In the proceedings concerning the marketing of round timber by the Federal State of Baden-Württemberg, the Bundeskartellamt has today sent a draft decision to the state and asked for its comments. According to the authority's preliminary assessment the joint marketing of round timber as practised so far by Baden-Württemberg violates competition law.

Andreas Mundt, President of the Bundeskartellamt: "In this case we are faced with a conflict of interests between the importance of the forest as a place of nature and recreation and its economic functions. Competition law does not encroach on the sovereign tasks of the forestry administration. At the same time we as the federal competition authority cannot ignore the fact that timber marketing and its related services constitute a market in Germany worth billilons which has to comply with competition standards. Examples from other federal states show that this can work very well.”

In 2012 the Bundeskartellamt initiated a proceeding against the Federal State of Baden-Württemberg and its joint marketing of timber. The move was triggered by various complaints from the sawmill and wood industry. Via its state company "Forst BW" Baden-Württemberg markets timber not only from its own state forest but also from communal and private forests, which corresponds to around 60% of the total volume of round timber in Baden-Württemberg. Forst BW negotiates the prices for all forest owners, determines their customers and sets the conditions of sale. According to the Bundeskartellamt's assessment so far this kind of cooperation between competitors is prohibited.

The authority had already informed the state of Baden-Württemberg of its concerns in December 2013. Thereupon commitments were agreed in close cooperation with the Bundeskartellamt to eliminate the competition concerns. However, in January 2015 Baden-Württemberg withdrew these commitments (see press release of 26 January 2015).

Andreas Mundt: "The federal state of Baden-Württemberg had already found a viable solution for the necessary separate marketing of timber from state forests and from communal and private forests which was consistent with competition law. After the state had withdrawn these commitments we had no choice but to continue with the proceedings." Baden-Württemberg now has until 18 May 2015 to comment on the draft decision.