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"Competition-law easily explained" - Final version of the guideline

During the course of their investigations over the last few years, the BWB has become aware of anticompetitive restricted agreements between producers and the retail market, especially in the area of retail prices (vertical price maintenance).

During the course of their investigations over the last few years, the BWB has become aware of anticompetitive restricted agreements between producers and the retail market, especially in the area of retail prices (vertical price maintenance).

On the occasion of the repeatedly identified cartel infringements in the last years, which led to decision imposing fines of the Cartel Court in various branches, this guideline should make it easier to recognize infringing behavior, especially for small and medium-sized firms. The position is for information and prevention and is not binding. 

After having received numerous statements, among other things by interest groups, consumer protection organizations, businesses and other interested parties, as well as their legal incorporation, the Federal Competition Authority has completed the work on the guideline "Point of view of vertical Price agreements."

What this guideline is about:

The guideline addresses vertical price agreements, especially vertical price maintenance. It clarifies which cases the BWB classifies as questionable.

Furthermore, the guideline addresses the following questions or topics which concern every branch:

  • Why are vertical price agreements problematic according to European and Austrian law?
  • Which law is applicable?
  • When do agreements or a certain behaviors occur?
  • Vertical price maintenance is an aimed restriction of competition.
  • When does a non-binding price recommendation occur?
  • Even unilateral measures can be unlawful competition.
  • As a general rule impermissible / permissible behaviors
  • How can a company proceed, if violations occurred?
  • Special topics and examples

The catalogue of behaviours

The core elements of the guideline are formed by the catalogue of behavior for suppliers (non-exhaustive) and the retail market (of all trade levels). This should be an orientation guide for small and medium-sized businesses.

Specifically illegal (for example agreements/ assessment of retail prices) and permissible behaviors (for example non-binding price recommendations) are presented.

Leniency applications and settlement

The possibilities of how a business a company can proceed, if violations have been committed, is also dealt with in the guideline. Businesses generally have the possibility to cooperate with the BWB within the leniency applications. The leniency application has proven itself several times.

Furthermore, there is also the possibility within a consensual agreement ("settlement") to cooperate with the authority. The consensual agreement can also be used in addition to the leniency application. This concerns all cases, where the fines of the affected company could be reduced.

In conclusion, selected examples give an illustrated presentation of the subject. These should offer companies an additional assistance and round off the information content of the guideline for companies as a service of the BWB.

An information campaign on the issue vertical price maintenance is planned for fall 2014 by the BWB in cooperation with the WKO. Further information will be released soon.

BWB - Guideline Point of view of vertical Price agreements (german text)