ECJ Rules that Parent Can Be Liable for Anticompetitive Conduct of Subsidiary

The European Court of Justice dismissed Akzo Nobel‘s appeal of a 2007 Court of First Instance judgment affirming a fine for cartel activities regarding choline chloride, a feed additive.  The fine included the participating subsidiaries as well as the parent company on a theory of joint and several liability.  The decision amounts to high court confirmation of the EC’s view that a parent company may be held liable for anti-competitive behavior of its subsidiaries even if did not itself participate in those activities.

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