Bundeskartellamt - Review of 2013

27.12.2013

Andreas Mundt, President of the Bundeskartellamt: "One main reason for the continuing success of the German economy is the competitive situation in its domestic markets. However, competition can only function if there are certain rules which everyone has to comply with. The Bundeskartellamt has the responsible role of a referee, which is to ensure that these rules are kept."

Cartel prosecution:

In 2013 the Bundeskartellamt imposed fines amounting to around € 240 million on 54 companies and 52 individuals in 11 cartel cases. These include the conclusion of the rail cartel case and fines against companies in the milling industry and manufacturers of confectionery products, household porcelain and drugstore products. Furthermore, the authority published its revised Guidelines on the setting of fines.
Andreas Mundt: "We have become more effective in cartel prosecution during the past few years and this trend continues. In 17 dawn raids at 84 companies and private residences during the year 2013, the Bundeskartellamt, with the help of the criminal investigation departments and public prosecutors, was able to secure substantial new evidence of illegal cartel agreements. More than 300 staff at the Bundeskartellamt and other authorities were deployed."

Merger control

With around 1,100 notified mergers, the number of cases subject to merger control stabilized at the level of the previous year. 18 cases were closely examined in second phase proceedings. Six of these were cleared after examination, among them was the acquisition of the daily Frankfurter Rundschau by Frankfurter Allgemeine Zeitung GmbH. In spite of competition concerns this merger was cleared because - due to the Frankfurter Rundschau's economic difficulties - the project fulfilled the requirements for clearance under the failing company defence. The merger between the cash handling services companies Prosegur and Brink‘s was cleared subject to conditions, and plans by the cable network operator Kabel Deutschland to acquire its rival Tele Columbus were prohibited. The participation of the Asklepios Group in the rival clinic Rhön-Klinikum was retroactively prohibited because the parties failed to fulfil a divestiture obligation. Two further notified merger projects were withdrawn by the parties concerned and seven proceedings are still undergoing second phase examination proceedings. In June 2013, the eighth amendment to the German Act against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen, GWB) came into force. The comprehensive changes this involved, e.g. the introduction of the SIEC test in merger control, were smoothly incorporated into the authority’s working processes.

Internet economy

Competition issues concerning e-commerce in wide sectors of the economy are increasingly coming into the focus of the Bundeskartellamt's work. Andreas Mundt: "We are assuming the role of an international pioneer in this important sector. New sales channels and business models raise new competition problems. Here we need to define bit by bit the boundaries of what is admissible without ignoring the capacity for innovation in these still very young markets."
The authority's proceedings against HRS on account of most favoured customer clauses were concluded with the prohibition of these clauses. Amazon dismissed its price parity clause after the Bundeskartellamt had opposed to this practise. Further investigations targeted selective distribution systems and dual pricing which can restrict trade via individual platforms or online sales in general. In another case a planned video-on-demand platform to be operated by the public service broadcasters was abandoned by the parties in view of competition concerns expressed by the Bundeskartellamt. Andreas Mundt: "We have nothing against video-on-demand platforms, not even jointly operated platforms. But competitors cannot simply agree on the prices and content of the products made available via this platform. However, the broadcasters were not prepared to make the modifications we requested."

Market Transparency Unit for Fuels

In 2013 the Bundeskartellamt set up the Market Transparency Unit for Fuels which enables consumers to call up in real time information on fuel prices at petrol stations all over the country. Motorists can for the first time receive comprehensive and reliable information for price comparisons. Andreas Mundt: "The more motorists use this new tool to select the petrol station offering the best price, the greater the pressure will be on the suppliers to keep their prices competitive.“

Co-operation with other competition authorities

Also in 2013, the Bundeskartellamt continued to cooperate closely with the European competition authorities and the European Commission. In several cases this co-operation resulted in the successful conclusion of proceedings. With the election of Andreas Mundt as Chairman of the International Competition Network the authority has also assumed a leading role in the global network of competition authorities.

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