Internal allocation of cartel fines within the single economic entity¹¹This article is based on my dissertation submitted to King’s College London in September 2015. I would like to thank my supervisor, Niamh Dunne, as well as Jerin John, Reina-Marie Loader, Anna Theresa Mayer, Isabella Fenz, Lukas Herrmann, and Alison Clements for their help.

Descriptors: Internal liability; fine; single economic entity; undertaking.

Norms: Art 101 TFEU, Art 102 TFEU, Art 23 Reg 1/2003

​​I. Introduction

Pursuant to Art 23 (2) (a) Reg 1/2003²²Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (Reg 1/2003) [2004] OJ L1/1. the Commission may impose a fine on undertakings which are found to have intentionally or negligently infringed Arts 101 or 102 TFEU. According to the case law, the concept of an “undertaking participating in an infringement" used in the second subparagraph of Art 23 (2) Reg 1/2003 is the same as for the application of Art 101 TFEU.³³Case C-408/12 P YKK and Others [2014] ECLI:EU:C:2014:2153, para 59. With regard to Art 101 TFEU, the ECJ has consistently held that the notion of an undertaking must be understood as referring to an economic entity, even if it consists of several distinct persons, natural or legal.⁴⁴Case 170/83 Hydrotherm [1984] ECLI:EU:C:1984:271, para 11; Case C-73/95 P Viho [1996] ECLI:EU:C:1996:405, para 50; Case C-217/05 Confederación Española de Empresarios de Estaciones de Servicio [2006] ECLI:EU:C:2006:784, para 40. The fact that a parent company and its subsidiary constitute a single undertaking within the meaning of Art 101 TFEU enables the Commission to address a decision imposing fines to the parent company, without having to establish the personal involvement of the latter in the infringement.⁵⁵Case C-97/08 P Akzo Nobel and Others [2009] ECLI:EU:C:2009:536, para 58; Case C-90/09 P General Química and Others [2011] ECLI:EU:C:2011:21, para 37; Joined Cases C-247/11 P and C-253/11 P , Areva SA [2014] ECLI:EU:C:2014:257, para 30. Those companies forming a single economic entity and therefore an undertaking are then jointly and severally liable for the payment of the fine.⁶⁶Case C-97/08 P Akzo Nobel and Others [2009] ECLI:EU:C:2009:536, para 61; Case C-90/09 P General Química and Others [2011] ECLI:EU:C:2011:21, para 40.