EU competition law principles on undertakings liable for fines also apply in the context of liability for damages

In a preliminary ruling request made by the Finnish Supreme Court on the question of the relevant entities liable for damages, the Court of Justice of the EU (CJEU) held that principles applied in order to determine the relevant entities for liability for fines under Articles 101 and 102 TFEU (and in particular the successor liability principle) should also be applied to determine the relevant entities liable for damages under private damages claims. The CJEU held that the determination of the entity that may be held liable for compensation is governed by the definition of "undertaking" under EU law, as the right to claim damages for breach of the competition rules is an integral part of the enforcement of EU competition law.

The CJEU therefore held that in a case like this case, where all the shares in the companies which participated in the cartel were acquired by other companies which dissolved the former companies and continued their commercial activities (i.e. successor companies), the acquiring companies may be liable for the damage caused by the cartel on the basis of the successor liability principle.

Read the full briefing here.

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