The estimation of damages is a key element in commercial disputes and anti-competitive conduct cases and the necessary first step to damages claims. Microeconomix intervenes to evaluate damages to the economy due to an infringement to articles 101 and 102 TFEU, as well as to evaluate the individual or collective prejudices suffered by customers or suppliers as a result of anticompetitive practices.

Economic analysis provides a complete tools box of methodologies, models and quantitative techniques allowing evaluating the damages and prejudices. Microeconomix uses these tools to provide robust damages estimates based on credible counterfactuals. Assessing the amount of damages requires evaluating outcomes (such as prices, sales and profits) that would have been "but-for" the particular action. Elaborating a precise counterfactual scenario requires a detailed analysis of the following questions:

• What type of competition law infringement is causing the harm? Is it a cartel causing an overcharge harm, or exclusionary conduct causing a fall in sales or lack of market access?
• What types of claimant have been harmed? Are they end-consumers or intermediate producers which purchased goods from the cartel, or are they competitors of the cartel members?
• What are the characteristics of the market concerned (mature or growing market) and what impact do they have on the counterfactual analysis?

Microeconomix uses well-known methods such as comparator-based, financial-analysis-based and market-structures based approaches to evaluate damages. We estimate the outcomes (such as prices, sales and profits) that would have been "but-for" the particular action using relatively detailed empirical analyses or advanced econometric techniques and controlling for all factors that can influence market outcomes and that may have been changing over time. The estimated “but-for” outcomes is then compared with the actual outcomes in order to estimate the damages caused by the action in question. Combing various quantitative methods with detailed market research and a profound understanding of the economics of the underlying industry allows us to assure the validity, the accuracy and the consistency of our damage estimations.

Microeconomix also estimate damages in international arbitration of intellectual property rights dispute. We can determine damages arising from patent infringement, exploitation of the intellectual property, breaches of contract, expropriations, regulatory takings or the termination of the contractual arrangement. We use recognized valuation methods such as book value, replacement value, liquidation value, discounted cash flow (DCF), and other methods.

Examples of our work include:

• 2009 - Microeconomix advised Orange France and conducted a critical evaluation of the estimation of the alleged damages suffered by a producer of Internet modems

• 2008 - Microeconomix estimated damages suffered by EDF as a result of anticompetitive practices of its suppliers.

• 2007 - Microeconomix advised Masterfoods in the estimation of damages resulting from exclusive contracts to supply ice-creams and the provision of exclusive freezers

• 2007 - Microeconomix conducted a critical evaluation of the estimation of damages suffered by a Dutch supplier of electric materials and damages to the economy

• 2006 - Following the request of Total France, Microeconomix estimated the cost increase experienced by Dyneff after a sea-line had been closed in southern France. Microeconomix testified in front of the court in Narbonne and later the Court of Appeal in Montpellier as well as answered questions of the juridical expert

• 2006 - Following the request of GlaxoSmithKline, Microeconomix estimated damages to the economy resulting from antitrust practices in the pharmaceutical sector in the period 1997-2005 (Decision of the French Conseil de la concurrence No.07-D-09 of 14 Mar 2007)

• 2003 - Following the request of Atofina, Microeconomix conducted an evaluation of economic consequences of cartel activities (analyze of the evolution of prices and profitability ratios) in the chemical industry in the period 1971-2002 (Decision of the European Commission No. C(2003)4570 of 10 Dec 2003).