The Spanish Supreme Court (Administrative Chamber) has dismissed Lactalis\u2019 appeal and confirmed the lawfulness of the CNMC\u2019s 2019 decision in the Spanish Milk Cartel case, as well as the earlier judgment of the Audiencia Nacional.
The ruling establishes an important precedent on competition enforcement procedure. In particular, the Court confirms that, under the legal framework applicable before the 2023 reform of Article 50 of the Spanish Competition Act, the proposal for decision in cartel proceedings was not required to include a proposed fine. The Supreme Court held that the specific procedural regime under Spanish competition law was exhaustive and displaced the supplementary application of the general administrative procedure rules.
The Court also confirmed that this interpretation is fully consistent with EU law and the case law of the European Courts, under which the statement of objections must identify the factual and legal basis of the allegations and the factors relevant to the calculation of any fine, but need not specify the precise amount of the penalty envisaged.
The judgment is particularly significant for the ongoing damages litigation arising from the Milk Cartel.
By confirming the CNMC decision against Lactalis, the Supreme Court has definitively upheld the finding that Lactalis participated in a single and continuous infringement of competition law. That infringement finding is binding on Spanish civil courts in follow-on damages actions, providing further legal certainty for affected dairy farmers seeking compensation.
O Seixo SAT was represented before the Supreme Court by Paul Hitchings, Lead Counsel on the case, together with Alejandro Castilla de los Santos and with the suport of the Hitchings & Gonzalez team.
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