Compensation of Damages Caused by the Spanish Sugar Cartel

By Francisco Marcos (IE Law School)

Recent decisions by the Spanish Supreme Court compensating for damages caused by the Spanish Sugar cartel to the sugar confectionery industry closed the different procedures associated sugar cartel damages claims. The cartel had operated in the Spanish market of sugar for industrial uses between February 1995 and July 1996. The case is a good the example of successful antitrust private claim damage following the investigation and punishment of the cartel by the competition authorities.

Apart from granting the compensation requested by the Spanish confectioners, the Supreme Court has clarified several issues relevant to the filing, rationale and defense of antitrust private claims. The litigation strategy of the parties in this type of litigation should take into account the dicta of the Supreme Court in this case. Indeed, starting from the right of victims to full compensation for damages, the Supreme Court has made clear the effect that previous decisions by the administrative authorities and administrative judicial courts must have before the civil Court. Additionally, the Supreme Court properly dissected the various components of the damage that can result from anticompetitive conduct violating the competition rules, asserting with sound judgment on what should be the content of the technical expert reports accompanying each parties’ allegations.

Finally, the Supreme Court rulings on the claims of damages caused by the sugar cartel set a firm ground on which to build the future of private enforcement of competition law in Spain, together with the support of the new Directive European Parliament and of the Council on certain rules that will govern the claims for damages for violations of the provisions of the competition law of the Member States and the EU.

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