Background
Two mergers subject to notification obligations were notified to the AFCA in April 2023 but had already been implemented in July 2018 (Z-6236) and August 2020 (Z-6237) respectively. Another merger was notified to the AFCA in October 2023 but had already been implemented in July 2022 (Z-6400).
Kiesel is engaged in the trade (distribution, rental, services) and manufacturing of construction machinery.
The company approached the AFCA about its breaches of its own accord.
Illegal merger
Illegal mergers are mergers subject to notification obligations that are implemented without approval or in a manner that deviates from the approved transaction. The standstill obligation protects competition on the market 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.