Tönnies notified the acquisition of a shareholding in Ritzenhoff AG to the Austrian Federal Competition Authority (Z-6554) retroactively on 16 April 2024. As the acquisition had already been completed on 6 September 2023, the Cartel Court imposed a fine of EUR 1.15 million for the shareholding acquisition in Ritzenhoff AG having been implemented prior to clearance during the period from 6 September 2023 to 14 May 2024.
The merger concerned the manufacture, decoration and trade of glass and ceramic products. The acquisition was cleared by the AFCA with effect from 15 May 2024, as the merger review did not raise any competition concerns.
The company approached the AFCA about the infringement of its own accord, cooperated and acknowledged the infringement in order to conclude the proceedings by mutual agreement.
Illegal implementation of mergers
An illegal implementation occurs where a notifiable merger is implemented without the required clearance by the AFCA. The standstill obligation serves to protect competition from potential and actual restrictive effects.
Fines under the Cartel Act
The Federal Cartel Act (KartG) prohibits conduct that prevents, restricts or distorts competition. A breach of the standstill obligation deprives the competition authorities of the possibility of preventing restrictive market effects. Upon application by the AFCA, the Cartel Court may impose fines of up to 10% of the undertaking’s total turnover achieved in the preceding business year. Fines are determined on the basis of the gravity and duration of the infringement, the degree of fault, and the economic capacity and cooperation of the undertaking concerned.
Cartel Court case number: 26 Kt 1/26f