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Fatima Shahid

EU Court Rules on Group Actions for Cartel Damages

27.01.2025 | Court of Justice of the EU

The Court of Justice of the EU has ruled that national laws preventing group actions for damages caused by cartels may violate EU law if no other collective means exist for claimants.


The Court of Justice of the European Union has delivered a significant judgment in Case C-253/23, addressing the rights of individuals harmed by cartel activities to seek compensation. The ruling emphasizes that EU law allows any person to claim damages for losses resulting from competition law infringements, and it is the responsibility of each Member State to establish the rules governing these claims.

The case arose from a group of thirty-two sawmills located in Germany, Belgium, and Luxembourg, which alleged they suffered financial harm due to inflated prices charged by the Land Nordrhein-Westfalen for roundwood from 2005 to 2019. These sawmills assigned their compensation rights to a legal services provider, ASG 2, which sought to initiate a group action for damages against the Land. However, the Land contested ASG 2's legal standing, citing German legislation that restricts such group actions.

The German court referred the matter to the EU Court to determine whether EU law prohibits national rules that prevent harmed individuals from pursuing group actions. The EU Court clarified that while it does not dictate the specific rules for compensation claims, it mandates that Member States must ensure effective judicial protection for individuals seeking damages. If national laws do not provide alternative collective remedies and individual actions are impractical, the German court must find a way to align its interpretation with EU law.

Ultimately, the ruling underscores the importance of effective legal mechanisms for individuals harmed by anti-competitive practices, reinforcing the principle that EU law must be upheld in national legal systems.

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