Bundeskartellamt safeguards competition in maintenance of “Boxer” wheeled armoured transport vehicles

The Bundeskartellamt’s abuse proceeding resulted in Rheinmetall Landsysteme GmbH providing diagnostic software developed by Rheinmetall for “Boxer” wheeled armoured transport vehicles to FFG Flensburg Fahrzeugbau GmbH. After the two companies had reached an agreement, the proceeding could be terminated.

Andreas Mundt, President of the Bundeskartellamt: “For the maintenance of “Boxer” wheeled armoured transport vehicles FFG Flensburg and third parties rely on Rheinmetall’s inspection systems. As a result of our proceeding, Rheinmetall contractually agreed to provide the necessary inspection system
to FFG Flensburg, which it has already delivered. For the Bundeswehr as a customer it is very important to have as much choice as possible when it comes to the maintenance of its vehicles in order to award contracts in the most economically favourable manner. We are therefore strengthening the
principle of competition in this sensitive sector.”

Companies are generally free to decide to whom they want to provide their products and services and at what price. However, if a company dominates the market, its conduct is subject to stricter abuse control. In the authority’s initial assessment, Rheinmetall is dominant in the national market for special
tools needed for the maintenance and repair of “Boxer” wheeled armoured transport vehicles (this includes in particular so-called “DAS” inspection systems). Therefore, third parties rely on Rheinmetall’s maintenance software to compete in the downstream market for the maintenance of “Boxer” vehicles. In a preliminary statement, the Bundeskartellamt considered Rheinmetall’s refusal to present a binding offer for the provision of the “DAS” inspection system in return for reasonable payment to be abusive conduct without objective justification.

The agreement between Rheinmetall and FFG Flensburg brought about by the authority puts an end to Rheinmetall’s refusal to provide the necessary equipment and serves to dispel the authority’s competition law concerns. At the same time, another provider is available to the Bundeswehr for the
maintenance of “Boxer” wheeled armoured transport vehicles. As a consequence, the Bundeskartellamt decided to terminate the proceeding within the scope of its discretion. Nevertheless, the authority will continue to keep a close eye on the market for the repair of armoured vehicles.