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
Date Written: March 2018
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: Suggested Citation