Has your business suffered harm because another company breached the rules on fair competition? If so, you may be entitled to claim compensation from that company. For example, this may be the case if you paid excessive prices as a result of cartel agreements. On this page, we explain what steps you can take and what you should pay attention to.
Compensation for distortion of competition
When can you claim compensation?
You can claim compensation before the civil court if you have suffered financial harm because a company:
- Engaged in prohibited price- fixing agreements (for example, in a cartel); or
- Abused a dominant market position.
Example:
You purchased products from a company that had made agreements with its competitors on prices or market sharing. As a result, you probably paid more than you should have.
Seek legal assistance
A compensation claim is often legally and financially complex. Make sure you obtain proper advice. You may seek assitance from:
- A lawyer or legal adviser with expertise in competition law.
- A trade association.
- Other business representative organizations.
Together, you are stronger
If several businesses or consumers have suffered harm as a result of the same conduct, you may take action together. This has advantages: you are in a stronger position vis-a-vis the infringing party, you can reach a settlement or file a claim jointly, and you can share legal and financial costs.
Consult first, then go to court
You may first contact the company that violated the rules and try to find a solution together, for example by:
- Having the infringement brought to an end, if it is still ongoing.
- Making arrangements regarding compensation.
If this is unsuccessful, you may bring the matter before the court in order to:
- Request an injunction against the infringement.
- Obtain (financial) compensation.
You will need a lawyer for court proceedings.
What do you need to prove?
Before the court, you must prove three things:
- That the company breached the rules
For example, through cartel agreements or abuse of a dominant position. A prior decision of AFTA may assist as evidence in this regard (see below). - That you suffered harm
Such as higher prices, lost profits, or lost revenue. - That there is a causal link between the infringement and your harm
You must show that the violation caused your loss.
Please note:
The opposing party may argue that you passed on the damage to your customers. A legal adviser can help you properly substantiate your claim.
Use an AFTA decision as evidence
If the AFTA has already established that a company breached the competition rules, you may use this decision as evidence in court proceedings. This makes it easier
to support your case. However, you must still independently prove that you suffered harm and the financial extent of that harm.
Important:
An AFTA fine is not compensation. The company remains liable for the damage you have suffered.
