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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

guidance · European Union · 52019XC0809(01)

45 provisions

Defined terms · All instruments

1 INTRODUCTION
1.1 Purpose, scope and structure of these guidelines
1.2 What is passing-on of overcharges?
2 THE LEGAL CONTEXT
2.1 Passing-on of overcharges and the right to full compensation
2.2 Scenarios in which national courts may face passing-on issues
2.3 The court's power to estimate passing-on
2.4 The role of evidence
3 THE ECONOMIC THEORY OF PASSING-ON
3.1 Overview
3.2 Examples
4 THE QUANTIFICATION OF PASSING-ON AND VOLUME EFFECTS — GENERAL ASPECTS
4.1 Data and information needed when quantifying the passing-on effects
4.2 The use of economic experts
5 THE QUANTIFICATION AND ESTIMATION OF PASSING-ON RELATED PRICE EFFECTS
5.1 Comparator-based methods
5.1.1 Approaches
5.1.1.1 The before-during-after approach
5.1.1.2 The cross-sectional approach
5.1.1.3 The difference-in-differences approach
5.1.2 Implementing comparator-based approaches in practice
5.1.3 Challenges
5.2 Other methods
5.2.1 The passing-on rate approach
5.2.2 Implementing the passing-on rate approach in practice
5.2.3 The simulation approach
6 THE QUANTIFICATION AND ESTIMATION OF VOLUME EFFECTS
6.1 Introduction
6.2 Comparator-based approach
6.2.1 Information needed
6.2.2 Methods and challenges
6.3 Elasticity approach
6.3.1 Methods and information needed
6.3.2 Challenges
7 CHOICE OF METHOD
8 ANNEX 1 — ECONOMIC THEORY
8.1 Introduction
8.2 Input costs and their effect on pricing decisions
8.3 Characteristics of demand and links to prices
8.4 A firm's pricing decision
8.5 Intensity of competition and links to passing-on
8.5.1 Continuum of competitiveness of markets
8.5.2 Industry-wide vs. firm-specific overcharge and passing-on
8.6 Some further factors impacting passing-on
9 ANNEX 2 — GLOSSARY