Bundeskartellamt discontinues investigations against Edeka - Suspicion that Edeka has violated the prohibition to demand unjustified benefits from suppliers could not be confirmed

The Bundeskartellamt has discontinued its investigations against Edeka regarding the suspected violation of the prohibition to demand unjustified benefits from suppliers. The respective investigations against Kaufland are still ongoing.

Within the context of Edeka’s acquisition of Real stores (see press release of 17 March 2021) the company had demanded special benefits from a number of different suppliers. The Bundeskartellamt examined whether these demands resulted in the violation of the prohibition to demand unjustified benefits from suppliers and could thus be considered to constitute a prohibited abuse of market power. This can be the case where a powerful company uses its market power to demand benefits from its suppliers without any objective justification.

Andreas Mundt, President of the Bundeskartellamt: “It is important that these kinds of special demands are not made without relevant services in return. We are assured that Edeka will take this into consideration. In this case the services would involve special, optional marketing actions in large stores which can be supported financially by the suppliers. It is important that specific services and the associated costs of these services can be individually agreed.”

After the Bundeskartellamt had initiated its investigations, Edeka initially stopped its negotiations with suppliers. Based on the results of its investigations the Bundeskartellamt has no objections to Edeka resuming the negotiations on special marketing campaigns in large stores, if, as announced, Edeka complies with certain aspects regarding specific services to be provided in return and optional bookability.

The Bundeskartellamt’s assessment is based on the following key aspects: The individual services Edeka provided to suppliers in return for the requested benefits are product-related and specifically defined. For suppliers it is only optional to book additional marketing packages and all advertising campaigns that are specifically agreed will actually be carried out. The services to be provided in return can be reliably calculated, i.e. apart from the specifically agreed advertising campaigns, Edeka will not demand any further benefits from the suppliers for the additionally acquired Real stores. In relation to the applicable conditions agreed at the annual talks there will be no double compensation for services that have already been compensated for.

The Bundeskartellamt’s investigations regarding similar accusations made against Kaufland (Schwarz Group) are still ongoing. The authority has requested Kaufland to comment on a number of issues.