The GWB and the corresponding EU standards are less concerned with individual actions than with generally coordinated behavior, the exploitation of market power, coordination across territories and conditions, and much more.
The ARC includes various regulations that relate to competition and the market power of companies. For example, it prohibits price fixing and other forms of competition restriction between companies. The formation of cartels, in which companies collude to restrict competition, is also prohibited.
The GWB also includes regulations for abuse control, which are intended to prevent companies from abusing their market power. These include, for example, the prohibition of companies in the retail sector from charging unreasonably high prices or arbitrarily discriminating against suppliers.
Some people think that the GWB only affects the big players, but if you take a closer look, delivery areas are often awarded on an exclusive basis or it is expected that certain prices will be charged to the end customer. In particular, small and medium-sized companies have to be careful not to violate the GWB. The agreement of markets is generally prohibited. The GWB prohibits restrictions of competition that are aimed at limiting or distorting competition. This also includes market sharing, in which companies agree to divide up certain markets among themselves, thereby restricting competition.
Market sharing can result in a distortion of competition because the companies are no longer competing against each other on the merits. Consumers may be harmed because they no longer benefit from full competition and may face higher prices.
Sanctions
The GWB is monitored and enforced by the Federal Cartel Office and, at the European level, by the European Commission, but competitors and those affected can also independently assert civil claims. Violations of the GWB can lead to fines or even to legal proceedings. It is therefore important that companies adhere to the rules of the GWB and ensure fair competition.
Violations of competition law can result in various sanctions. The type of sanction depends, among other things, on which law has been violated and how serious the violation is.
One possible sanction is a fine. This can be imposed by the Federal Cartel Office, the Federal Network Agency or the competition law supervisory authorities. The amount of the fine depends on the severity of the violation and, in serious cases, can be up to 10% of the company's revenue.
In serious cases, or if a fine is not enough to deter the company from further violations, legal proceedings may also be initiated. In such cases, in addition to fines, claims for damages or injunctions may be imposed.
It is important that companies comply with the rules of competition law in order to avoid sanctions and legal proceedings. They should therefore obtain comprehensive information about the applicable laws and, if necessary, seek professional advice.