A Cartel's Umbrella Effectt and the Right to Claim Damages for Falling under Its Shadow: What Does It Change for the Private Enforcement of EU Competition Law?

Abstract

In June 2014 the CJEU has delivered its ruling in Kone establishing that victims of harm resulting from the ‘umbrella effects’ caused by an infringement of Article 101 TFEU have the right to claim compensation before national courts. The present thesis examines the theoretical and practical importance of this judgement, with the aim to demonstrate to what extent and in what manner it may contribute to the ongoing process of building up of effective private enforcement system of EU competition rules. The first part of the thesis, in order to properly analyse the significance of the judgement in the context in which it has appeared, briefly outlines the historical development of the right to claim antitrust damages under EU law. For the purpose of better understanding of the main issues related to the recognition of ‘umbrella claims’ it also examines the typical situations in which the ‘umbrella pricing’ phenomenon may occur.The second part of the thesis first addresses the concept of ‘causation’, which is of crucial importance for the effective exercise of the right to claim damages, and presents the way in which it has been examined by the CJEU in Kone and by AG Kokott in her Opinion in the case.Finally, the focus of the thesis shifts to the potential practical consequences of the recognition of the ‘umbrella effect’ theory for private claimants and cartelized undertakings within the context of the recently adopted Directive on antitrust damages actions.