• +49 (30) 804 03 588 | +49 (0)157 322 38619 | +33 (0) 6 79183704
  • sybille.boese-tarsia@sbt-rechtsanwaeltin.eu
  • Nickisch-Rosenegkstrasse 9, 14129 Berlin
  • +49 (30) 804 03 588 | +49 (0)157 322 38619 | +33 (0) 6 79183704
  • sybille.boese-tarsia@sbt-rechtsanwaeltin.eu
  • Nickisch-Rosenegkstrasse 9, 14129 Berlin
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POSTED IN: Uncategorized

German anti-trust authority has been conferred extended competences

Since its investigation into the Facebook behaviour on the German market, end of 2016, this was to be expected: With the 9th Amendment to the German Competition Act, which was promulgated on 8 June 2017, the Bundeskartellamt has been given new competences in the area of consumer protection (upon the example of its Dutch colleagues?).

This may prove a powerful tool in the context of the GRDP to be in force as of May 2018. The president of the German anti-trust authority, A. Mundt, does not hide his satisfaction:

“… In the digital economy, in particular, it only takes one illegal measure by a company to harm millions of consumers. This is why it makes sense to back up the already well-established system of privately enforced consumer protection. With the help of sector inquiries we will now start to make a tangible contribution towards better consumer protection and identify possible shortcomings….”.

In clear: from now on the German Bundeskartellamt can launch a sector inquiry where there is a reasonable suspicion that consumer law provisions have been severely violated, such as the Act against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb (UWG)) or legal requirements for general terms and conditions. Sector inquiries are not targeted against individual companies, their purpose is to thoroughly examine the conditions on a specific market.

In future, such inquiries can also be launched with a view to consumer protection if there is reason to suspect that significant, permanent or repeated infringements have occurred which affect a large number of consumers. In addition, the Bundeskartellamt can now act as amicus curiae in court proceedings relating to such infringements.

In the digital economy in particular where investigations are men & cost intense the Bundeskartellamt has more manpower, more financial means and political influence to “scare”, and thus discourage misbehaviour (e.g.: of big digital company players). It can prove to be much more effective, compared to the consumer protection authority. This in particular is useful, if (as of next year) fines under the New EU Data Privacy rules add up to infringements in anti-trust behaviour. Both Privacy and anti-trust rules provide for very high fines in case of infringement, and if accumulated, may even scare the wealthiest companies.