The European Court of Justice issues a decision on a rubber chemicals cartel holding a parent company liable for the anticompetitive behaviour of its wholly-owned subsidiary and confirming that the presumption of parental liability is rebuttable (General Química)

The ECJ rules on parenthood (General Química v Commission)* The ECJ issued a Judgment yesterday in the General Química-Repsol case in which it partly upheld and partly annulled the General Court's judgment dismissing the appeals against the Commission decision in the rubber chemicals cartel. In its Judgment the Court provides some guidance on the operation of the iuris tantum presumption pursuant to which the exercise of decisive influence of a parent company over the conduct of its subsidiaries (and, accordingly, the responsibility of the parent for the wrongdoing of its subsidiary) can be presumed, always subject to rebuttal, in case of 100% ownership. The Commission and the General

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Alfonso Lamadrid De Pablo, The European Court of Justice issues a decision on a rubber chemicals cartel holding a parent company liable for the anticompetitive behaviour of its wholly-owned subsidiary and confirming that the presumption of parental liability is rebuttable (General Química), 20 January 2011, e-Competitions Bulletin January 2011, Art. N° 36490

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