The Bundeskartellamt has today published a guidance document on the requirements placed on remedies in merger control and their implementation. Remedies have proven to be an important instrument in merger control practice. They can enable the clearance of a merger under conditions and obligations even if it actually fulfils the requirements for a prohibition.

The Bundeskartellamt examines around 1,000 to 2,000 mergers a year. Only few of them raise competition problems. However, in concentrated markets, in particular, additional mergers can have negative effects on market structures and the competitive behaviour of companies and can thus significantly impede effective competition. The Bundeskartellamt has to prohibit these mergers unless the competition problems they raise can be addressed through appropriate remedies.

Andreas Mundt, President of Bundeskartellamt: "With this guidance document we are providing companies with important information and making the way we assess commitments in merger control more transparent. If a merger raises competition problems, divestiture remedies are often the best way to prevent a structural deterioration of the conditions of competition. These usually take the form of an up-front buyer solution to ensure that the competition problems can be effectively and quickly remedied. Where appropriate, other remedies may also be feasible in individual cases, e.g. with a view to quickly open up the market to new competitors. The purpose of the guidance document is to help companies assess for themselves their commitment proposals as accurately as possible in order to save time and expense and realise to the greatest extent possible the economic benefits they hope to achieve with the merger."

The guidance document explains under which criteria the Bundeskartellamt assesses commitments offered by companies. In this way companies and their lawyers are better able to judge for themselves which requirements they have to fulfil in order to remedy the identified impediment to competition and thus enable clearance of their merger subject to conditions and obligations. Finally, the guidance document describes the procedure for the proposal and implementation of remedies. It also deals in detail with the tasks of trustees which often play an important role in the implementation of remedies.

Before its publication the guidance document was presented for public consultation. The Bundeskartellamt received comments from expert circles in Germany and abroad. Many comments have been followed up and some points in the draft revised accordingly.

The Guidance Document on Merger Remedies is available on the Bundeskartellamt's website. An English translation of the text is also available.