Bundeskartellamt searches Trademark Association again on Suspicion of Boycott Activities

With the assistance of the Criminal Investigation Department the Bundeskartellamt today searched the premises of the Trademark Association. This investigation follows up suspicions that the Trademark Association has again called for a boycott against a provider of waste management solutions for sales packaging, the Belland Vision GmbH (“Belland”).

The German Packaging Ordinance obliges producers of goods sold in packaging and retailers to take back used sales packaging. The producers can fulfil this obligation either themselves or through a provider of so-called waste management solutions. So far most companies have participated in the dual system for household-oriented collection of used sales packaging operated by the Der Grüne Punkt – Duales System Deutschland AG (The Green Dot – Dual System) (DSD). The fact that alternative dual systems have entered the market and that waste management solutions are now available indicate that competitive solutions are also possible in this sector. In view of this calls for boycotts aiming to prevent the market entry of other companies are all the more serious.

In early 2003 the Bundeskartellamt already imposed fines in millions against the Trademark Association and other associations or companies. According to the Bundeskartellamt’s findings at that time the Trademark Association had repeatedly called upon its members not to use the waste management solutions offered by Belland and to license sales packaging exclusively with DSD. The Trademark Association’s appeal against the Bundeskartellamt’s administrative order is currently pending before the Düsseldorf Higher Regional Court.

The President of the Bundeskartellamt, Ulf Böge: “Competition on the markets for the collection and recycling of sales packaging is still rather weak. The entry to the market of new providers of waste management solutions is therefore a welcome development, not least for the consumers.”

Dr Böge said it was incomprehensible why the Trademark Association was exposing itself again to the suspicion of calling for a boycott against alternative providers of waste management solutions, despite the fact that the Bundeskartellamt had already imposed a fine on such behaviour and without awaiting judicial clarification. This was all the more incomprehensible because the majority of the branded goods industry was hardly likely to lend its support to such conduct.