Competition Damages (Treble Damages)

Under Article 57 of Law No. 4054, those who engage in conduct preventing, distorting or restricting competition, or take such decisions, must compensate anyone harmed as a result. This right is independent of the Competition Board’s administrative fine and is exercised through damages actions in the civil courts.

Treble Damages

Under Article 58, those harmed may claim the difference between the price they paid and the price they would have paid had competition not been restricted. Where the harm results from the parties’ agreement or decision or from their gross negligence, the court may, at the claimant’s request, award three times the material damage suffered. This is a particularly deterrent sanction for cartels.

Who Sues?

• Customers who bought from a cartel and paid excessive prices,
• Competitors excluded from the market or hindered by abuse of dominance,
• Dealers harmed by resale price maintenance or refusal to supply.

Effect of Board Decisions

A prior Board decision is not required for a damages action; the infringement can be proven directly in court. In practice, however, actions are usually brought after a Board decision finding an infringement. An infringement acknowledged in a settlement text is also strong evidence for claimants. Immunity under active cooperation concerns only the administrative fine and does not remove liability for damages.

Quantifying Harm

The amount of harm is determined by comparing the price that would have prevailed absent the infringement with the actual price, and often requires an expert economic report. The defendant may argue that the harm was passed on by the buyer to its own customers, so claimants should document their own chain of harm.