Sunday 16 July 2017

Commission launches infringement proceedings against seven Member States for failure to implement Damages Directive


The European Commission has sent reasoned opinions to Bulgaria, Cyprus, the Czech Republic, Greece, Latvia, Malta and Portugal asking them to take steps to implement Directive 2014/104 on private damages for infringements of competition law.
The Directive states that it is designed to ensure that “anyone who has suffered harm caused by an infringement of competition law…can effectively exercise the right to claim full compensation”.  The broad aim of the Directive is to address the impediments to the effective enforcement of competition law in the majority of Member States and to establish minimum standards and approaches in the procedural rules.
Member states were required to implement the Directive into their national law by 27 December 2016 but Bulgaria, Cyprus, the Czech Republic, Greece, Latvia, Malta and Portugal have failed to notify the Commission of their domestic transposition measures.
These seven member states now have two months to inform the Commission of measures taken to implement the Directive.  If not, the Commission may bring proceedings against them before the Court of Justice.
Private damages actions are already increasingly common in a number of Member States, for example the UK, Germany and the Netherlands have been the more attractive venues for bringing private claims.  Once implemented it is expected that the Directive will have a considerable impact on the laws in Member States where the system for private enforcement is less developed. 
Yet despite the framework for common EU-wide approaches, it is likely to remain the case for some years at least that certain jurisdictions will provide a more attractive venue for bringing a private damages claim than others. 

MEMO/17/1935, 13 July 2017


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