Federal Cartel Prosecutor submits application for examination to the Cartel Court
Pölzleitner also jointly controls the HolzRec joint venture with Brantner Entsorgung. In addition, market feedback indicated that market shares in certain regions were significantly above the threshold at which a dominant market position is presumed. The Federal Cartel Prosecutor therefore submitted an application for examination to the Cartel Court.
Analysis by the Federal Competition Authority
The Federal Competition Authority conducted an in-depth examination of the matter. In its view, the analysis did not reveal competition concerns that would have been sufficiently substantiated to support an application for examination before the Cartel Court. The Federal Competition Authority therefore did not submit such an application.
Products concerned
Waste wood is a highly sought-after raw material in the particleboard industry for material recycling. Modern sorting facilities examine each individual fibre to determine whether it is suitable for further processing. Lower-quality waste wood is used for energy recovery in facilities equipped with appropriate filtration technology. Due to its volume, waste wood is particularly expensive to transport. Shredding it at suitable facilities can significantly reduce transport costs and consequently expand the relevant catchment area.
Conditions agreed with the Federal Cartel Prosecutor
Following the initiation of Phase II proceedings before the Cartel Court by the Federal Cartel Prosecutor, the notifying parties indicated their willingness to accept conditions. Third parties pointed out that wood storage sites suitable for preliminary sorting and shredding are extremely scarce due to the numerous permits required. The conditions therefore ensure that third parties are granted access to such sites.
The negotiations between the notifying parties and the Federal Cartel Prosecutor were accompanied by an expert appointed by the Cartel Court. The proposed conditions were also subjected to a limited market test.
As the conditions addressed the Federal Cartel Prosecutor’s competition concerns, the application for examination was withdrawn. The clearance is now final and legally binding.
The agreed conditions include the following:
- Pölzleitner and Saubermacher undertake to grant third parties active in the relevant product markets in Vienna, Lower Austria, Burgenland and/or Styria non-discriminatory access to storage sites, based on a published access agreement and subject to specified capacities and conditions.
- The flow of information between Saubermacher, Pölzleitner and Pölzleitner’s joint ventures will be significantly restricted through measures such as the separation of IT systems, internal policies and a prohibition on dual employment.
- A ban on acquisitions applies in the relevant product and geographic markets.
- Reporting obligations facilitate the official parties’ monitoring of compliance with the conditions.
The Federal Cartel Prosecutor
The office of the Federal Cartel Prosecutor was established within the remit of the Federal Ministry of Justice by the 2002 amendment to the Cartel Act and is subject to ministerial instructions. Its task is to represent the public interest in competition law matters before the Cartel Court.
Alongside the independent Federal Competition Authority, the Federal Cartel Prosecutor is an official party and has party status in all proceedings before the Cartel Court. Mag. Heinz Ludwig Majer, MBA, has held the office of Federal Cartel Prosecutor since 1 September 2020. He is supported by two deputies and a legal officer.
Source document: Conditions relating to the Saubermacher/Pölzleitner merger