The private enforcement of European Union competition law follows the principle that anyone who is harmed is entitled to compensation if they can prove a causal link between the infringement and the damages incurred. Unlawful practices by companies can lead to increased costs for direct customers, which they will try to reduce and pass on down the supply chain to indirect customers, by raising the prices of their own products.
The passing-on institute in the private antitrust litigation occurs in two forms. As a “sword,” it allows an indirect buyer to file a damage action arguing that the direct buyers of the infringer have partially or fully passed on the overcharge to them. In the form of a "shield", it allows the infringer to defend himself against the claims of the injured parties by objecting that the direct or indirect buyer has partially or fully passed on the overcharge to its own purchasers.
Both forms of the institute were finally introduced in EU law with Directive 2014/104/EU of the European Parliament and of the Council of 26 November, together with other provisions aimed at establishing an effective unified system of private antitrust litigation.
The master's thesis analyses the provisions of the Directive 2014/104/EU that were implemented in Prevention of Restriction of Competition Act of Slovenia, which are affecting the position and enforcement of damages claims of indirect purchasers. In addition to the passing-on institute, the provisions on the disclosure of evidence and the provisions governing damage assessments are presented in the foreground.
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