Corporate Governance

Antitrust/Competition Law Changes In Play Across The Pond

By Michael Buchman

In the European Union, competition law is enforced across the member states by the Directorate of Competition (DG-IV).  In the U.S., the antitrust laws are enforced by the Department of Justice, Antitrust Division. State and private atorneys? general. 

Class actions are routinely employed as a vehicle by private attorneys? general to recoup damages on behalf of those business and consumers injured by anticompetitive conduct. 

In the EU, there is no class action device which can be used to recover damages for businesses and consumers.  Over the past five years, strong statements by EU officials suggested that the EU would create a class action device in the near future.  Notably, the former head antitrust enforcement official of the EU, Mario Monte, stated in April 2004 that he hoped to promote the development of ?US style class actions? in Europe to supplement government enforcement powers. 

Last year, the EU took a bold step forward in this effort. In April, 2008, the EU provided a White Paper recognizing the need to create collective redress mechanisms for the benefit of businesses and consumers injured by competition law violations. Click here for a copy of the White Paper.  

Three months ago, the European Parliament issued a resolution supporting the White Paper. Click here for the Resolution. 

Mario Monte?s hope for ?US style class actions? in Europe appears to be one step closer to becoming a reality.

Full post as published by PomTalk on June 04, 2009 (boomark / email).