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15 October 2021

The Court of Justice of the European Union states that Subsidiaries may be liable for Parent Company infringement of Competition Law

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Introduction

It is well known that a parent company can be fined if a subsidiary under its control infringes the prohibition of anti-competitive agreements as set out in the Treaty on the Function of European Union No 2012/C 326/01 (“TFEU”). Such has been stated in earlier EU judgments regarding this matter.

On the opposite, it has been unclear, whether the same would apply in a situation where the parent company has infringed the antitrust regulation and if the subsidiary could then become liable for the parent company’s committed infringements. In a recent decision, the Court of Justice of the European Union (The EU Court) concluded that the subsidiary can be liable in such a situation.

Pernille Nørkær

Partner

+45 30 37 96 40

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Jeanette Kjeldgaard Rasmussen

Senior Associate

+45 30 37 96 44

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Patricia Rasch

Associate

+45 30 37 96 94

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