Clifford Chance Successfully Defends KONE Against EU Commission Damages Claim

Clifford Chance Successfully Defends KONE Against EU Commission Damages Claim

Global law firm Clifford Chance has achieved a major victory for its client, elevator and escalator industry leader KONE, in defeating a EUR 12 million follow-on damages claim brought by the EU Commission (acting on behalf of several EU institutions) before the Brussels Court of Appeal. The case also involved the other major lift manufacturers, Otis, Thyssenkrupp, and Schindler.

The case originated from an infringement decision by the EU Commission in 2007, which imposed damages of EUR 990 million on the lift manufacturers for operating a cartel from 1995 to 2004 in Germany, the Netherlands, and Belgium. In 2008, the EU started proceedings in Belgium to seek damages for the alleged excessive price it had paid for the installation and maintenance of lifts and escalators in its buildings during the cartel period and after, when the cartel influence allegedly continued.

The claim was ultimately dismissed as the Belgian courts (in first instance in 2014 and now on appeal) found that the EU institutions did not meet their burden of proof to show that the infringement had caused them to pay excessive prices.

Dorothée Vermeiren, L&DR partner leading the Clifford Chance team, commented: "This judgment underscores the critical role of thorough legal examination in such complex cases, utilising our firm's exceptional cross-practice and cross-office collaboration and deep legal expertise."

The L&DR team worked closely with Antitrust partners Dieter Paemen in Brussels and Thomas Vinje in Brussels, who also handled the initial investigation into the infringement for KONE.