The EU Court of Justice confirms that financial investors can be liable where they hold 100% voting rights over an indirect entity that participated in a cartel (Goldman Sachs)

On 27 January 2021, the Court of Justice of the European Union (“CJEU”) confirmed in Goldman Sachs Group Inc. v European Commission that financial investors can be liable where they hold 100% voting rights over an indirect entity that participated in a cartel, even though the investor does not own 100% of the share capital during the relevant infringement period. Crucially, the judgment highlights the importance of conducting careful due diligence and ensuring competition law compliance for all investors, including financial investors, during the acquisition process. Background Between 29 July 2005 and 28 January 2009, the Goldman Sachs Group (“GS”), was the indirect parent company through GS Capital Partners V Funds (“GSCP V Funds”), of Prysmian SpA and of the wholly owned subsidiary of

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Authors

  • Covington & Burling (Brussels)
  • Covington & Burling (London)
  • Covington & Burling (Brussels)

Quotation

Johan Ysewyn, Kevin Coates, Aidan Forde, The EU Court of Justice confirms that financial investors can be liable where they hold 100% voting rights over an indirect entity that participated in a cartel (Goldman Sachs), 27 January 2021, e-Competitions Mergers & Joint ventures, Art. N° 99641

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