Private enforcement in EC competition law : the Green Paper on damages actions

Abstract

The modernization of the procedural law regarding the application of Article 81 and 82 of the EC Treaty together with the Green Paper on Damages Action for breach of EC Antitrust Rules and the Commission Staff Working Paper form part of the European Union's plan to ameliorate the enforcement of competition law. Both the Green Paper and the Working Paper list a number of barriers to a more efficient system for bringing damages actions for the violation of EC antitrust law and set out various options to solve these issues and possible action to improve damages actions. In the first chapter the writer gives an overview of the current state of affairs as regards damages actions in the EU Member States and the advantages brought about by instituting such an action. Besides strengthening the enforcement of competition rules, damages actions will make it easier for consumers and firms who have suffered damages due to a breach in competition rules to recover their losses from the infringer. Chapter 2 highlights the major obstacles that exist in the current legal systems of the EU as regards private enforcement damages actions. These barriers risk alienating individual firms and consumers in Europe from the competition rules since not all Member States permit the effective protection of rights through a damages claim. Thus, a Study was conducted on behalf of the Commission in order to identify and examine the barriers to a successful damages actions in Member States of the European Union. As a follow up to the Study, the Commission, in December 2005 published the Green Paper on Damages Actions. The options laid down in this Green Paper are examined in Chapter 3. Moreover, the Commission is examining the requisites for private parties to be able to bring a damages action before national courts of Member States for breach of Community Competition rules. Chapter 4 compares and contrasts the U.S.A's and European Union's approach to private enforcement. If the Member States agree on the objectives behind the Green Paper and thus take the necessary steps for facilitating its implementation through follow-up measures, one can state that enforcement of EC competition rules is carried out through both public and private means and to the same extent in all Member States. The possible pathways that might be adopted by the European Union in the near future are discussed in the final chapter.