"Sausage gap" - Further fines amounting to approx. 110 million euros cease to apply because of internal restructuring measures

26.06.2017

In the sausage cartel case the Bundeskartellamt has to terminate further proceedings because the companies were able to make use of a legal loophole which existed until recently. The orders imposing fines amounting to 99.6 million euros on Bell Deutschland Holding GmbH and 3.2 million euros on Marten Vertriebs GmbH & Co. KG as well as 6.9 million euros on Sickendiek Fleischwarenfabrik GmbH & Co. KG had to be revoked because of internal restructuring measures taken by the companies.

Andreas Mundt, President of the Bundeskartellamt: "The termination of the proceedings could not be prevented because of the legal situation which was in place until recently. This means that in these proceedings alone fines amounting to around 238 million euros could not be collected. With the current amendment to the German Competition Act (GWB) this loophole has now been closed for new cases.  Now corporate liability will apply, in line with provisions at European level. Controlling parent companies will also be responsible for paying fines. This will guarantee the effectiveness of penalties against large companies and prevent the avoidance of payment."

The Bundeskartellamt previously had to terminate fine proceedings against two companies of the "Zur Mühlen" group.  The orders imposing fines totalling 128 million euros on Böklunder Plumrose GmbH & Co. KG, Böklund, and Könecke Fleischwarenfabrik GmbH & Co. KG, Bremen, had also become invalid due to internal restructuring measures taken by the companies (see Bundeskartellamt press release of 19 October 2016).

On 15 July 2014 the Bundeskartellamt had imposed fines totalling around 338 million euros on 21 sausage manufacturers and 33 individuals involved (see Bundeskartellamt press release of 15 July 2014). The proceedings against eleven companies and 15 individuals involved have in the meantime been concluded with final fines (totalling approx. 71 million euros). Appeals have been filed against the other fines imposed. Orders imposing fines against five companies totalling approx. 25 million euros are still pending.


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