Germany
Answer ... German law does not provide specific instruments (eg, class actions) for bringing collective actions in competition law matters. However, despite the lack of specific instruments, there are options allowing for collective actions.
Under the general procedural law, different claimants can bring their claims jointly in a single action (‘Prozessgenossenschaft’). This is admissible if the claims are similar and based on the same facts (eg, damage claims against a member of a specific cartel). Formally, the action by each claimant remains independent from the actions by the other claimants. However, all actions are treated procedurally together – that is:
- all claims are presented in a joint statement of claims;
- there are joint hearings and joint hearing of evidence; and
- the court issues a joint decision.
Streitgenossenschaft is aimed at enhancing procedural economy and allows both claimants and defendants to reduce costs. However, the practical use of Streitgenossenschaft in competition law matters is often limited. For example, some claimants may hope for quick settlement, while others may be seeking the highest possible return; or some claimants may have access to high-quality evidence for their claims, while others may not.
In practice, the ‘assignment model’ has become the prevalent method in Germany to bundle claims. Under the assignment model, claimants assign their claims to a third party, which subsequently brings these claims in its own name. The assignment model is notably offered and used by specialised competition law claims companies and litigation funding firms. However, the assignment model has encountered a number of procedural hurdles in practice. Some courts have argued that assigning claims might unfairly shift the cost risks to the defendants; while others have held that the assignment model infringed the Legal Services Act. Following a judgment by the Federal Court of Justice in 2021 and legislative amendments to the Legal Services Act, most of the legal issues appear to be resolved. The assignment model is thus clearly an option to bundle claims. Whether it is a practical option – notably in comparison to the options available in other jurisdictions – remains to be seen.
Germany
Answer ... Not applicable.
Germany
Answer ... Not applicable.