The head of the Federal Cartel Office (Bundeskartellamt), Andreas Mundt, is urgently calling on the German government to significantly bolster its tools for combating price-fixing and restricting competition. In an interview with “Politico’s” “Industrie und Handel” newsletter, Mundt highlighted the increasing limitations of current legislation and underscored a pressing need for revised regulatory frameworks.
A key demand centers on the Bundeskartellamt’s ability to scrutinize mergers and acquisitions, even when the value of the involved companies falls below the currently mandated revenue thresholds. Mundt argues that the emergence of economically significant combinations, particularly within rapidly evolving digital markets, are increasingly slipping through the cracks. He specifically referenced the practice of “killer acquisitions” where larger corporations absorb smaller companies only to integrate or effectively shut them down, a tactic that requires a more nuanced oversight. Current tools, he stated, are inadequate to address these situations effectively.
To counter this, Mundt proposed the implementation of “call-in” models. These would empower the competition authority to investigate individual cases deemed problematic, regardless of whether they surpass established revenue thresholds. He also emphasized the necessity of improved access to pricing and cost data, arguing it’s vital for ensuring fair market prices and preventing anti-competitive practices.
Beyond merger control, Mundt voiced concern regarding the planned reform of procurement law. He urged policymakers to adopt a bolder approach, advocating for the extension of the expedited procurement procedures currently applied to defense technology to encompass broader public infrastructure projects. Crucially, he insisted that the Cartel Office needs enhanced capabilities to monitor procurement processes for signs of collusion, suggesting the use of artificial intelligence to detect suspicious patterns in bidding behavior – a capability contingent on access to comprehensive tender data.
Finally, Mundt expressed skepticism regarding the proposed subsidized industrial electricity price for energy-intensive industries. He cautioned against measures that disproportionately benefit large corporations while potentially disadvantaging smaller businesses, warning that such policies risk introducing distorting competition. The concern, he stressed, is that seemingly targeted relief could inadvertently create unfair advantages, eroding the level playing field required for a healthy and competitive German economy. The Bundeskartellamt’s perspective represents a critical voice within the ongoing debate, demanding a more proactive and adaptive regulatory landscape.
