23.9.2019

Competition Damages Cases Set New Precedents

In recent years, Finnish courts have handled a number of landmark cases dealing with competition damages. The trials have involved the state, municipalities, companies and individuals claiming compensation for harm that they allege to have suffered due to a cartel, predatory pricing or other competition infringements. What makes the cases interesting is that the courts have had to resolve questions that are not directly answered by law.

 

Did the Infringement Cause Harm?

One of the crucial questions in competition damages cases is whether the competition infringement actually caused harm to the claimants. In Finland’s largest competition damages trial to date, Metsähallitus (an entity managing state-owned forests) claimed damages in the original amount of approximately EUR 283 million from the forest industry companies Stora Enso, UPM-Kymmene and Metsäliitto Cooperative based on the Market Court’s ruling on a competition infringement in the roundwood market.  In addition to extensive factual evidence, the parties submitted a significant volume of economic expert reports on the impact of the infringement. The Helsinki District Court and the Helsinki Court of Appeal dismissed Metsähallitus’ claims because the competition infringement had not been shown to have had an effect on the prices of roundwood agreed between the parties. The Court of Appeal’s judgement remains final as the Supreme Court did not grant Metsähallitus leave of appeal.

Earlier in 2017, the Helsinki District Court had dismissed damages claims in the original amount of more than EUR 50 million brought by private forest owners and municipalities regarding the same competition infringement on the roundwood market. The decisions by the District Court are final.

The legislation on the burden of proof regarding the occurrence of damages changed partially in December 2016 with the entry into force of the Act on Competition Damages. The Act is based on an EU Directive and it places the burden of proof regarding the occurrence of harm in cartels on the defendant. In other words, cartels are presumed to have caused harm unless the participants show the contrary.

Who Pays and How Much?

If harm has occurred, the next step for the court to assess is the amount of damages. This summer, the Helsinki District Court gave a decision in a damages case based on predatory pricing. Finland’s largest dairy operator was alleged to have inflicted harm on its competitors by pricing below its variable costs. This was Finland’s first significant damages trial related to an abuse of a dominant market position and one of the very few in Europe. Four claims out of six were settled before the main hearing. As regards the remaining two, the damages awarded by the District Court were less than a third of the original claim, which amounted to EUR 30 million. The decision is final.

Often, the court will also have to determine how liability for damages is divided between members of the competition infringement. In June, the Supreme Court handed down its first rulings regarding damages claims based on the so-called asphalt cartel. The Finnish government and 40 municipalities claimed damages that originally amounted to a total of  EUR 120 million from asphalt companies on the basis of a cartel. The Supreme Court clarified, among other things, the joint and several liability of cartel participants in a situation where the liability for damages has become time-barred for some of them. In the cases before the Supreme Court, three companies were jointly and severally liable for damages. However, for two of them, the liability had become time-barred. The Supreme Court deemed that this had caused the joint and several liability to lapse. Notwithstanding this, in one of the cases the third company was liable for the full amount of damages due to the fact that it had been the contracting party of the claimant. In another case, the same company was only liable for one third of the damages, because it had not been a contracting party of the claimant but it had otherwise played a central role in the cartel.

The asphalt cartel damages cases have also brought up the issue of the transfer of liability in corporate acquisitions before the Supreme Court. The Supreme Court referred this question to the Court of Justice of the European Union for a preliminary ruling. The CJEU gave its ruling in the spring. It found that the purchaser of a cartel company is liable for damages if it continues the company’s activity, even if it had dissolved the acquired company. This ruling will be taken into account in the Supreme Court’s final decision.

Read More

For those who would like to learn more about competition damages, our experts Ilona Karppinen and Sari Hiltunen have compiled an extensive account of Finnish law and legal praxis for the publication Private Antitrust Litigation: A Practical Law Global Guide.

Latest references

We advise Korona Invest and the other shareholders of Innoflame Oy on the sale of Innoflame to Sponsor Capital. The transaction makes Sponsor Capital the new majority owner of Innoflame. Korona Invest has been a shareholder of Innoflame since 2021 and, together with the other selling shareholders, has over the past five years supported the company’s growth, development and several strategically significant corporate transactions, through which Innoflame has strengthened its position as Finland’s leading product media company. The ownership change is intended to support Innoflame’s next phase of growth, including its ambition to build a significant European product media company with the capability to expand rapidly into new markets. The transaction is conditional to the customary closing conditions such as authority approvals. Innoflame is one of Finland’s leading product media specialists, helping its clients build a unified brand experience by offering the design, sourcing and management of product media as a single integrated service. Korona Invest is a Finnish private equity firm founded in 2006, specialising in buyout and growth investments in domestic small and medium-sized enterprises. It makes both majority and minority investments, structuring each project to suit the company’s growth strategy. 
Case published 27.8.2026
We advised Hopeasalmen Telakka Oy, part of Marina Group, on the acquisitions of Iisiveneily and Porvoon Venekorjaamo. The transactions form part of Marina Group’s expansion into the Finnish marina and boatyard sector, strengthening its position under the Quattro Marine brand. Following the acquisitions, Quattro Marine’s Finnish operations comprise Hopeasalmen Telakka, which operates boatyard facilities in Helsinki’s Mustikkamaa and in Tolkkinen, Porvoo, together with Iisiveneily and Porvoon Venekorjaamo. Marina Group is a Norwegian marina and boatyard consortium owned by the private equity sponsor Norvestor. It has grown rapidly through acquisitions to become the Nordic region’s largest boating services provider, having acquired 24 marinas and boatyards across Norway, Sweden and Finland within roughly a year.
Case published 24.8.2026
We advised Neste as it signed a EUR 250 million 10-year loan with NIB. The loan will finance Neste’s investments related to research and development (R&D) in processing lower-quality feedstocks into high-quality renewable products; as well as the liquefied waste plastics (LWP) investment at Neste’s refinery in Porvoo, Finland. The R&D activities supported by the loan focus on the development of renewable solutions. These include, for example, expanding feedstock capabilities and technologies that enable the processing of new and lower-quality waste and residues into high-quality renewable end products. Part of the financing supports Neste’s liquefied waste plastics investment in Porvoo, related to upgrading low-quality plastic waste into high-quality feedstock at an industrial scale. The investment contributes to advancing circular economy solutions by enabling the use of hard-to-recycle plastic waste as a replacement for virgin fossil raw materials. The unit has an annual capacity to process up to 150,000 tonnes of liquefied waste plastic. Production ramp-up commenced in 2026.
Case published 19.8.2026
We advised Aspo Plc, ESL Shipping Ltd and AtoBatC Shipping AB in relation to finance matters in connection with the demerger of Aspo, by which all the shares in ESL Shipping Ltd held by Aspo, together with the related assets and liabilities, will be transferred to a new independent company to be named ESL Shipping Group Plc. Aspo intends to apply for the shares of ESL Shipping Group to be admitted to trading on the regulated market of Nasdaq Helsinki. It is further intended that Aspo be renamed Telko Group Plc. 
Case published 19.8.2026