Manipulated Euribor: CJEU blocks automatic nullity

1. The fact

   The matter originates from the finding of an unlawful agreement among major international banking institutions, aimed at manipulating the Euribor rate between 2005 and 2008. The investigation revealed that traders from the involved institutions exchanged confidential information to steer the parameter to their advantage. In Italy, the litigation stage saw a surge in claims following a Court of Cassation order that appeared to pave the way for the nullity of all Euribor-indexed mortgages entered into during that period.

   However, the framework shifted with the preliminary reference to the Court of Justice of the European Union. The CJEU was asked to clarify whether nullity resulting from an unlawful upstream agreement could automatically invalidate downstream contracts concluded with banks that did not participate in the cartel. The orientation expressed on September 3, 2026, with case C-60/25 Livronsa confirms that there is no automatic nullity under Article 101(2) TFEU, excluding that the issue should be resolved through the transparency test.

2. 

   The rules at play

   1. Article 101 TFEU prohibits agreements restrictive of competition and, in paragraph 2, constitutes the true reasoning upon which the CJEU based its ruling regarding the validity of downstream contracts.
   2. Directive 93/13/EEC regulates unfair terms in consumer contracts, but the CJEU clarified that its transparency test is not the applicable parameter to assess the validity of the rate in this context.
   3. Article 1418 of the Civil Code governs contract nullity for conflict with mandatory rules, while Article 1346 of the Civil Code stipulates that the object of the contract must be determined or determinable, a requirement challenged by the alteration of the reference parameter.

3. What the jurisprudence says

   National jurisprudence initially adopted a strict approach, holding that the finding of an antitrust violation resulted in the nullity of the interest determination clause for any contract referencing the Euribor of the affected period. This approach viewed the parameter itself as irremediably flawed, rendering the clause void even when the lending bank had not participated in the unlawful cartel.

   However, the recent intervention by the CJEU corrected this course, establishing that a breach of competition law committed by third parties does not entail the automatic invalidity of the contract between the bank and its customer. The European judges clarified that the primary remedy for the consumer lies in damages. The nullity of the clause does not automatically derive from Article 101(2) TFEU for downstream contracts, and the Court excluded that such invalidity could be based on the transparency test of the unfair terms directive.

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8. What it teaches professionals

   1. Avoid basing the downstream nullity claim on Article 101(2) TFEU or on the lack of transparency of the clause, as these arguments have been rejected by European jurisprudence.
   2. Carefully evaluate the option of bringing an action for damages as an alternative or subordinate remedy to the action for nullity under Art. 1418 of the Civil Code, as the former is often more viable following the CJEU clarifications.
   3. Prepare expert technical reports that do not merely denounce the parameter manipulation, but quantify the actual deviation between the applied rate and the rate that would have been formed in the absence of the unlawful cartel.

References: Sentenza CGUE C-60/25 LivronsaArticolo 101(2) TFUEDirettiva 93/13/CEEArticolo 1418 c.c.Articolo 1346 c.c.Direttiva 2014/104/UE

Editorial oversight: Avv. Federico Papa·ICAMUpdated 17 September 2026Content drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction