The EU General Court confirms that when a wholly owned subsidiary is sold to a new owner, that subsidiary and the previous owner remain jointly and severally liable for any competition law infringement that the subsidiary committed before the sale (Areva / Alstom)

In a judgment delivered on 3 March 2011 in Cases T-117/07 Areva v European Commission and T-121/07 Alstom v European Commission, the General Court of the European Union (the ‘Court’) the Court confirmed the general rule that when a wholly-owned subsidiary that has infringed competition law is sold to a new owner, that subsidiary remains liable for any infringement that it commits before the sale and the previous owner is jointly and severally liable with that subsidiary for that infringement relating to behaviour up until the sale. The Court also held that where a decision has imposed a cartel fine jointly and severally on a number of companies, the companies must contribute in equal amounts to

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  • Herbert Smith Freehills (London)
  • White & Case (Brussels)

Quotation

Morris Schonberg, Axel P. Schulz, The EU General Court confirms that when a wholly owned subsidiary is sold to a new owner, that subsidiary and the previous owner remain jointly and severally liable for any competition law infringement that the subsidiary committed before the sale (Areva / Alstom), 3 March 2011, e-Competitions March 2011, Art. N° 37045

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