Parent company liability at the crossroads of company and competition law

Marković-Bajalović, Dijana (2021) Parent company liability at the crossroads of company and competition law. In: Liber amicorum : проф. др Мирко Васиљевић / уредник Душан В. Поповић. Правни факултет Универзитета, Центар за издаваштво, Београд, pp. 39-52. ISBN 978-86-7630-952-8

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Abstract

The parent company's liability for its subsidiary's obligations has been discussed in legal theory and courts' practice since the end of the 19th century, without a final solution reached. Courts exceptionally admit a parent company's liability in cases of indebtedness of its subsidiary. However, Anglosaxon and European courts apply different criteria in deciding whether to accept creditors' claims against parent companies. The issue is even more striking regarding delict liability, considering that traditionally it requires proving the alleged delict perpetrator's fault. The legal basis for parent companies' liability for competition law delicts should not differ from generally accepted legal principles concerning delict responsibility. However, the EU bodies have established a legal presumption that a parent is responsible for its subsidiary's competition infringement when the parent's total control over the subsidiary exists. The author examines legal theories and criteria supporting the parent's company liability in comparative company law and EU competition law to assess the coherence of the EU attitude with generally established legal principles.

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