Sustainability-focused specialty chemical company Clariant today announced its resolute rejection of a substantial damages claim filed by Dow Europe with the court of Munich, Germany. The claim, amounting to approximately EUR 767 million, stems from a 2020 European Commission ruling that sanctioned several companies for infringing competition law within the Ethylene purchasing market.

The European Commission's investigation, concluded in July 2020, found that a number of chemical companies had engaged in anti-competitive practices related to the pricing of ethylene, a crucial raw material used in the production of various plastics and chemicals. While the Commission imposed significant fines on the implicated parties at the time, the current claim from Dow Europe represents a subsequent action seeking compensation for alleged damages resulting from this infringement.

Clariant, one of the four companies named in Dow Europe's claim, has vehemently denied any wrongdoing and asserted its intention to vigorously defend its position in the upcoming legal proceedings. In an official statement, Clariant emphasized that Dow Europe was not a supplier of ethylene to the company. Furthermore, Clariant stated that it possesses robust economic evidence demonstrating that the conduct of the sanctioned parties had no discernible impact on the market in a way that would have caused damage to Dow Europe.

This development marks a significant escalation in the aftermath of the European Commission's 2020 ruling. Competition law infringements can lead to various follow-on actions, including claims for damages by parties who believe they have suffered financial losses as a result of the illegal practices.

The background to this case lies in the European Commission's commitment to ensuring fair competition within the European Union's single market. The Commission's investigation into the ethylene purchasing market aimed to address concerns about potential price fixing or other collusive behaviors that could harm businesses and consumers.

Now, Dow Europe's decision to pursue a substantial damages claim against Clariant and the other unnamed companies adds a new layer of complexity to the situation. Clariant's firm stance against the allegations suggests a potentially lengthy and contentious legal battle ahead. The outcome of this case could have significant implications for the involved companies and may also set precedents for future damages claims related to competition law infringements in Europe.