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ARTICLE · 20 MARCH 2020

Family Business And Group-Privilege

It was deemed to be enough, if the parent company has a significant influence on the business policy of the subsidiary.

AustriaAntitrust/Competition Law

As generally known, under European Cartel law (Art 101 TFEU) as well as under Austrian Cartel law (Sec 1 Cartel Act) agreements between undertakings, decision of association of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competitions (cartels) are prohibited. This cartel prohibition applies to activities between independent undertakings. This does, however, not apply between a controlling and a controlled undertaking, as such subsidiary would not enjoy economic independence. This concept is referred to as "single economic entity" – concept or anti-trust group privilege, which such "family" of undertakings may enjoy. The privilege is that between undertakings inside such single economic entity even agreements restricting competition are not prohibited or illegal.

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