Germany: Federal Cartel Office bans food retail giant EDEKA from squeezing suppliers, EDEKA goes to court
The German Federal Cartel Office (Bundeskartellamt, or BKartA) has issued a decision stating that attempts by Germany’s largest supermarket, EDEKA, to force suppliers to grant it so-called ‘wedding rebates’, in the form of additional payments and benefits, following its acquisition of Plus in 2009 were abusive and unlawful.
After a five-year investigation, BKartA’s decision states that EDEKA ‘violated’ Germany’s Anzapfverbot law, a specific law that aims to protect suppliers against buyer power and prohibits a retailer from requiring suppliers to grant it certain benefits ‘without any objective justification’. EDEKA has challenged this ruling and filed a complaint to the Düsseldorf Court of Appeals (Oberlandesgericht, or OLG Düsseldorf).
Under the German Act against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen, or GWB), dominant undertakings may not use their market position to require undertakings to grant them advantages or benefits without any objective justification (known as the prohibition of ‘tapping’, or ‘Anzapfverbot’). This ban also applies to non-dominant undertakings on which other undertakings ‘depend in such a way that reasonable possibilities of resorting to other undertakings do not exist’ (so-called ‘relative market power’)…
Click on the link below to read the rest of the Eversheds briefing.
News from Eversheds
News from The Lawyer
Briefings from Eversheds
The most important advantage of international arbitration is the enforceability of its result, as a deal is only as reliable as the mechanism by which it can be made legally enforceable.
The Court of Appeal decision in CLP Holding Company Ltd v Singh (1) Kaur (2) prompts consideration of a common oversight in dealing with dilapidations claims.
Analysis from The Lawyer
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions
‘Exotic’ investors and opportunities for legal work beyond M&A feature in The Lawyer’s high-level roundtable debate on south-east Europe