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2018 | OriginalPaper | Chapter

The Direct Effect of EU Competition Law: From Regulation No 1/2003 to Directive 2014/104/EU

Author : Marina San Martín-Calvo

Published in: Language and Law

Publisher: Springer International Publishing

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Abstract

This chapter addresses the study of the direct application of Competition Law at European level, as well as the problems that have arisen in practice. The importance of the principle of direct effect of Community legislation, the cornerstone on which European Competition Law is based, is of particular interest. We must not forget that the development of the protective rules of free Competition is at the origin of the European Union, since the Treaty of Rome of 1957. After a brief introduction on the Regulation and the background of private enforcement of Competition Law, the legislative context will be examined. This context will show how Community Law recognises the direct applicability of Competition rules to relations between individuals. These legal texts are mainly Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 Treaty on the Functioning of the European Union and Directive 2014/104/EU of the European Parliament and of the Council of 26 November 2014 on certain rules governing actions for damages under national law for infringements of the Competition Law provisions of the Member States and of the European Union.

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previous chapter The CJEU Case Law After Preliminary Ruling on Behalf of Private Enforcement of EU Competition Law

next chapter Jurisdiction and Applicable Law in Follow-on Actions

Quijano González (2011), p. 479.

The obligation to repair the damage is, from the Roman Law, an effect linked to the harmful event. It derives from the infringed contract, but also from the breach of the obligation expressed in the alterum non laedere principle, regardless of the legal relationship that binds the parties. However, while full nullity is a consequence expressly referred to in Article 101(2) TFEU, the right to be repaired for the damages suffered does not occur automatically Torre Sustaeta (2014), p. 124 ff.

Ortíz Baquero (2011), p. 17.

Olmedo Peralta (2016), p. 392.

Migani (2014), p. 85.

Herrero Suarez (2016), pp. 150–183. The author points out, among a wide access system to the evidence, the treble damages mechanism, which allows the plaintiff to demand three times the amount of damages suffered, plus the reimbursement of a reasonable legal fee. Furthermore, we should consider the importance, in the American system, of the class actions. See Hovenkamp (2011), p. 652.

Casado Navarro (2016), pp. 428–429.

So, while certain national jurisdictions, such as the UK, contains an equivalent requirement already exists under the rules governing civil procedure, for other Member States such an obligation represents a dramatic departure from the standard rules of civil litigation. See Slot and Farley (2017), p. 232.

Tobío Rivas (2016–2017), pp. 84–85.

Case 23/67, SA Brasserie de Haecht [1967] 407,ECLI:EU:C:1967:54.

Case 127/73, BRT [1974] ECR 313, ECLI:EU:C:1974:25.

On a more comprehensive analysis about the CJEU case law, see Jimeno Bulnes, in this book.

Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ 2003 (L1)1).

The new Council Regulation, which came into effect on 1 May 2004, replaces Council Regulation No 17, which has been in force for more than 40 years without significant modification, and which was the key to enforcement in Community Competition law (Council Regulation No 17 of 6 February 1962 (OJ L 13, 21.2.1962, 204/62).

Müller (2004), pp. 721–740.

In this sense, and in relation to the networks of public authorities mentioned above, the Regulation No 1/2003 provided that, in spite of any national provision to the contrary, the exchange of information and the use of such information in evidence should be allowed between the members of the network, even where the information was confidential. The information obtained through the networks could be used for the application of Articles 81 and 82 TEC (now Articles 101 and 102 TFEU), as well as for the parallel application of National Competition Law (Article 11).

Martín Aresti (2014), pp. 21–60.

Case C-453/99, Courage and Crehan [2001] ECR I-6297, ECLI:EU:C:2001:465. In the Courage case, the CJEU stated that the full effectiveness of the Treaty rules would not be achieved without the possibility that any affected party could claim compensation for damages caused by anti-competitive behaviour. See Ruiz Peris (2016), pp. 15–52.

Case C-199/11, Otis and others [2012] ECLI:EU:C:2012:684.

Joined Cases C-295/04 to C-298/04, Manfredi and others [2006] ECR I-6619, ECLI:EU:C:2006:461. This implies, as the judgment of the Manfredi case itself stated, that the compensation received should not casue an unjust enrichment for the damaged party Ruiz Peris (2016), p. 19.

See, inter alia, Velasco San Pedro and Herrero Suarez (2011), pp. 600 ff.

Green Paper of 19 December 2005, Damages actions for breach of the EC antitrust rules [COM(2005) 672 final].

The Court of Justice explicitly recognised their right to do so in its judgment in the Courage case. The CJEU stated that the actual exercise of this right not only enables those who have suffered loss as a result of anti-competitive conduct to be compensated but also helps ensure that the Community Competition rules are fully effective and will deter anti-competitive conduct (paras. 26 and 27).

Background and Objectives of Green Paper 1.1 Damages claims as part of the enforcement system of Community antitrust law. Antitrust rules in Articles 81 and 82 of the Treaty are enforced both by public and private enforcement. Both forms part of a common enforcement system and serve the same aims: to deter anti-competitive practices forbidden by antitrust law and to protect firms and consumers from these practices and any damages caused by them. Private as well as public enforcement of antitrust law is an important instrument to create and sustain a competitive economy.

The White Paper already contains a series of measures aimed at the creation and development of an effective system for the private application of Competition rules in Europe Velasco San Pedro and Herrero Suarez (2011), pp. 593–604.

Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty (OJ L 123, 27.4.2004, p. 18).

Migani (2014), pp. 85 ff.

Herrero Suarez (2016), pp. 150–183.

Calvo Caravaca and Suderow (2015), pp. 114–157.

Cisotta (2014), pp. 81–105.

Casado Navarro (2016), pp. 436 ff.

Martorell Zulueta (2016), pp. 304 ff.

Callol García and Yuste (2015), pp. 297–315.

In any case, the evidence obtained through access to the file of a Competition Authority may only be used in an action for damages (Article 7(3)).

Olmedo Peralta (2014), pp. 107–130; Díez Estella and Estrada Meray (2014), pp. 189–202; Martínez Moriel (2013), pp. 61–74; Fernández et al. (2005), pp. 171–188.

Ordóñez Solís (2015).

European Commission, Damages actions for the breach of antitrust rules (2005) Staff Working Paper, at para. 7. See Canedo Arrillaga (2017), pp. 173–185.

As it is known, civil liability can be contractual, when it arises from a contractual default, or non-contractual, when the responsibility derives from the breach caused by a wrongful behaviour.

It is the central doctrine in Spain’s academic that the liability is essentially non-contractual. In this regard, Ortíz Baquero (2011), pp. 165 ff. Peña López (2002), pp. 213–219; Alonso Soto (2013), pp. 123–133; Díez Estella and Estrada Meray (2014), p. 193; Brokelmann (2013), pp. 104 ff.

See, inter alia, Tribunal Supremo (Sala Civil) (Supreme Court, Civil Section), of 8 June 2012, Acor, Rec. núm. 2163/2009, RJ\2012\9317. This meaningful judgment characterises the responsibility of the defendant as non-contractual.

In Spain, the limitations for bringing actions to demand contractual liability, provided for Article 1.964 Civil Code, which was 15 years, was reduced to 5 years since the fulfillment of the obligation can be demanded, in accordance with modification carried out by Law 42/2015, of reform of the Law of Civil Procedure. On the other hand, the limitations of bringing actions to claim for damages arising from non-contractual liability is, according Article 1.968, 2nd Civil Code, one year since the injured party was aware of the damage suffered. To transpose the Directive into Spanish law, the Royal Decree-Law 9/2017, of May 26, which transposes directives of the European Union in the financial, commercial and health, and on the movement of workers provides, a legal period of five years to the exercise of actions for damages, the infringement of Competition law has ceased and the claimant becomes aware of it (Article 74).

See Ordóñez Solís (2015).

However, concerning interests, the Directive does not clarify whether it refers to compensatory or delay interests, which leads us to think that this lack of unification will lead to forum shopping, in those cases in which the damages are splitted within several Member States.

See Martí Miravalls (2016), pp. 321–338

It is considered that a company could be a small or medium-sized enterprise when its market share in the relevant market was below 5% at any time during the infringement of Competition Law; and the application of the normal rules of joint and several liability would irretrievably jeopardise its economic viability and cause its assets to lose all their value.

Estevan de Quesada (2016), pp. 339–354.

According to Article 14(2) of the Directive, indirect buyers will have to prove that: the defendant has committed an infringement of the Competition Law; the direct buyer suffered a surcharge as a consequence of the infringement, and the indirect buyer has acquired the goods or services affected by the infringement.

Article 3 of the Directive allows the infringer to require, to a reasonable extent, the evidence of the complainant or of third parties.

Estevan de Quesada (2016), p. 348.

As is established by the CJEU Manfredi case, the object of actions for compensation of damages is compensation of the damages actually caused, to be understood both the emerging damage—that is, the loss of assets suffered—and lucrum cessans—that is, the profit lost to be perceived, experienced by the injured party.

Hernández Bataller (2016), pp. 77–98.

Velasco San Pedro and Herrero Suarez (2011), pp. 593–604.

Migani (2014), pp. 9 ff.

Ordóñez Solís (2015).

In other words, in those independent actions that do not derive from previous declarations of infringement by the Competition authorities.

Gómez Asensio (2016), pp. 362–363.

In any case, it should be necessary to consider what is established in article 19(3), in which it is expressly stated where the non-settling co-infringers cannot pay the damages that correspond to the remaining claim of the settling injured party, the settling injured party may exercise the remaining claim against the settling co-infringer.

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Brokelmann H (2013) La Responsabilidad Civil por Infracción de las Normas de Defensa de la Competencia. In: Font i Ribas A, Gómez Trinidad S (eds) Competencia y Acciones de Indemnización. Actas del Congreso Internacional sobre Daños derivados de Ilícitos Concurrenciales. Marcial Pons, Madrid, pp 101–122

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Cisotta R (2014) Some considerations on the last developments on antitrust damages actions and collective redress in the European Union. Competition Law Rev 10:81–105

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Title: The Direct Effect of EU Competition Law: From Regulation No 1/2003 to Directive 2014/104/EU
Author: Marina San Martín-Calvo
Publisher: Springer International Publishing
Book: Language and Law
Print ISBN: 978-3-319-90904-2

Electronic ISBN: 978-3-319-90905-9

Copyright Year: 2018
DOI: https://doi.org/10.1007/978-3-319-90905-9_5