Anatomical Snapshot of Computational Techniques for Damages/Compensation Calculation in Antitrust Injury: An Econometric Analysis of Law of Antitrust Damages

Abstract

Private enforcement of competition law in India has remained an unfulfilled promise for an extended period. Although the Competition Act of 2002 allows for private enforcement, providing injured parties the opportunity to claim compensation, no cases have been decided by the Competition Commission of India thus far. This can be attributed to the lack of adequate guidance for assessing compensation. The evaluation of compensation or damages is a complex task, requiring a profound understanding of applied economics and econometrics. As mentioned earlier, the absence of decided cases in Indian competition policy hinders the development of guidance on assessment techniques for calculating compensation or damages. This paper seeks to elucidate the economics of damages by exploring various facets, including how traditional tools of damages calculations fall short in addressing the complex and unique challenges posed by antitrust laws. Furthermore, the paper delves into jurisprudence and economic models developed in advanced antitrust regimes such as that of the United States of America (“USA”) and the European Union (“EU”). Additionally, the paper explores the aspect of passing-on and how it further complicates the assessment of damages. Conclusively, this paper provides a basic economic framework for the assessment of damages that can be applied in the Indian context.