Competition Law at Germany
Sure! Here’s an overview of Competition Law in Germany:
🇩🇪 Competition Law in Germany
Germany has one of the most developed and influential competition law regimes in Europe, closely aligned with European Union competition law.
1. Legal Framework
Act Against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen - GWB)
This is the main statute governing competition law in Germany. It regulates anti-competitive agreements, abuse of dominant market positions, and merger control.
European Union Competition Law
Because Germany is an EU member, EU competition law—especially Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU)—also applies and is enforced in coordination with German law.
2. Key Provisions
Anti-competitive Agreements (Cartels)
Agreements between competitors that restrict competition (like price-fixing or market sharing) are prohibited. The GWB and EU law impose strict penalties on cartels.
Abuse of Dominant Position
Companies with significant market power cannot abuse this position by engaging in exclusionary or exploitative practices.
Merger Control
Mergers and acquisitions exceeding certain thresholds must be notified and approved by the Federal Cartel Office (Bundeskartellamt) before completion to prevent harm to competition.
3. Enforcement Authorities
Federal Cartel Office (Bundeskartellamt)
The primary competition authority in Germany, responsible for investigating and prosecuting anti-competitive practices and reviewing mergers.
Courts
Specialized courts, including the Higher Regional Courts and the Federal Court of Justice, hear competition law disputes.
4. Sanctions and Penalties
Administrative fines can reach up to 10% of the global annual turnover of the offending company.
Injunctions and cease-and-desist orders.
Private parties may claim damages resulting from anti-competitive behavior.
5. Recent Trends
Increased scrutiny of digital platforms and tech companies.
Greater enforcement on abuse of market dominance.
Enhanced cooperation with the European Commission on cross-border cases.
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