Paris Court of Appeal Cites Economic Analysis in Flour Cartel Judgment

In 2012, the French Competition Authority (“FCA”) sanctioned flour producers for a cartel involving market sharing between France and Germany, as well as for setting up a commercialization joint venture (“JV”). Compass Lexecon experts submitted an expert report in the appeal procedure, addressing the efficiency effects and lack of demonstrated anticompetitive effects of the commercialization JV.

In its November 2014 judgment, the Paris Court of Appeal annulled the portion of the FCA’s decision relating to the commercialization JV, thereby eliminating Euro 145 million in fines that had been imposed by the FCA on the participants in the JV. The appeal court’s judgment favorably cited the economic analysis submitted by Compass Lexecon in relation to the efficiency rationale for the JV. The Compass Lexecon team, David Sevy, Frédéric Palomino and Guillaume Duquesne, worked with Léna Sersiron of Baker & McKenzie.