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Summary Private Enforcement

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History of private enforcement Follow on actions and stand alone actions Who can claim? Assessing Damages Enforcement in the UK and EU

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  • June 3, 2018
  • 15
  • 2017/2018
  • Summary
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By: shadalemiller97 • 4 year ago

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MarkC57
Private Enforcement:
 Increasing private enforcement of CL has been policy goal of the EC +
OFT.
 Evidence there is much less use of private litigation in the UK + Europe
than in the US.
Antitrust Private US % Private
Cases
2011 475 452 23 95
2010 544 523 21 96
2009 812 792 20 98
2008 1318 1287 31 98
2007 1038 1018 20 98

 On average, there are around 800 private actions per year + private
actions make up over 95% of the federal courts work.
 There are no equivalent databases for the UK courts nor for antitrust
enforcement in EU.
 Impression is that activity in the UK is very limited, perhaps between
10-20 cases per year, but that this may not be representative of the
situation in the rest of Europe as Peyer found signifcant activity in
Germany.
 If true that there is less activity in the EU - historical legacy of a
centralised system.
 Bringing such cases is costly, problems obtaining necessary
information, proving a case may be difcult+ there a number of
uncertainties in relation to the law.
 Rationale behind policy of trying to encourage private actions broadly
twofold.
o First the public authorities, OFT + EC inevitably have limited
resources + information. Enforcement eforts will have to
focus on a limited number of cases. Actions by private parties
can be valuable supplement to this enforcement activity, which
will raise the chances of detection of anti-competitive activity.
Private parties will have their own motivation, which is not
necessarily aligned to the public interests.
o Secondly, although anti-competitive action damages people, public
enforcement does not provide compensation for that
damage. Without some form of private action, they would not
obtain compensation. Justification is essentially a rights based
one.
 Three types of litigants can be distinguished: competitors, customers
and consumers.
 The incentive on competitors to take an action against anti-competitive
behaviour is obvious, they are being damaged by the conduct or the
agreement + want it to stop. It may, however, be in the interests of a
competitor to use competition law to try and disrupt business strategy
of a rival regardless of their efects on competition.
 Customers are those undertakings that buy inputs from other
undertakings, that is, they are in a vertical relationships with those
other undertakings that are involved in the anti-competitive behaviour.

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