Bundeskartellamt imposes fines for vertical price-fixing agreements
The Bundeskartellamt, Germany“s Federal Cartel Office, has concluded the final proceedings in relation to price fixing in the food industry and, according to its own statements, imposed fines totalling around 18 million euros
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: According to its own statements, the Bundeskartellamt“s investigations into vertical price-fixing in the food industry are among the costliest fine proceedings that the Office has conducted to date. With the final three proceedings having since also been concluded and fines imposed, the investigations that began in January of 2010 are now over.
The Bundeskartellamt had investigated illicit price-fixing agreements between manufacturers and trading companies concerning confectionary goods, coffee, animal food, beer as well as personal care products. In the last three proceedings, fines were imposed against merchants on account of illegal price-fixing arrangements pertaining to various beer products. According to information released by the Bundeskartellamt on December 15, 2016, the companies concerned can still appeal before the Oberlandesgericht (OLG) Düsseldorf [Higher Regional Court of Düsseldorf].
In the case in question, information from the Bundeskartellamt indicates that a total of 38 individual fines have been imposed against 27 companies due to vertical price-fixing agreements. The total sum of these fines amounts to around 260 million euros.
In the case of vertical arrangements, prices are fixed between manufacturers and trading companies. This primarily affects consumers, as price-fixing agreements hinder fair competition and thus violate antitrust law.
These kinds of violations of antitrust law can be met with severe sanctions, as the fines issued demonstrate. That being said, fines are not the only possible consequence; the cartelists could be faced with damages claims or additional repercussions under criminal law as well. Should this be the case, it is also possible for the executive bodies of companies involved in illegal arrangements to be held liable.
Violations of antitrust law do not have to be nearly as blatant as in the case of illegal price-fixing agreements. Even seemingly insignificant contractual clauses can give rise to an infringement and result in appropriate consequences. It is therefore advisable to have agreements examined by competent lawyers, including with a view to any consequences under antitrust law. Appropriate legal advice is also called for if violations of antitrust law or competition law have already occurred and claims need to be seen off or enforced.
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