Politics

Victims of price fixing can now seek redress in the courts

Those who have suffered because of price fixing can now seek justice; guilty parties can be sentenced on the basis of a claim for damages. On May 21, the European Court handed down a ruling to the effect that anyone who has suffered damage because of an illegal cartel can lodge a claim for compensation with the court in any place where any one of the participants of the cartel has its headquarters. The relinquishment of the pursuit of a judicial ruling by any individual plaintiff against any individual defendant whose residence falls under the court’s jurisdiction shall have neither bearing nor prejudice on any claims for compensation lodged against other participants. In addition to being too burdensome, hearing the trials separately would have risked divergent rulings. Those who have been damaged by artificially high prices now have improved chances of redress. Furthermore, the European Court has ruled that the clauses on jurisdiction and arbitration in a contract will not be detrimental to the right of anyone who has suffered damages at European level to plead his case before a unified tribunal. The contract and its clauses remain valid solely when the damaged party was informed of the possibility of a controversy arising from the right to competition at the signature of the contract.

A call for greater safeguarding of investors rights at delisting

In the course of the session of May 6 the German parliamentary committee for safeguarding consumer rights heard expert evidence on the draft amendment to the joint-stock company law of 2014. The Christian Democrats are officially demanding more protection for shareholders when companies go through the phase of delisting. In the “Frosta” ruling at the end of 2013, the Federal Court declined to intervene, denying firstly any need for the company’s AGM to formalise a specific decision on its delisting and, secondly, denying any need for an obligatory offer to be addressed to the interests of the minority shareholders.

It is the legislator’s job to establish the appropriate protection. The law should also offer protection to the shareholders of foreign companies listed in a German bourse.