Can An Error In Law Protect Against Competition Fines?

Two recent Supreme Court decisions have triggered significant debate in the competition field, both in Austria and at a European level. The rulings were issued by the Supreme Court, acting as the Higher Cartel Court, on December 5 2011.

Displacing fault in merger notification

The first case¹ involved a fine procedure against a German company for its failure to duly notify a past merger.

After the Germany company, in its role as purchaser, had sent notification of the merger in 2010, the Federal Competition Authority discovered that in 2007, it had failed to notify its earlier acquisition of the first 50% in the target (two Hungarian companies), even though such notification was clearly required under Austrian law.