Avvocato Stefano Brustia a Roma

Stefano Brustia

"Avvocato di diritto commerciale", "Avvocato franchising", "Avvocato dello sport"

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Compensation for Antitrust Violations in the Italian Legal System: Probative Value, Damage Quantification Criteria, and Jurisdictional Competence

Scritto da: Stefano Brustia - Pubblicato su IUSTLAB

Pubblicazione legale:

Introduction

The Italian legal system provides a crucial mechanism for compensating parties harmed by anti-competitive practices, including cartels, abuse of dominant position, and other conduct that violates competition law. This mechanism serves an important function in protecting the interests of those adversely affected by such practices. In Italy, such actions are governed by civil law, yet they intersect with decisions made by antitrust authorities, such as the Italian Competition Authority (hereinafter referred to as "AGCM"). These authorities play a crucial role in determining the existence of violations.

Probative Value of Antitrust Authority Decisions in the Italian Context

In Italy, decisions by antitrust authorities, such as the AGCM, that establish a violation of competition law are of significant probative value in civil proceedings for damages. In particular, Italian legislation, in accordance with Directive 2014/104/EU, transposed by Legislative Decree No. 3 of 19 January 2017, stipulates that infringements established by a national competition authority are to be regarded as conclusively proven for the purpose of civil compensation claims. This principle confers binding effect upon AGCM decisions in civil courts, thereby reducing the necessity for the issue of the violation to be re-examined during civil proceedings.

This probative value simplifies the process for the injured party, who is no longer required to prove the existence of the violation but can instead focus on demonstrating the damage suffered and the causal link between the violation and the economic harm. However, the antitrust authority's decision does not exempt the injured party from the burden of proving the extent of the damage and the causal connection to the violation, which can still present significant challenges, especially in the absence of clear damage quantification.

Criteria for Damage Quantification and Simplifications in Cartel Cases

The process of quantifying damages resulting from antitrust violations is typically complex, as it necessitates the reconstruction of a counterfactual scenario. This is defined as the economic situation that would have materialised in the absence of the violation in question. Nevertheless, in instances of price-fixing cartels, the process of quantifying damages may be comparatively less complex than in other instances of antitrust violations. In such cases, the damage often takes the form of an overcharge paid by consumers or businesses due to the collusive agreement among cartel participants.

In particular, the damages incurred can be calculated by comparing the actual price paid with the price that would have been paid in a competitive market. Although this type of analysis still necessitates technical expertise, it is more straightforward than in other situations where the damage is less evident or more challenging to isolate. To illustrate, in instances of price-fixing cartels, the immediate consequence of the infraction is the artificial elevation in prices, which renders it more straightforward to ascertain the injury sustained by those who procured goods or services at augmented costs.

Nevertheless, even in these instances, certain challenges may emerge. For example, it may be challenging to ascertain the precise amount of the overcharge paid, particularly in complex markets or instances where prices are influenced by multiple factors. Furthermore, the quantification of damages may be complicated by the necessity to account for the pass-on of the overcharge along the distribution chain. In some cases, the overcharge may have been passed on to final consumers, which would serve to reduce the damage suffered by intermediate businesses.

Joint Liability of Cartel Participants

A significant aspect of cartel cases is the potential for seeking damages not only from the company with which the injured party had business dealings, but also from all companies participating in the cartel. This principle is based on the collective nature of the liability of companies involved in a cartel. In such cases, all companies participating in the anti-competitive agreement are jointly and severally liable for the damage caused, regardless of whether the injured party had direct dealings with all or only some of them.

In other words, the injured party is entitled to seek compensation from any cartel participant, even in the absence of direct commercial relations with that company. This principle is based on the premise that all companies involved in the cartel contributed, through their collusive conduct, to the distortion of the market and the consequent harm to consumers or other businesses. Consequently, each company can be held liable for the entire damage suffered by the injured party, leaving the cartel participants to seek recourse among themselves through contribution actions.

Competent courts for antitrust claims in Italy

In Italy, actions for damages arising from antitrust infringements can be brought before ordinary civil courts. The territorial jurisdiction depends on the place where the damage occurred or on the domicile of the defendant. However, in the case of civil disputes relating to competition law infringements, the law provides that these cases should be brought before courts with specialised sections for commercial matters, the so-called "Tribunali delle Imprese". These specialised commercial courts are located only in the the main Italian cities and have exclusive jurisdiction over any disputes pertaining to competition, company law and intellectual property.

Statute of Limitations for Antitrust Compensation Claims

In the context of antitrust violations, the statute of limitations for initiating a compensation claim is five years. Nevertheless, the starting point for the limitation period may differ depending on the circumstances. In particular, the limitation period commences upon the moment the injured party becomes aware, or should have become aware, of the violation and the damage sustained.

In follow-on actions, that is to say, those that follow a decision by an antitrust authority, the statute of limitations may only commence on the date on which the AGCM's decision becomes final. This enables those who have sustained losses as a result of anti-competitive practices to pursue compensation claims even several years after the violation occurred. This is because such practices are often only uncovered following lengthy and complex investigations.

Conclusions

The compensation of damages resulting from antitrust violations in the Italian legal system, particularly in cases of price-fixing cartels, represents a crucial instrument for the protection of businesses and consumers who have sustained harm as a consequence of anti-competitive practices. The probative value of decisions by antitrust authorities, such as the AGCM, facilitates compensation claims. Furthermore, the collective liability of cartel participants allows injured parties to seek damages from any of the companies involved, regardless of direct commercial relations. However, the quantification of damages and the determination of the statute of limitations can present challenges that require careful legal and economic analysis. 

Stefano Brustia - Lawyer at the Rome Bar


Avv. Stefano Brustia - "Avvocato di diritto commerciale", "Avvocato franchising", "Avvocato dello sport"

L'avvocato Brustia si è laureato con pieni voti presso l'Università degli Studi di Pavia nel 2000. È iscritto all'Albo degli Avvocati di Roma dal 2004. Opera prevalentemente nell'ambito del diritto commerciale, immobiliare e del diritto dello sport. Ha inoltre maturato una significativa esperienza nel settore degli arbitrati, assistendo come avvocato clienti italiani e stranieri in procedimenti arbitrali internazionali (ICC, TAS e CAM).




Stefano Brustia

Esperienza


Franchising

In ambito giudiziale, fornisco soprattutto assistenza a ex franchisee; in ambito stragiudiziale, ho pure curato la predisposizione di contratti di affiliazione commerciale per imprese operanti nei settori della ristorazione, abbigliamento ed intermediazione immobiliare.


Diritto immobiliare

Fornisco assistenza e consulenza legale a privati e/o imprese su questioni relative all'ambito immobiliare. In questo specifico settore, nel corso dell'ultimo anno, sono stato coinvolto soprattutto nel contenzioso legato ai c.d. bonus edilizi sto assistendo assistendo soprattutto privati e condomini nelle dispute contro "general contractor", imprese edili e professionisti che non hanno correttamente adempiuto agli impegni contrattuali da loro assunti verso la committenza.


Diritto dello sport

Come avvocato, note personalità del mondo dello sport e primarie istituzione sportive in contenziosi davanti al Tribunale Arbitrale dello Sport di Losanna e altri importanti organi di giustizia delle federazioni sportive internazionali (la International Court of Appeal della FIA, il Basketball Arbitral Tribunal della FIBA, la International Court of Appeal della UIM, ecc.).


Altre categorie:

Antitrust e concorrenza sleale, Marchi, Contratti, Tutela del consumatore, Diritto civile, Diritto di famiglia, Eredità e successioni, Separazione, Divorzio, Diritto commerciale e societario, Proprietà intellettuale, Recupero crediti, Diritto internazionale ed europeo, Diritto condominiale, Locazioni, Sfratto, Incidenti stradali, Malasanità e responsabilità medica, Diritto ambientale, Arte e beni culturali, Industria dell'intrattenimento, Diritto dell'informatica, Risarcimento danni.



Referenze

Caso legale seguito

Dichiarato nullo contratto di franchising con conseguente accoglimento della domanda di restituzione dell'importo versato a titolo di entry fee

Tribunale di Palermo, sentenza n. 713/2022

Il Tribunale di Palermo ha accolto le domande che avevo proposto per una piccola impresa che aveva incautamente sottoscritto un contratto di affiliazione commerciale che non forniva una precisa indicazione degli investimenti necessari ad avviare l'attività commerciale in franchising e che risultava altresì carente nella specificazione del know-how. Il contratto è stato dichiarato nullo ed il franchisor è stato condannato a restituire alla mia cliente l'importo versato a titolo di entry fee (€ 24.400), oltre interessi e spese legali.

Pubblicazione legale

Compensation for Antitrust Violations in the Italian Legal System: Probative Value, Damage Quantification Criteria, and Jurisdictional Competence

Pubblicato su IUSTLAB

Introduction The Italian legal system provides a crucial mechanism for compensating parties harmed by anti-competitive practices, including cartels, abuse of dominant position, and other conduct that violates competition law. This mechanism serves an important function in protecting the interests of those adversely affected by such practices. In Italy, such actions are governed by civil law, yet they intersect with decisions made by antitrust authorities, such as the Italian Competition Authority (hereinafter referred to as "AGCM"). These authorities play a crucial role in determining the existence of violations. Probative Value of Antitrust Authority Decisions in the Italian Context In Italy, decisions by antitrust authorities, such as the AGCM, that establish a violation of competition law are of significant probative value in civil proceedings for damages. In particular, Italian legislation, in accordance with Directive 2014/104/EU, transposed by Legislative Decree No. 3 of 19 January 2017, stipulates that infringements established by a national competition authority are to be regarded as conclusively proven for the purpose of civil compensation claims. This principle confers binding effect upon AGCM decisions in civil courts, thereby reducing the necessity for the issue of the violation to be re-examined during civil proceedings. This probative value simplifies the process for the injured party, who is no longer required to prove the existence of the violation but can instead focus on demonstrating the damage suffered and the causal link between the violation and the economic harm. However, the antitrust authority's decision does not exempt the injured party from the burden of proving the extent of the damage and the causal connection to the violation, which can still present significant challenges, especially in the absence of clear damage quantification. Criteria for Damage Quantification and Simplifications in Cartel Cases The process of quantifying damages resulting from antitrust violations is typically complex, as it necessitates the reconstruction of a counterfactual scenario. This is defined as the economic situation that would have materialised in the absence of the violation in question. Nevertheless, in instances of price-fixing cartels, the process of quantifying damages may be comparatively less complex than in other instances of antitrust violations. In such cases, the damage often takes the form of an overcharge paid by consumers or businesses due to the collusive agreement among cartel participants. In particular, the damages incurred can be calculated by comparing the actual price paid with the price that would have been paid in a competitive market. Although this type of analysis still necessitates technical expertise, it is more straightforward than in other situations where the damage is less evident or more challenging to isolate. To illustrate, in instances of price-fixing cartels, the immediate consequence of the infraction is the artificial elevation in prices, which renders it more straightforward to ascertain the injury sustained by those who procured goods or services at augmented costs. Nevertheless, even in these instances, certain challenges may emerge. For example, it may be challenging to ascertain the precise amount of the overcharge paid, particularly in complex markets or instances where prices are influenced by multiple factors. Furthermore, the quantification of damages may be complicated by the necessity to account for the pass-on of the overcharge along the distribution chain. In some cases, the overcharge may have been passed on to final consumers, which would serve to reduce the damage suffered by intermediate businesses. Joint Liability of Cartel Participants A significant aspect of cartel cases is the potential for seeking damages not only from the company with which the injured party had business dealings, but also from all companies participating in the cartel. This principle is based on the collective nature of the liability of companies involved in a cartel. In such cases, all companies participating in the anti-competitive agreement are jointly and severally liable for the damage caused, regardless of whether the injured party had direct dealings with all or only some of them. In other words, the injured party is entitled to seek compensation from any cartel participant, even in the absence of direct commercial relations with that company. This principle is based on the premise that all companies involved in the cartel contributed, through their collusive conduct, to the distortion of the market and the consequent harm to consumers or other businesses. Consequently, each company can be held liable for the entire damage suffered by the injured party, leaving the cartel participants to seek recourse among themselves through contribution actions. Competent courts for antitrust claims in Italy In Italy, actions for damages arising from antitrust infringements can be brought before ordinary civil courts. The territorial jurisdiction depends on the place where the damage occurred or on the domicile of the defendant. However, in the case of civil disputes relating to competition law infringements, the law provides that these cases should be brought before courts with specialised sections for commercial matters, the so-called " Tribunali delle Imprese ". These specialised commercial courts are located only in the the main Italian cities and have exclusive jurisdiction over any disputes pertaining to competition, company law and intellectual property. Statute of Limitations for Antitrust Compensation Claims In the context of antitrust violations, the statute of limitations for initiating a compensation claim is five years. Nevertheless, the starting point for the limitation period may differ depending on the circumstances. In particular, the limitation period commences upon the moment the injured party becomes aware, or should have become aware, of the violation and the damage sustained. In follow-on actions, that is to say, those that follow a decision by an antitrust authority, the statute of limitations may only commence on the date on which the AGCM's decision becomes final. This enables those who have sustained losses as a result of anti-competitive practices to pursue compensation claims even several years after the violation occurred. This is because such practices are often only uncovered following lengthy and complex investigations. Conclusions The compensation of damages resulting from antitrust violations in the Italian legal system, particularly in cases of price-fixing cartels, represents a crucial instrument for the protection of businesses and consumers who have sustained harm as a consequence of anti-competitive practices. The probative value of decisions by antitrust authorities, such as the AGCM, facilitates compensation claims. Furthermore, the collective liability of cartel participants allows injured parties to seek damages from any of the companies involved, regardless of direct commercial relations. However, the quantification of damages and the determination of the statute of limitations can present challenges that require careful legal and economic analysis. Stefano Brustia - Lawyer at the Rome Bar

Pubblicazione legale

The Application of European Union Competition Law to the Sports Sector

Pubblicato su IUSTLAB

The Application of European Union Competition Law to the Sports Sector Stefano Brustia - Attorney of the Rome Bar 1. Intro The relationship between European Union (EU) competition law and the sports sector has been shaped by several landmark rulings of the Court of Justice of the European Union (CJEU). While sports have a unique cultural and social significance, they are also subject to economic rules, particularly when sporting bodies or federations engage in activities that impact the market. The CJEU has consistently upheld that EU competition law applies to sports when there is a significant economic dimension, and this has led to important limitations on how sports federations can regulate their disciplines. 2. General Overview of EU Competition Law in Sports Under Article 101 and Article 102 of the Treaty on the Functioning of the European Union (TFEU), restrictive agreements between undertakings (Article 101) and the abuse of a dominant position (Article 102) are prohibited. These rules apply to sports organizations when their actions have economic effects that may distort competition within the EU market. While sports federations have significant autonomy in regulating their sports, this autonomy is not without limits, particularly when their rules or decisions restrict competition or access to the market. 3. Key Rulings of the Court of Justice a. Meca-Medina (C-519/04) The Meca-Medina case, decided in 2006, is a cornerstone for the application of EU competition law to the sports sector. In this case, two professional swimmers challenged the anti-doping rules of the International Swimming Federation (FINA) after being suspended for failing drug tests. The athletes argued that the anti-doping rules restricted competition by preventing them from pursuing their professional careers. The CJEU held that sporting rules could fall within the scope of EU competition law if they have an economic impact. However, the Court also recognized that certain restrictions inherent in the organization of sports may be justified, provided they pursue a legitimate objective (such as ensuring the fairness and integrity of competitions) and are proportionate to that objective. In other words, restrictions are permissible if they are necessary for the proper functioning of the sport and do not go beyond what is required to achieve that aim. This case established the two-step test for sports-related rules: Legitimacy : Does the rule pursue a legitimate sporting objective, such as maintaining competitive balance or ensuring athlete safety? Proportionality : Is the rule proportionate to achieving that objective, without unduly restricting competition? b. European Superleague (C-333/21) In the European Superleague case, twelve football clubs from England, Spain, and Italy attempted to create a new competition outside of the established structure governed by UEFA. UEFA and FIFA opposed the initiative, threatening sanctions against the clubs and players involved in the new league. The CJEU ruled that sports federations such as UEFA cannot impose unjustified barriers to entry for new competitions. However, the Court also emphasized that sports federations have a legitimate interest in maintaining the integrity of the sport and protecting existing competitions. The decision clarified that while federations have the authority to regulate sports, they must not abuse their dominant position by imposing disproportionate sanctions or limitations on clubs and players seeking to participate in alternative competitions. c. International Skating Union (ISU) (C-124/21) In the International Skating Union (ISU) case, the governing body for ice skating imposed severe penalties on athletes who participated in events not authorized by the ISU. The CJEU found that these sanctions were disproportionate and constituted a restriction of competition. The ISU’s rules effectively prevented athletes from participating in independent competitions, which constituted an abuse of its dominant position. The ruling stressed that sports federations must provide non-discriminatory access to competitions and that any sanctions imposed on athletes must be proportionate to the objectives pursued. 4. Limitations Imposed on Sports Federations Based on these rulings, sports federations face significant limitations in how they can regulate their respective sports disciplines. The CJEU has established key criteria that federations must follow to ensure compliance with EU competition law: a. Non-Abuse of Dominant Position Many sports federations occupy a dominant position in the market due to their control over the organization and regulation of competitions. The CJEU has made it clear that federations must not abuse this position by imposing unjustified restrictions on athletes, clubs, or other stakeholders who wish to participate in alternative competitions. For example, the ISU case demonstrated that sports federations cannot impose disproportionate sanctions on athletes for participating in unsanctioned events. b. Proportionality and Objective Justification Any restrictions imposed by a sports federation must be proportionate and justified by a legitimate sporting objective. This principle was central in Meca-Medina, where the Court accepted that anti-doping rules serve a valid purpose but emphasized that they must not excessively restrict competition. Similarly, in the European Superleague case, while UEFA's aim of protecting existing competitions was legitimate, any punitive measures against clubs or players must be proportionate to that objective. c. Non-Discriminatory Access to Competitions Federations must ensure non-discriminatory access for athletes, teams, and organizers to participate in competitions. This was underscored in the International Skating Union case, where the CJEU ruled that the ISU’s rules, which prevented athletes from competing in non-authorized events, unfairly restricted competition. Federations are obligated to allow fair participation, provided that athletes or teams meet the necessary sporting criteria. 5. Conclusion The application of EU competition law to the sports sector emphasizes the need for a careful balance between the autonomy of sports federations and the protection of competition within the internal market. While sports federations can impose rules to ensure the integrity of their respective sports, such rules must be proportionate, pursue legitimate objectives, and not create unjustified barriers to competition. The Meca-Medina, European Superleague, and International Skating Union cases have shaped the legal landscape, providing clear guidance on the limitations that sports federations must observe when regulating their disciplines.

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Via Crescenzio 58
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