by Philip Bentley and Philipp Werner

A judgment of the EU General Court in March 2011, upheld on appeal by the Court of Justice of the European Union (CJEU) on January 22, 2013, is potentially good news for parent companies.  Where both a parent company and its subsidiary bring separate court challenges against a cartel fine for which they were held jointly and severally liable, the parent company should benefit from any reduction in fine that the court grants to the subsidiary, provided that the challenges brought by the two companies have the “same object”.  

In light of these judgments, it would appear that a parent company’s argument should be similar to that adopted by its subsidiary when challenging a fine imposed jointly and severally on both of them.  At the same time, the parent company may wish to contest the fact that it was held jointly and severally liable for the subsidiary’s infringement.  This would require the parent to demonstrate that it did not exercise a “decisive influence” over the subsidiary’s commercial policy.  Reconciling this latter argument with a challenge to the subsidiary’s fine is, however, likely to require skilful drafting of the parent company’s pleadings.

To read the full article, click here.