ESSEC Working Papers,
ESSEC Research Center, ESSEC Business School

Abstract: This paper discusses the possible significance of the recent Empagran decision of the US Supreme court for the extraterritorial enforcement of competition law. In this decision the US Supreme rejected the claim of foreign plaintiff suing in the US another foreign firm which had participated in an international cartel but the Court did not rule out that such a claim could be admitted if it was established that the damage abroad was linked to a domestic violation of the Sherman act. We focus on two questions: - Is the Empagran decision merely a reaffirmation of a strict interpretation of the effects doctrine, and , if that is the case, how can the enforcement of domestic competition laws by national competition authorities deal with transnational anticompetitive practices ? - Can the Empagran decision be understood as signalling a move a move away from the pure effects doctrine and the beginning of a new era with a reinforced role for US courts in the fight against international cartels ?

Keywords: Trade; Antitrust; Comity; International Cartels; Extraterritoriality; Developing Countries; Economic History

JEL-codes: H73; K21; K33; L41; N40

44 pages, December 2004

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