Publishing House Druck- und Verlagshaus Frankfurt am Main GmbH fined for violating the prohibition of putting a concentration into effect

The Bundeskartellamt has imposed a fine of 4.13 million euros against the publishing house Druck- und Verlagshaus Frankfurt am Main GmbH (DuV) for violating the prohibition of putting a concentration into effect. In 2001, DuV had acquired the publishing company Frankfurter Stadtanzeiger GmbH (FSG). This acquisition should have first been notified to the Bundeskartellamt. The companies concerned would only have been allowed to realize the acquisition after prior examination and clearance by the Bundeskartellamt. DuV had deliberately failed to notify the Bundeskartellamt of the planned acquisition.

DuV publishes the “Frankfurter Rundschau” daily and several advertising newspapers in the Rhine-Main region. It is also active in the newspaper printing business and owns 50 per cent of a magazine publishing company in Frankfurt.

Whilst examining another merger project, the Bundeskartellamt discovered in January 2008 that DuV had already acquired the FSG on 1 January 2001 and had not notified this transaction to the agency for examination although it was aware of its obligation to do so.

By realizing this acquisition DuV had consciously defied the provisions of German competition law. A violation of the obligation to notify a concentration can be punished as an administrative offence. The level of fines imposed for violations of the ban on putting a concentration into effect was raised by the legislator in the 7th amendment of the Act against Restraints of Competition in 2005. The fine was calculated on the basis of the new guidelines on the setting of fines issued by the Bundeskartellamt in 2006. As it has to assess the turnover achieved from the infringement by the undertaking concerned, the agency based the fine on the turnover achieved on the Frankfurt advertising market. It also took into account DuV’s powerful position on this market (market share of approx. 2/3), the resulting probability of the merger being prohibited had it been notified, the gravity of the intent and the financial power of the company group.

The order imposing the fine is not yet final; DuV has appealed against the decision.