German Court Seeks EU Guidance on Executive Liability for Cartel Fines

The Federal Court of Justice asks the European Court of Justice to clarify if executives can be held personally liable for cartel penalties under EU law.

The Federal Court of Justice (BGH) is reviewing whether companies can demand reimbursement from executives for cartel-related fines they have paid.
The case involves a former executive of two stainless steel companies fined for participating in a price-fixing cartel from 2002 to 2015.
Germany's Federal Cartel Office imposed €355 million in fines across 10 companies, two industry associations, and 17 individuals for anti-competitive practices in the steel industry.
The BGH's referral to the European Court of Justice (ECJ) centers on whether such reimbursement claims are compatible with EU competition law principles.
A ruling permitting executive liability could expose directors to significant financial risks, often exceeding the coverage of Directors-and-Officers (D&O) insurance policies.