Private Equity and Parental Liability: Assessing Antitrust Liability
DOI:
https://doi.org/10.33344/vol18iss2pp24-44Avainsanat:
SuomiAbstrakti
This article examines the increasing antitrust liabilities faced by private equity firms as regulatory frameworks evolve, particularly in EU competition law. As private equity firms move beyond passive investment and exert significant influence over the strategic and operational decisions of their portfolio companies, they are increasingly being held accountable for the anti-competitive practices of these entities. The expansion of the single economic entity doctrine in EU competition law plays a central role, treating private equity firms and their portfolio companies as a unified entity for the purposes of liability when decisive influence is demonstrated. This shift challenges the traditional distinction between financial investors and operational controllers, making private equity firms vulnerable to significant legal risks.
The article further explores how private equity firms can manage these growing liabilities. Through implementing robust governance structures, enforcing strict compliance programs, and securing strong contractual protections, private equity firms may be able to reduce their exposure to regulatory penalties and litigation. The article underscores the need for private equity firms to adapt to an increasingly stringent regulatory environment, where their active role in portfolio companies may result in legal responsibility for violations of competition law.
