On 17 June 2011 the Commission published draft non-binding guidance on quantifying harm in actions for damages based on breaches of competition law under Article 101/102 TFEU. The paper is designed to provide techniques and methods to assist parties and judges quantify the harm caused by various types of infringements. Among the techniques are comparator-based methods (e.g. estimating what would have happened but for the infringement by examining similar markets in different localities or products or comparing the market at different time periods), simulation models (drawing on economic models of market behaviour) and cost-based analysis (estimating product cost per unit and adding a ‘reasonable’ profit margin). The paper also provides advice on the ways of quantifying harm by:
- The effects on the market of price increases, including quantification of harm resulting in overcharges and reduction in demand (‘the volume effect’); and
- The effects of exclusion of competitors from a market, including quantification of harm of loss of profit of the excluded competitor and harm to customers.
The deadline for comments is 30 September 2011.
For a link to the Consultation Paper please click here