The EU Court of Justice accepts the application of a strict presumption under EU law providing for the liability of a parent company, which holds all of a subsidiary’s capital shares (FLS Plast)

On June 19, 2014, in FLS Plast A/S v European Commission [1] the European Court of Justice considered application of a strict rebuttable presumption under EU Law, which provides for a parent company to be held liable for its subsidiary’s anti-competitive market conduct, where the parent company possesses control of all of the subsidiary’s capital shares and has the ability to exercise “decisive influence.” [2] The Court also assessed the validity of arguments suggesting that applying this presumption results in it being irrebutable, rather than serving as the rebuttable presumption otherwise suggested by the existing case law of the EU courts [3]. Additionally, the Court considered whether application of this presumption operated in contravention of Article 48 of the Charter of

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Robert Miklós Babirad, The EU Court of Justice accepts the application of a strict presumption under EU law providing for the liability of a parent company, which holds all of a subsidiary’s capital shares (FLS Plast), 19 juin 2014, e-Competitions June 2014, Art. N° 67867

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