Private Enforcement of Competition Law

Applicable legislation

In Lithuania, the issues related to the private enforcement of competition law are governed by the Law on Competition (23 March 1999, No VIII-1099) (the "Law on Competition" or the "Law"), the Code of Civil Procedure (28 February 2002, No IX-743) (the "Code of Civil Procedure") and the Civil Code (18 July 2000, No VIII-1864) (the "Civil Code").

Legal basis for private enforcement

The Law on Competition provides for a two-fold approach to the private party enforcement of competition law.

First, the Law provides that an undertaking, whose legitimate interests were violated by actions in breach of Articles 81 or 82 of the EC Treaty or other restrictive actions prohibited by the Law on Competition, is entitled to bring an action before the Vilnius County Court for the termination of illegal actions and compensation for damage incurred.

The Law prohibits standard restrictions on competition:

Restrictive agreements and practices (e.g. price fixing, market sharing).

Abuse of dominant position (e.g. refusal to supply, tying).

Unfair competition (e.g. misleading advertising, trademark infringements).

Noteworthy is that in case of unfair competition, an undertaking, whose legitimate interests were violated (e.g. owner of the registered trademark, undertaking injured by misleading advertising), is entitled to bring an action before the courts for the termination of illegal use actions and/or compensation for damage incurred.

Secondly, the Law on Competition establishes an obligation for undertakings that are in breach of the Law to indemnify for the damages caused to other undertakings or natural and legal persons. Indemnification is to be granted in accordance with the procedure and principles established by virtue of the Code of Civil Procedure and the Civil Code.

Procedure

Parties

By virtue of Lithuanian law both legal and natural persons are free to bring an action against anticompetitive behaviour of an undertaking. Though the Law on Competition provides for only the right of undertakings to an action for compensation for damages incurred, however, direct actions for damages by consumers against anticompetitive behaviour are also possible under Lithuanian law. Further, in an action against unfair competition, a consumer organisation can also be a party; however, they cannot claim damages.

Class actions

Class actions are provided under Lithuanian law. However, due to the lack of certain legislative instruments...