Cross-Border Application of the Ne Bis In Idem Principle in the Context of Administrative Penalties Criminal in Nature Imposed for Unlawful Commercial Practices

Administrative penalties criminal in nature imposed by regulatory authorities in a Member State following a criminal conviction in a different State based on identical facts against the same legal person may constitute an infringement of the ne bis in idem principle enshrined in Article 50 CFREU. Article 52(1) CFREU provides for limitations to the application of that principle, which are contingent on compliance the principle of proportionality and sufficient coordination of proceedings and penalties. In Volkswagen Group Italia SpA (VWGI) and Volkswagen Aktiengesellschaft (VWAG) C-27/22, the CJEU provided further clarification the conditions under which limitations to Article 50 CFREU may be justified in the context of administrative penalties criminal in nature imposed for unlawful commercial practices. This article examines the significance and implications of the judgment, which is the first CJEU ruling on duplication of proceedings and penalties by two states enforcing different legal objectives.