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KTM AG and Kiska GmbH fined for illegal merger

The Cartel Court, at the Austrian Federal Competition Authority’s request, has imposed a fine of € 60,000 on KTM AG and Kiska GmbH.

The first respondent had held a 26% stake in the second respondent during the period from 7 October 2015 to 29 November 2018 after acquiring a 1.1% stake in the second respondent’s nominal capital. This acquisition resulted in the threshold defined in § 7 para. 1 subpara. 3 KartG being exceeded, meaning the transaction was classed as a merger requiring notification to the Federal Competition Authority.

The respondents did not contest the decision. The decision is final.

Reasoning: Illegal mergers are mergers subject to notification obligations that are implemented without the BWB’s or the Cartel Court’s approval or in a manner that deviates from the approved transaction. The Cartel Court is required to impose fines for an illegal merger in accordance with § 29 para. 1 lit a KartG.