Cartel damage - a comparative analysis with a particular focus on volume effects along the supply chain

• Applicant: Professorin Dr. Franziska Weber
• Subject Area: Private Law
• Term: Funded in 2019
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 418838334

Cartel damage constitutes a particular challenge for private law enforcement. This is true for cartel damage as a whole but in particular for damage resulting from volume effects along a cartel’s supply chain. They constitute the damage that purchasers suffer in terms of lost profits due to a reduction in demand when they have to increase their own prices (due to the cartel overcharge). Regarding volume effects there is a clear research gap. They are often neglected in legal proceedings even though from an economic point of view such damage can be substantial. The main objective of the Cartel Damages Directive 2014/104/EU is the attainment of "full compensation". It, thereby, focuses on damage resulting from the overcharge paid. However, it neglects the dimension of loss of profit resulting from a volume effect whenever the overcharge was passed on making it sound as if this damage component could be claimed easily and also independently from other damage components. It remains very superficial when it comes to the need to coordinate proceedings that concern interlinked damage components (overcharge, pass-on, volume effect). Thereby, the Directive places the responsibility to implement an effective damages regime largely in the hands of the individual Member States. It provides them with a certain freedom as to such implementation. Hence, the laws in a number of promising European Member States shall be analysed to understand if they were capable of implementing an effective enforcement system that pays sufficient attention to volume effects.A comparative study on Dutch competition law, as it is suggested here, forms part of a broader research project (in the context of a Habilitation) that seeks to carry out a comparative legal analysis and on top an economic analysis to evaluate the different legal solutions. Aside of the Netherlands, Germany and Spain were selected as promising candidates.The entire project is highly timely and urgent to enhance the effectiveness of the rather recently implemented Cartel Damages Directive. There is a lot to improve when it comes to private enforcement of competition law – rather few experiences have been gathered in Europe in this regard. Interdisciplinary research has a clear added value, however, it is far from being the rule.

• DFG Programme: Research Fellowships
• International Connection: Netherlands
• Participating Institution: Universiteit Leiden; Rechtsgeleerdheid; Instituut voor Privaatrecht
• Host: Professor Dr. Willem van Boom