Economics Minister Habeck speaks of the biggest reform of competition law in decades: the Cartel Office should be given more power. Critics warn against a blank check.
The Federal Cartel Office should get more “bite” – and consumers more protection against excessive prices. The federal cabinet launched a reform of competition law on Wednesday. The cartel office should get more rights of intervention. Economics Minister Robert Habeck (Greens) said in Berlin that the aim of the law was to protect consumers – “that is, to ensure that prices are not kept artificially high”. Justice Minister Marco Buschmann (FDP) spoke of a cartel office “with bite”. Criticism of the plans came from the opposition and business.
According to the Ministry of Economic Affairs and the Ministry of Justice, the planned amendments to the law against restraints of competition should make it easier to eliminate disruptions to competition in the interests of consumers. The intervention instruments of antitrust law should be sharpened – where the market structure stands in the way of competition, for example because there are only a few suppliers in the market and parallel price developments to the detriment of consumers can be observed regularly.
The trigger for the reform was the explosion in fuel prices a year ago. At that time, circles in the Ministry of Economics said that when oil prices fell, petrol prices did not fall to the same extent. In the meantime, fuel prices have fallen again.
Authority to receive “sharp sword”.
So far, the cartel office can intervene in antitrust violations, as Habeck said. A new instrument is now to be introduced: According to the draft law, the Cartel Office should then also be able to intervene in cases of significant and ongoing “disruptions” to competition. A unilateral supply or demand power is mentioned.
The Cartel Office should be able to order various measures. This is intended to facilitate market access and stop concentration tendencies. As a “ultima ratio” (last resort), companies should be able to be unbundled in “extreme cases”. Buschmann said that this “sharp sword” should only be able to take effect under very narrow conditions.
The Cartel Office should also be able to skim off “inadmissibly acquired profits” more easily in the case of antitrust violations, as Habeck said. The use of the planned new intervention tools should not relate to cases of particular innovative strength, he said, referring to the company Biontech, which had developed a corona vaccine.
The President of the Bundeskartellamt, Andreas Mundt, welcomed the goal of making antitrust law even more effective. However, the new power to intervene that is now planned is significantly narrower than the “ambitious” original draft by the Ministry of Economic Affairs.
Economy reacts critically
The CSU economic politician Hansjörg Durz criticized that the Federal Cartel Office should get a “blank check” to combat market power. Companies could no longer clearly foresee from what size or what behavior they would come into the focus of the cartel office.
The chief legal officer of the German Chamber of Industry and Commerce, Stephan Wernicke, spoke of a paradigm shift towards state market design as a last resort. “Lawful action no longer protects companies from state intervention as soon as the Federal Cartel Office, in its wide discretion, considers competition to be disturbed over a longer period of time.” Dirk Jandura, President of the Foreign Trade Association BGA, accused the federal government of damaging Germany as a business location. Companies acting in accordance with the law would have to fear massive interventions by the Federal Cartel Office up to and including breaking up.
On the other hand, Greens boss Omid Nouripour said that competition law would be more targeted and effective. “In this way we can protect consumers from artificially high prices in the future.” SPD parliamentary group leader Verena Hubertz said that there should be clear limits to abusive practices and profits that result from market disruption. “Price explosions like those seen recently in the case of fuel as a result of the Russian war of aggression must not be repeated.” Green Group Vice President Andreas Audretsch commented: “Competition law is getting teeth and that’s a good thing in view of the growing power of a few large companies.” (dpa)