COMMUNICATION FROM THE COMMISSION Guidelines for national courts on how to estimate…

COMMUNICATION FROM THE COMMISSION Guidelines for national courts on how to estimate the share of overcharge which was passed on to the indirect purchaser

guidance · European Union · 52019XC0809(01)

3 provisions in 476 nodes

Defined terms · All instruments · EU Member State · EU law · Internet · accounting · branch · cartel · competition · competition law

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COMMUNICATION FROM THE COMMISSION

Guidelines for national courts on how to estimate the share of overcharge which was passed on to the indirect purchaser

1.1. Purpose, scope and structure of these guidelines

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1.2. What is passing-on of overcharges?

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Box 1

Passing-on of a price increase for copper (hypothetical example)

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2. THE LEGAL CONTEXT

2.1. Passing-on of overcharges and the right to full compensation

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2.2. Scenarios in which national courts may face passing-on issues

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Box 2

The two typical scenarios of passing-on

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2.3. The court's power to estimate passing-on

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2.4. The role of evidence

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3. THE ECONOMIC THEORY OF PASSING-ON

4. THE QUANTIFICATION OF PASSING-ON AND VOLUME EFFECTS — GENERAL ASPECTS

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4.1. Data and information needed when quantifying the passing-on effects

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4.2. The use of economic experts

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Box 3

Example of a case involving evidence provided by economic experts (71)

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Box 4

Example of a case in which the court appoints an economic expert (72)

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5. THE QUANTIFICATION AND ESTIMATION OF PASSING-ON RELATED PRICE EFFECTS

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5.1. Comparator-based methods

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5.1.1. Approaches

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5.1.1.1. The before-during-after approach

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Box 5

Illustrated example of a before-during-after approach (83)

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5.1.1.2. The cross-sectional approach

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Box 6

Illustrated example of a cross-sectional approach

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5.1.1.3. The difference-in-differences approach

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Box 7

Illustration of the difference-in-differences approach

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5.1.2. Implementing comparator-based approaches in practice

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Box 8

The German car glass case (93)

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Box 9

Estimating passing-on based on qualitative evidence — Cheminova (2015) (94)

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Box 10

Estimating passing-on based on qualitative evidence — DOUX Aliments (2014) (95)

5.2.1. The passing-on rate approach

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5.2.2. Implementing the passing-on rate approach in practice

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5.2.3. The simulation approach

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6. THE QUANTIFICATION AND ESTIMATION OF VOLUME EFFECTS

Estimation of volume effects — Cheminova (2015) (108)

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6.2. Comparator-based approach

6.2.1. Information needed

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6.2.2. Methods and challenges

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6.3. Elasticity approach

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6.3.1. Methods and information needed

8. ANNEX 1 — ECONOMIC THEORY

8.1. Introduction

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8.2. Input costs and their effect on pricing decisions

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Box 13

Examples of marginal and fixed costs

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8.3. Characteristics of demand and links to prices

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Box 14

The standard demand curve — price and volume effects

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Box 15

Other curvatures of demand

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8.4. A firm's pricing decision

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Box 16

Trade-off between price increase and lost sales

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8.5. Intensity of competition and links to passing-on

8.5.1. Continuum of competitiveness of markets

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8.5.2. Industry-wide vs. firm-specific overcharge and passing-on

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8.6. Some further factors impacting passing-on

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9. ANNEX 2 — GLOSSARY

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