Class actions are among the most
powerful legal tools available in the US to enforce competition rules. With more
than 75 years of experience, the American system offers valuable lessons about
the benefits and drawbacks of class actions for private enforcement in
competition law. Once believed of
as only a US phenomenon, class actions are slowly becoming reality in the EU. After the
adoption of the Directive on damages
actions in November 2014, the legislative initiative in collective redress
(which could prescribe a form of class actions) is expected in 2017.[1]
Some
pro-active Member States have already taken steps to introduce class actions in
some fashion, like, for example, Germany.
What
is a class action? It is a lawsuit that allows
many similar legal
claims with a common interest to be bundled into a single
court action. Class actions facilitate
access to justice for potential claimants, strengthen the negotiating power and
contribute
to the efficient administration of justice. This legal mechanism
ensures a possibility to claim cessation of
illegal behavior (injunctive relief) or to claim compensation for damage
suffered (compensatory relief). More...
The European
Commission’s competition decisions in the area of sport, which set out broad
principles regarding the interface between sports-related activities and EU
competition law, are widely publicized. As a result of the decentralization of
EU competition law enforcement, however, enforcement activity has largely
shifted to the national level. Since 2004, national competition authorities
(NCAs) and national courts are empowered to fully apply the EU competition
rules on anti-competitive agreements (Article 101 TFEU) and abuse of a dominant
position (Article 102 TFEU).
Even though
NCAs and national courts have addressed a series of interesting competition
cases (notably dealing with the regulatory aspects of sport) during the last
ten years, the academic literature has largely overlooked these developments.
This is unfortunate since all stakeholders (sports organisations, clubs,
practitioners, etc.) increasingly need to learn from pressing issues arising in
national cases and enforcement decisions. In a series of blog posts we will
explore these unknown territories of the application of EU competition law to
sport.
In this second installment of this blog series, we discuss a recent
judgment of the regional court (Landgericht) of Dortmund finding that the
International Handball Federation (IHF)’s mandatory release system of players
for matches of national teams without compensation infringes EU and German
competition law.[1] More...