Competition Infringement Damages Actions : Ruling in Skanska (C-724/17) Provides Clarifications on Who is Liable

Abstract

Damages disputes related to breaches of EU competition law are heard by Member State courts that apply a combination of EU and national law to these cases. Recently, the European Court of Justice handed down a preliminary ruling concerning who is liable to compensate harm caused by competition infringements (Skanska (C-724/17)). Importantly, the ruling confirms that EU competition law, and not national legislation, dictates which legal entities are responsible for damages. Moreover, the ruling indicates that the broadly interpreted concept of “undertaking” and the principle of economic continuity—traditionally discussed in the sphere of public enforcement of EU competition provisions—are also relevant in the context of private law claims. These clarifications are invaluable, because the issue of those liable for damages has not previously been addressed in a detailed manner, and the extent to which EU law, as opposed to national rules, governs this area has not been clear. This contribution explores the Skanska ruling and its theoretical and practical implications.