Corrugated cardboard, Italian companies could get over 2 billion in refunds

According to a market survey carried out by unilegion, on a sample of more than 7000 Italian companies from various sectors (chemical, pharmaceutical, cosmetics, ceramics, components and furniture), the companies that purchase cardboard boxes that have taken legal action to date are less than 33%. According to the survey, it is almost predominantly only large companies with a turnover of more than 100 million (accounting for a very large share of the 33% of the sample) that have taken legal action against the corrugated cartel, while SMEs (67%), in particular, are less inclined to enforce their right to compensation. This is because they are unfamiliar with the class action instrument and therefore frightened by the idea of having to bear all the costs and risks themselves.

Class action litigation is in fact the safest and most effective way to achieve the desired results. Those who have joined the class action and those who decide to join will not have to advance any money: it is, in fact, unilegion that bears all costs associated with the litigation, including legal fees, competition economists' fees, court costs and any other necessary expenses. Only and exclusively in the event of a victory, after deducting the portion of any expenses not covered by the other party, the company will receive a commission on the amount recovered.

"The amount of the overcharge paid varies from case to case, but can be estimated at between 10 and 20 per cent or more of the purchase price paid for the cartelised products," explains Luisa Capitanio, Unilegion's Country Manager for Italy. In addition, when it is discovered, as in this case, that the cartel lasted for a long period of time, accrued interest, monetary revaluation, and lost profit (lucro cessante) must be added, which can reach up to + 50% of the original damage. By way of example, therefore, a company that purchased cardboard boxes for a volume of EUR 500,000 per year for 14 years (from 2004 to 2017), for a total of EUR 7 million, paying an indicative surcharge of 15% could also receive up to EUR 1.5 million in compensation, or more'.

In recent years, the legal requirements for the enforcement of antitrust complaints have been considerably improved, also at the initiative of the European Commission. To this end, a decision-making practice has developed in many EU Member States, which largely confirms the right of aggrieved parties to compensation.

Without wishing to enter into the merits of the decision of the Italian Antitrust Authority," says Assografici, the Italian National Association of Paper Converting and Converting Industries, "it is worth clarifying that the latter, while claiming the existence of a cartel between a number of Italian corrugated cardboard manufacturers, has never bothered to prove the effectiveness of the cartel, let alone quantify the damage it would have caused to the purchasing companies;

- With regard instead to the alleged damages, it is easily demonstrable that the prices charged in Italy were, for the entire contested period, in line with if not generally lower than those charged by corrugated board manufacturers in other EU countries, demonstrating that no presumption of efficacy and therefore damage can be derived from the finding of the cartel;

- Also the fact that the companies involved, during the years of the alleged cartel, achieved operating results in line with those of the industry, a sector that performed poorly overall, demonstrates the lack of effectiveness of the cartel and the absence of harm to customers.

Therefore, news (or commercial information) addressed to companies about alleged damages of 20 per cent of the costs incurred for the purchase of corrugated cardboard, originating from law firms and companies organising class actions, are unfounded and merely aimed at misleading potential customers.