New German antitrust fining guidelines — less predictability and larger fines on the horizon
The German competition authority (Bundeskartellamt) has published new guidelines for the calculation of fines for antitrust infringements, which will be applicable with immediate effect. These changes introduce less predictability and potentially larger fines for antitrust infringement in Germany.
Under German law, fines imposed on a company involved in an antitrust infringement can be set as high as 10 per cent of annual group worldwide turnover. Under its former fining guidelines, the Bundeskartellamt set fines primarily as a percentage of the turnover a company had achieved in the cartel-affected market during the cartel period. Where the resulting amount exceeded 10 per cent of annual group worldwide turnover, the Bundeskartellamt capped the final amount of fine at that level. This approach mirrored that taken by the European Commission in its fine setting practice.
In a 26 February judgment concerning a cement cartel, the Federal Supreme Court found this practice unlawful and held that the 10 per cent maximum fine does not constitute a cap but the upper limit of the fining range. The court held that the Bundeskartellamt may only impose fines up to the 10 per cent ceiling for the worst conceivable antitrust infringements (e.g. price fixing over a long period of time)…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The decision of the US Court of Appeals has raised questions about how issuers should present their disclosures on conflict minerals under Exchange Act Rule 13p-1 and Form SD.
An interesting judgment was delivered by the Honourable J Majiki on 19 November 2013 in the Eastern Cape High Court, Port Elizabeth.
Analysis from The Lawyer
As international firms question their future in these small, closely linked markets, local lawyers too are eyeing the business environment with caution
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump