Please stop. This is neither a LH issue nor something covered by EC Reg. 261/04. Period.

The delayed flight was ANA, but the pax accepted to fly in C on a direct flight to MUC rather than LH F from PEK; I'm sure that if the OP had insisted on traveling in LH F from PEK this would have been possible - subject to availability and with much longer travel time. The pax accepted the most sensible thing; fly on a direct flight but in lower service class. I'm sorry, but this is not inv. downgrade and no comp. is due.

I second that the pax should be able to get a refund of the difference between an F ward and C award JPN-Oslo by addressing this with Eurobonus.