On December 3, 2019, the Monopoly Commission, an advisory board of the German Government, published its eleventh sector report on postal markets.[1] The Monopoly Commission’s findings correspond to a great extent to those of its 2017 report[2].
FCO Clears Ciscos’s Acquisition of Acacia Communications
On November 11, 2019, the FCO approved the acquisition of Acacia Communications, Inc. (“Acacia”) by Cisco Systems, Inc. (“Cisco”).[1] The FCO had asked the merging parties to withdraw their notification to have more time to define the relevant markets but cleared the transaction in phase 1 after the parties had resubmitted their notification one month later.
Joint Study on Algorithms by German and French Competition Authorities
On November 6, 2019, the FCO and the French Competition Authority (“ADLC”) presented a joint study on “Algorithms and Competition.”[1] The study focuses on algorithms used for dynamic price setting and their potential effects on competition, particularly in the form of collusion, and contains important insights for companies utilizing third- party algorithms.
Working Group On Competition Law Discussed Changes To The European Vertical Block Exemption Regulation
On October 10, 2019, the Working Group on Competition Law held its annual meeting in Bonn. The FCO and more than 120 competition law experts discussed revisions to the European Vertical Block Exemption Regulation (“VBER”)[1] in light of the digital transformation of the economy.[2] In preparation for this meeting, the FCO had published a comprehensive background paper,[3] setting out the need for adaption and possible adjustments to the VBER to address online distribution and other challenges posed by the digital transformation of the economy.
FCO Clears Rewe Group’s Lekkerland Acquisition, While Austrian Authority Blocks Austrian Part Of The Deal
On October 9, 2019, the FCO unconditionally cleared Rewe-Zentralfinanz eG’s (“Rewe”) acquisition of wholesaler Lekkerland AG & Co. KG (“Lekkerland”).[1] Rewe is mainly active as a food retailer, but also as a food wholesaler, supplying fresh and convenience food to Aral AG’s gas station shops. Lekkerland is a German wholesaler for food and tobacco products whose principal clients are gas station shops, convenience stores and kiosks.
FCJ Partially Quashes Judgement on Adblock Plus
New Guidelines on the Control of Abusive Behavior in the Electricity Generation and Wholesale Trade Sector
On September 27, 2019, the FCO and the Federal Network Agency (“FNA”) jointly published guidelines on the control of the abuse of a dominant position in relation to electricity generation and wholesale trade (“Guidelines”).[1]
FCO Revokes Antitrust Exemption for Dry Building Materials Cartels
On September 20, 2019, the FCO prohibited SAKRET Trockenbaustoffe Europa GmbH & Co. KG (“SAKRET Europe”) from continuing to undertake distribution activities for its shareholders and sublicensees of the SAKRET brand regarding the sale of dry building materials.[1] In doing so, the FCO revoked an exemption it had granted back in 1982.
Monopolies Commission Publishes 7th Sector Report on Energy
On September 18, 2019, the Monopolies Commission published its biennial sector report on the development of competition in the German electricity and gas markets.[1] The report identifies three main areas of competition concerns: (i) monopolistic tendencies in connection with the expansion of e-mobility, (ii) insufficient competition for onshore wind energy tenders, and (iii) potential abusive pricing practices in electricity wholesale trading:
FCO Prevents Alliance of Purchasing Organizations for Furniture
On September 12, 2019, the FCO closed administrative proceedings against two joint purchasing organizations for furniture, VME Union GmbH and KHG GmbH & Co. KG, after the organizations had abandoned their plans to enter into an alliance.[1]