The AFCA cleared the implemented acquisition of 49% of the shares in Ritzenhoff AG, Germany, by Tönnies Unternehmensbeteiligungen GmbH with effect from 15 May 2024 since its merger examination did not raise any concerns. The illegal merger concerns the industry sector of the manufacture, decoration, and trade of glass and ceramic products.
The company approached the AFCA about its breach of its own accord, cooperated and acknowledged the infringement in order to conclude the proceedings by mutual agreement.
Illegal mergers
Illegal mergers are mergers subject to notification obligations that are implemented without the necessary approval by the AFCA. The standstill obligation serves to protect competition from potential and actual restrictive effects.
Fines for cartels
The Federal Cartel Act (KartG) prohibits any behaviour that prevents or distorts competition. A breach of the standstill obligation leaves competition authorities without the possibility of preventing restrictive effects. At the AFCA’s request, the Cartel Court may impose fines of up to 10% of an entity’s total turnover generated in the preceding business year if the entity concerned is found to have breached the rules banning cartels. Fines are determined on the basis of the gravity and duration of the breach, the degree of fault, and the economic strength and cooperation of the company concerned.