The ECJ determined that EU law precludes any national legal interpretation of national law that effectively prevents individuals who have suffered harm from competition law violations from transferring their claims to a licensed legal services provider. This decision hinges on two essential conditions: firstly, that the national legal system does not provide any alternative means for effectively consolidating individual claims; and secondly, that pursuing individual lawsuits would be either impossible or excessively difficult, thereby denying claimants their right to effective judicial protection.
The ECJ’s judgment is grounded in several EU legal provisions, including Article 101 TFEU, which addresses anti-competitive agreements, Article 4 of the EU Damages Directive, and Article 47 of the Charter of Fundamental Rights of the European Union. These provisions collectively uphold the principle of effectiveness, which is a fundamental principle of EU/EEA law and ensures that individuals have the right to an effective remedy before a court for violations of EU law. Consequently, EU Member States are required to establish procedural rules that facilitate the effective exercise of this right.
The ECJ’s reasoning emphasised the principle of effectiveness as a cornerstone of EU law, which mandates that national procedural rules must not render the exercise of EU rights by individuals practically impossible or excessively difficult. The court provided guidance to the national court on how to assess these conditions, advising that it should consider the overall national legal framework and the specific circumstances of each case. The national court must evaluate whether the procedural requirements, such as the complexity, cost, and duration of individual actions, create a significant deterrent for individuals seeking to exercise their rights. If these factors collectively impose an undue burden, making it excessively difficult for claimants to pursue their claims, the national court is obliged to disapply the prohibitive national provisions.
The ruling underscores the ECJ’s commitment to ensuring that national procedural laws align with EU principles, particularly in safeguarding individuals’ rights to compensation for competition law infringements. By reinforcing the principle of effectiveness, the decision highlights the need for EU Member States to adapt their legal frameworks to support collective redress mechanisms, thereby enhancing the overall efficiency and accessibility of the judicial system.
This landmark decision is expected to have an impact on national civil procedures across EU Member States, particularly in the realm of class action lawsuits. It serves as a reminder of the ECJ’s role in harmonising national laws with EU objectives, ensuring that individuals can collectively pursue justice and hold entities accountable for anti-competitive practices
The ruling provides new momentum to the principle of efficiency and its impact on national civil procedure, particularly in the context of class action lawsuits.
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