Cartels

A cartel is a formal agreement among firms in an oligopolistic industry.

Cartel members may agree on such matters as prices, total industry output, market shares, allocation of customers, allocation of territories, bid-rigging, establishment of common sales agencies, and the division of profits or combination of these. Cartel in this broad sense is synonymous with “explicit” forms of collusion. Cartels are formed for the mutual benefit of member firms.

The theory of “cooperative” oligopoly provides the basis for analyzing the formation and the economic effects of cartels. Generally speaking, cartels or cartel behaviour attempts to emulate that of monopoly by restricting industry output, raising or fixing prices in order to earn higher profits.

Source: OECD

Cartels, Damages, Economics, Estimation, Germany, Information exchange

(Oxera Consulting LLP)/ /1 Comment

Introduction Cartel damages proceedings are a highly interdisciplinary endeavour between lawyers and economists in many jurisdictions, including Germany. Lawyers and courts in such proceedings must, among other things, answer a fundamentally economic question—namely, what would have been the price in a market absent the infringement? In addition, the European Damages Directive of 2014 has set…

Cartels, Damages, Estimation, Litigation, Presumptions, Private enforcement, Spain

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Introduction The Civil Chamber of the Spanish Supreme Court has already issued forty judgments ruling on appeals against judgments of the Courts of Appeal on claims for damages caused by the truck cartel. The Courts of Appeal have now handed down 4315 rulings on compensation for more than 25,000 cartelized trucks, 95% of them (partially)…

Cartels, Collective Redress, Damages, Germany, Principle of Effectiveness, Regulation

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Introduction Last week, Advocate General Maciej Szpunar delivered his Opinion in case C-253/23, a preliminary reference that stems from a form of collective private enforcement of competition law in Germany called the ‘assignment model’. This type of litigation is based on the fiduciary assignment of claims from a high number of persons or companies who…

Cartels, Damages, Disclosure, European Court of Justice, European Union, Principle of Effectiveness

(University of Göttingen, Germany) and (University of Vienna, Austria)/ /Leave a comment

In recent years, the landscape of antitrust damages actions in the European Union has evolved significantly, guided by landmark rulings from the Court of Justice of the European Union (CJEU). Our recent paper provides a comprehensive overview of these developments as part of the Yearbook on Procedural Law of the Court of Justice of the…

Cartels, Damages, Economics, Estimation, Spain

(IE Law School)/ /1 Comment

Introduction Nowadays, it is not uncommon for Spanish courts to have to rule on disputes where there is uniformity in the facts and the applicable legal rules. In civil courts, mass litigation arose as a result of nullity suits filed by consumers in banking and financial matters regarding contracts for the subscription of banking products…

Automotive, Cartels, Information exchange, Türkiye

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Introduction There has always been a thin line between legitimate market research and potentially anticompetitive information exchanges. Caselaw on such matters is of a particular importance. On 01 January 2023, a preliminary inquiry into several undertakings active in the light and medium class and heavy commercial vehicles market[1] was initiated to determine whether these undertakings…

Cartels, Damages, Estimation, Germany, Private enforcement

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“The estimated damage cannot be less than 5% of the purchase price paid for reasons of effectiveness under EU law.” This was recently stated by the German Federal Court of Justice about claims for damages due to the Dieselgate scandal. However, the Court’s reasoning in favour of this legal lower limit for damages might equally,…

Cartels, Germany, National competition authorities (NCAs), National court, Private enforcement

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Introduction In the latest Judgement by the German Federal Court of Justice (FCJ) regarding Section 33g of the Act against Restraints of Competition (“ARC”) in BGH, Urt. v. 4.4.2023, KZR 20/21 – Vertriebskooperation im Schienenpersonennahverkehr (“Judgement”), which was added by the 9th Amendment of the ARC in 2017 and revised by the 10th Amendment of…

Anticompetitive agreements, Cartels, Competition enforcement, Damages, Economics, Estimation, Evidence, National court, Private enforcement, Spain

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Introduction Three weeks ago, the Spanish Supreme Court delivered its first rulings on damages claims in the trucks cartel. Given that Spanish courts have been the most active in the EU on this case (see the stream of judgments issued by the Courts of Appeal in Figure 1, 85% are available at CENDOJ), there was…

Cartels, Damages, United Kingdom

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On February 7, the Competition Appeals Tribunal (CAT) delivered its first judgment on the merits of the claims for damages concerning the cartel of truck manufacturers ([2023] CAT 6). The judgment resolves the first two processes against DAF Trucks NV that had been initiated by Royal Mail and British Telecom (1284/5/7/18 (T) and 1290/5/7/18 (T))…