Developments In German Competition And Antitrust Law—Better Safe Than Sorry

In 2006, we reported on the 2005 reform of the German competition and antitrust law to bring it closer in line with the corresponding EU legislation. We believe an update at this time is appropriate.

The reform of the German Act Against Restraints of Competition (GWB) that came into effect on July 1, 2005, was intended to reduce the administrative bureaucracy often associated with antitrust cases in Germany. As a replacement for prior approvals, it imposes a system of self-assessment. In addition, company mergers that impact the German market may require merger control clearance by the Federal Cartel Office (FCO) or the EU Commission before the closing of the transaction. Noncompliance can be costly.