The Concept of Causal Link Within the Scope of Compensation for Cartel Damages and the 'Umbrella Effect': A Discussion in Light of the CJEU's Kone Decision

Gönenç Gürkaynak, The Academic Gift Book of ELIG, Attorneys-at-law in Honor of the 20th Anniversary of Competition Law Practice in Turkey, 1-27 (2018)

37 Pages Posted: 22 May 2018

See all articles by Gonenc Gurkaynak

Gonenc Gurkaynak

ELIG Gürkaynak Attorneys-at-Law

Görkem Yardım

ELIG, Attorneys-at-Law

Gülce Korkmaz

ELIG, Attorneys-at-Law

Date Written: March 2018

Abstract

In June 2014, the Court of Justice of European Union (“CJEU”) resolved an important debate on whether the damages arising from the “umbrella effects” of cartel actions may be claimed for compensation by umbrella customers. In its Kone ruling, the CJEU declared that victims of harm resulting from umbrella pricing policies have the right to pursue compensation for damages before national courts. The umbrella effect, which results from the undertakings outside the cartel raising their prices in line with the firms within the cartel, are explained and analyzed in detail in this article. Accordingly, the concept of causal link and its reflections in the EU, U.S. and Turkish competition law are discussed in depth, with a special focus on CJEU’s Kone decision.

Keywords: causal link, Kone decision, umbrella effects, damages, CJEU, competition law, antitrust

JEL Classification: K21, L40, L41

Suggested Citation

Gurkaynak, Gonenc and Yardım, Görkem and Korkmaz, Gülce, The Concept of Causal Link Within the Scope of Compensation for Cartel Damages and the 'Umbrella Effect': A Discussion in Light of the CJEU's Kone Decision (March 2018). Gönenç Gürkaynak, The Academic Gift Book of ELIG, Attorneys-at-law in Honor of the 20th Anniversary of Competition Law Practice in Turkey, 1-27 (2018), Available at SSRN: https://ssrn.com/abstract=3174410

Gonenc Gurkaynak (Contact Author)

ELIG Gürkaynak Attorneys-at-Law ( email )

Çitlenbik Sokak No:12
Yıldız Mahallesi
Istanbul, Beşiktaş 34349
Turkey

Görkem Yardım

ELIG, Attorneys-at-Law ( email )

Çitlenbik Sokak No:12
Yıldız Mahallesi
Istanbul, Beşiktaş 34349
Turkey

Gülce Korkmaz

ELIG, Attorneys-at-Law ( email )

Çitlenbik Sokak No:12
Yıldız Mahallesi
Istanbul, Beşiktaş 34349
Turkey

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
35
Abstract Views
200
PlumX Metrics