TGS Baltic represents the respondent AB Klaipėdos nafta in a private enforcement case

13.05.2019 TGS Baltic represents the respondent AB Klaipėdos nafta in a private enforcement case

TGS Baltic represents the respondent AB Klaipėdos nafta in a private enforcement case regarding compensation of alleged damages amounting to approx. EUR 6 million. 

The claimant UAB Krovinių terminalas claims that AB Klaipėdos nafta has abused its dominant position in the market of loading and storage of certain petroleum products and has concluded a prohibited vertical agreement with petroleum refining company AB Orlen Lietuva which is the top company in Lithuania according to revenue. The claimant UAB Krovinių terminalas belongs to Achema company group that unites more than 40 companies in different countries.

This dispute involves complex competition law issues regarding the definition of the respective market, market shares held by AB Klaipėdos nafta and existence of market power, etc. (an external expert report on the definition of the market has been already provided in the case). Another significant issue, in this case, is a relationship between abuse of dominant position and conclusion of prohibited agreements, as the claimant states that the same actions of AB Klaipėdos nafta have infringed competition rules regulating both the prohibited actions.

In addition, the claims put forward by the claimant require quite an unusual approach to the General Block Exemption Regulation and the Guidelines on Vertical Restraints (particularly related to the obligation of exclusivity).

Representation in this case also requires a good understanding of the operation of the energy sector in general as well as business models adopted in the specific market. The existence of damages and their calculation methods also form a significant part of the dispute.