Private equity firms: liability for anti-trust fines title
It has long been established under EU competition law that parent companies can be held liable for the anti-trust fines imposed on subsidiary entities. In a recent decision, the European Commission confirmed that investors (be they industry or private equity investors) can also be found liable where they exercise ‘decisive influence’ over a company and its decisions.
On 2 April 2014, the European Commission fined 11 producers of underground and submarine high-voltage power cables a total of €302m (£250m) for participation in a 10-year market and customer-sharing cartel. The cartel involved the world’s largest producers of high-voltage power cables. The European Commission decided that the participants had reserved their home markets from competition, allocated other territories between them and agreed price levels to effectively fix tender outcomes.
The decision is noteworthy because it also held that one of the parent companies (Goldman Sachs, the investment bank) was liable for actions of its subsidiary (Prysmian). Prysmian was acquired by Goldman Sachs Capital Partners in 2005 from Pirelli. Goldman Sachs sold down its investment in Prysmian during its ownership…
Click on the link below to read the rest of the Walker Morris briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
In view of the imminent changes, the aim of this article is to provide a ‘ShPL ready - checklist’
What do you do when you take possession of a house and the former occupier has left various items of theirs behind?
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.