CJEU: Strengthening the right to reparation for victims of anti-competitive practices
In a decision of 28 January 2025, the CJEU ruled that national regulation preventing victims of anti-competitive practices from transferring their rights for a group action is not in conformity with Union law if the individual action is impossible or excessively difficult.
In a decision of 28 January 2025, the CJEU ruled that national regulation preventing victims of anti-competitive practices from transferring their rights for a group action is not in conformity with Union law if the individual action is impossible or excessively difficult.
The decision of the CJEU of 28 January 2025 was issued following a preliminary question by a German court. The latter was seized of a follow-up action, brought by the company ASG2 acting under the rights that 32 victims of a cartel had assigned to it. The Land, the author of the anti-competitive practice, challenged the standing of ASG 2, arguing that the German law on extrajudicial legal services did not allow such a remedy in competition law cases.
Interpretation of European Union law in the face of anti-competitive practices
The question referred to the CJEU for a preliminary ruling concerned the interpretation of European Union law, in particular Articles 101 TFEU, 47 of the Charter of Fundamental Rights, and Articles 2, 3 and 4 of Directive 2014/104. The Court had to determine whether national regulation preventing victims of anti-competitive practices from assigning their rights of redress to a legal service provider for a collective action was in conformity with Union law.
The CJEU replied in the negative: Union law precludes such national legislation if it does not provide for any other possibility of grouping individual claims and if the exercise of individual action is impossible or excessively difficult. The Court stressed that the right to full reparation must be effective and that Member States must ensure adequate remedies.
Impact of the decision on the fight against anti-competitive practices
The CJEU decision reinforces the principle of effectiveness of the right to compensation in competition matters and is an important step towards better protection of victims of anti-competitive practices. It obliges Member States to adapt their national regulations to allow for group actions where necessary to ensure effective access to justice, while leaving some flexibility in the application of these principles.
However, it raises questions about how national courts will interpret and apply these requirements, which may require further legislative and regulatory adjustments. Indeed, it lacks clarity as to the notion of “excessively excessive individual action”. It thus leaves a margin of appreciation to national courts to assess whether an individual action is excessively difficult. This assessment may vary according to national contexts, which could lead to divergences in the application of Union law.
Influence of the decision on group actions in France
In France, this decision could influence the ongoing reforms regarding group action. It stresses the need for mechanisms to group individual claims, especially in cases of low-value damage but involving a large number of people.
(Court of Justice of the EU (CJEU) of 28 January 2025)
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Gouache Avocats advises you on the legality of your agreements and practices with regard to French and Community competition regulations and in the implementation of compliance programs within your company.
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Gouache Avocats accompanies you to assess your risk and defend yourself.
Gouache Avocats advises you on the legality of your agreements and practices with regard to French and Community competition regulations and in the implementation of compliance programs within your company.
Gouache Avocats also assists companies in proceedings initiated by the Competition Authority or the European Commission (request for information, visits and seizures, leniency proceedings, settlement, commitments), litigation before national and Community courts and assists companies wishing to complain of possible anti-competitive agreements in their sector of activity.
Gouache Avocats accompanies you to assess your risk and defend yourself.
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