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Food Retailers Subject to Sector Inquiry
The German Bundeskartellamt (BKartA) initiated a market examination of the food retail sector on September 15, 2011 (Link to the press release, German only). Comprehensive questionnaires were sent to 21 food retail companies and around 200 food producers. The research is part of the BKartA’s sector inquiry launched in February.
The BKartA is examining the markets for the procurement of food and luxury food products by food retailers. The dominance of the four leading trading companies is perceived to be especially critical. They have come to control around 85% of the total sales market in Germany. ”Since there is such a strong concentration, we need to survey the power structures between retailers and producers” said the president of the BKartA, Andreas Mundt
The sector inquiry will be conducted in two stages:
- First, the market structures for various goods and product markets will be examined. As noted above, the BKartA has sent comprehensive questionnaires to 21 food retail companies and around 200 food producers for that purpose.
- Subsequently, the BKartA will investigate whether and to what extent the leading trading companies enjoy purchasing advantages over their competitors and how this affects the sales markets. Questionnaires relating to these questions are scheduled for January 2012.
Focus on Food Retailers
The food sector is currently enjoying the special attention of the BKartA. Only recently, the BKartA expressed its critical opinion concerning further possible mergers and acquisitions in this sector (see SBR Newsflash of August 28, 2011). Prior to this, substantial fines were imposed in various cases by the BKartA. Inquiries concerning suspected vertical restraints in the food sector are being conducted parallel to the sector inquiry.
Sector Inquiries
The BKartA may conduct inquiries in a specific sector in accordance with sec. 32 e GWB (Act against Restraints of Competition), if special circumstances give reason to assume that domestic competition may be restricted or distorted. Normally, affected companies are requested to provide comprehensive information during a sector inquiry. A concrete suspicion against individual companies is not necessary, but companies may be subject to antitrust proceedings following the sector inquiry. An overview of the sector inquiries conducted so far (outdoor advertising, gas transport, milk, electric generation and fuel sector) is provided on the BKartA’s website.
The Commission also publishes an overview of the sector inquiries conducted at the European level (3G, energy, local loop, leased lines, financial services, roaming services, pharmaceuticals) on its website.
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