The following Competition practice note Produced in partnership with Dentons provides comprehensive and up to date legal information covering:
Under EU competition law, a parent company may be held jointly and severally liable for antitrust violations committed by its subsidiary, where the parent company exercises decisive influence over the subsidiary. There has been much case law on parental company liability which has the potential to open up considerable risk for companies.
Article 101 TFEU applies to ‘undertakings’. The concept of an undertaking is not defined in the EU Treaties and/or regulations. The case law commonly describes an undertaking as a unitary organisation of personal, tangible and intangible elements, which pursues a specific economic aim on a long-term basis, regardless of its legal status and the way in which it is financed. Undertakings are thus economic, rather than legal entities. As a result, an undertaking under Article 101 TFEU does not necessarily correspond with the definition of a legal person under national corporate law (eg limited liability company)—an economic unit comprising different legal or natural persons may form a single undertaking for competition law purposes.
It is the economic unity of the undertaking that enables the Commission to target entire corporate groups and hold the parent company jointly and severally liable for antitrust violations committed by one of the group’s subsidiaries.
See further, The prohibition on restrictive agreements.
Initially, the rationale behind the concept of parental company liability
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged financings. TLBs are an established feature in the US market and increasingly used in the European lending market for institutional investors.This
Criminal offences are generally divided into two categories: •conduct crimes, and •result crimesA conduct crime is a crime where only the forbidden conduct needs to be proved. For example, an accused is guilty of dangerous driving if they drove a motor vehicle dangerously on a road or other public
This Practice Note discusses the common law doctrine of privity of contract; the equitable and statutory exceptions to it; how the doctrine affects enforcing a contract against a third party and what happens when, notwithstanding the lack of privity, a contract has an indirect effect on a third
A declaratory judgment is a judgment identifying the rights, duties or obligations of one or more parties in a dispute. It is legally binding, but does not order any action by a party. A court may issue it alone or in conjunction with some other relief such as an injunction and can be granted on an
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.