Bundeskartellamt steps up cartel prosecution

The Bundeskartellamt has set up a third division for cartel prosecution. In addition to the 11th and 12th Decision Divisions, the 10th Decision Division will also be dedicated solely to the prosecution of cartel cases in future under the direction of Dr Carsten Becker.

The President of the Bundeskartellamt, Andreas Mundt, stated: “Illegal cartel agreements cause great harm to the economy and consumers. In the past years we have increasingly stepped up our efforts in cartel prosecution, the success of which can be seen in the increasing number of cartel cases. Now we are continuing along this path with the launch of another special division.”

The Bundeskartellamt sees the prosecution of illegal agreements, especially on prices, quotas, customer and territorial allocation (so-called hardcore cartels) as a high priority area in its work. During the last ten years a number of measures have increased the effectiveness of cartel prosecution for the benefit of the overall economy and consumers:

- Introduction (2000) and thorough revision (2006) of the Bundeskartellamt’s Leniency Programme
- Launch of the Special Unit for Combating Cartels (SKK) (2002)
- Set-up of specialized decision divisions (2005 and 2008)
- Creation of a unit for administrative offence proceedings in the Litigation Division (2010)

Andreas Mundt: “Cartels are well-concealed and difficult to detect. Cartel proceedings are complex and time-consuming and the requirements of proof demanded by the courts are justifiably also very high. We respond to all these challenges with highly qualified and motivated staff and efficient structures.”

The structure of the decision divisions at the Bundeskartellamt is generally sector-specific. The launch of a further division dedicated to cartel prosecution is the Bundeskartellamt’s reaction to the increased number of uncovered cartels in recent years. Whereas only seven cartel proceedings were initiated from 1994 to 1997, alone in 2010 the Bundeskartellamt conducted 13 searches at a total of 109 companies. This trend continues. The launch of investigations into railway track manufacturers was one of seven search operations initiated so far in 2011.

The so-called Leniency Programme has also contributed to the increasing number of uncovered cartel cases. This highly successful programme was introduced as early as 2000 and extensively revised in 2006. Cartel members which approach the Bundeskartellamt and help to uncover illegal agreements may, under certain conditions, be granted immunity from or a reduction of fines. In 2010 alone the Bundeskartellamt received 54 applications for leniency in 25 different proceedings.