ABSTRACT In the first cartel overcharge claim brought in the English High Court, [1] the claimant’s methodology for estimating ABB overcharges on the BritNed cable was comprehensively rejected. The Court concluded that the claimant’s econometric analysis was insufficiently grounded in facts and therefore unreliable. The Court was more persuaded by the defendant’s gross margin analysis that showed a lower gross margin on the BritNed project than on ABB’s post-cartel projects. Despite rejecting the overcharge claim, the Court nevertheless awarded damages to BritNed using a novel, cost-based approach, comprised of the cartelist’s “baked-in inefficiencies” and so-called “cartel savings.” These unorthodox methods bore no direct relation to the actual loss suffered by BritNed and, accordingly,
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The UK High Court of Justice rejects methodology for estimating overcharges on cables based on economic evidence (BritNed / ABB)
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