasized, public and private enforcement are complementary. Private enforcement is an integral and necessary element of legal accountability to those who violate European law. This is a much welcomed opening to the citizens and economies of Europe.
Thus, the adoption of the Directive and its signing into law on November 26, 2014 marks a sea change in Europe where many executives have long been reluctant to sue suppliers, and victimized businesses have failed to pursue compensation. In turn, the Directive will inevitably lead to a boost of competition litigation actions throughout Europe. However, whether or not it will open Pandora’s Box to floodgate concerns for civil litigation remains to be seen.
