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Engagements

Damages estimation for alleged abuse of dominance in the market for electricity distribution

Lear assisted one of the main distributor in the Italian electricity market in developing defensive strategies apt to rebut the accusations of abuse of dominance made (along 2019) by two different companies active in the retail electricity market. In the first case, Lear assisted its client in developing a defensive strategy against the competitor’s accusation regarding alleged illegal and oppressive requests, which eventually allegedly drove the competitor out of the market. Lear’s defensive strategy was based on the proof that not only were these requests legal by contractual terms, but also that the competitor was in such a poor economic and financial condition that it would have gone bankrupt anyway. In the second case, according to the prosecutor, Lear’s client has taken advantage of its dominant position in the market of electricity distribution and has illicitly requested payments that have caused severe damages to the financial situation of the competitor.
Lear’s defensive strategy aimed to disprove the rationale behind the exorbitant assessment of damages developed by the competitor.