Tuesday 2 July 2019

European Commission published guidelines on how to estimate overcharge in passing on cases


European Commission published guidelines on how to estimate overcharge in passing on cases

The European Commission has published guidelines for the national courts on estimation of the share of overcharge as a result of a breach of EU competition law in passing on cases.  The Commission was obliged to publish such guidelines under Article 16 of Directive 2014/104 (the Damages Directive) and the final guidelines follow consultation on a draft last year.

The Damages Directive is based on the principle of full compensation for anyone harmed by a cartel, regardless of whether they are direct or indirect purchasers.

The guidelines set out practical guidance on estimation of the difference between the price actually paid and the price that would otherwise have prevailed in the absence of the infringement.

They also set out the economic principles underlying passing-on and different methodologies  for quantifying the effects (price and volume related) of passing-on.

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