No objections to launch of online agricultural trading platform

The Bundeskartellamt has no objections to the planned launch of “Unamera”, an online trading platform for agricultural products. Unamera GmbH is a start-up company based in Zwickau which is backed by the grain trading companies BayWa AG, Getreide AG and ATR Landhandel as financing partners. Unamera is to serve as a platform for trading in particular in grain and oil seeds between agricultural trading companies on the one side of the platform and farmers and processors on the other side.

Andreas Mundt, President of the Bundeskartellamt: “Many companies approach the Bundeskartellamt as a contact partner, in particular for its assessment of cooperations in the digital economy in order to clarify any competition law issues. It is obvious that online platforms can make trade much more efficient. However, they must not restrict competition. In assessing online trading platforms we focus on a number of key issues. Such networks should not result in price-fixing agreements, they should be non-discriminatory, and they should not create an excess of transparency. Particular focus is thus always placed on the type and extent of information exchange, the creation of “Chinese Walls” between the platform users, the publication of market statistics and the disclosure of the identity of the trading partners.”

In assessing the flow of information between the platform and potential later partners in the current case under competition law, the Bundeskartellamt reverted to its practice in the “XOM Metals” steel trading platform case (see press release of 28 February 2018). In order to prevent an anti-competitive flow of information, it must be ensured that the trading platform continues to operate separately from partners in personnel, organisational, technical and information terms. Moreover, partners active in the same market may not exercise their general right to information and inspection to which they are entitled under the Limited Liability Companies Act (GmbHG) if such a restriction is necessary under competition law.

As regards the planned publication of market statistics, in the authority’s opinion the disclosure of prices is conditional on the aggregation of the data to obtain an average price, based on the prices submitted by at least five independent companies.

The platform will be used by both agricultural producers and agricultural trading companies. The offer of standardised products such as grain and oil seeds will increase transparency, which can make price-fixing agreements easier. Market participants will have to register on the platform as suppliers and customers with a client login. The trading prices will at first be shown anonymously. The contracting partner is disclosed only in the final stage before a contract is concluded.

Against this background and within its scope of discretion, the Bundeskartellamt has decided not to raise any antitrust law objections to the launch of the Unamera trading platform.