COBALT successfully represented VKG in a civil competition damages claim

COBALT successfully represented Viru Keemia Grupp and VKG Oil in a competition damages claim. VKG filed a claim against Enefit Power, claiming compensation for the unfair and discriminatory part of the price of oil shale paid to Enefit. The court found that Enefit Power was in a dominant position in oil shale mining and had set unfairly high sales prices and ordered Enefit Power to pay VKG more than 7 million euros.

Viru Keemia Grupp is a privately owned Estonian industrial corporation with a history dating back to 1924. VKG Oil is a subsidiary of Viru Keemia Grupp, which is engaged in the production of shale oil and fine chemical products.

This case set a precedent in the civil and competition law fields in several ways. A civil court can award damages caused by an abuse of dominant position even if the Competition Authority did not establish a violation of the Competition Act in the same circumstances.

Further, the court ruled that it is not necessary to prove separately that the activity had an anti-competitive effect. It is sufficient to prove that competition may be harmed and if the price is excessive, then harm can be assumed.

COBALT team who advised the client consisted of Partner Elo Tamm and Managing Associate Rauno Ligi.