German Federal Cartel Office Cracks Down On "Wedding Rebates"

In a press release issued on 3 July 2014, the German Federal Cartel Office ("FCO") announced that it had adopted a decision finding that the German supermarket corporation EDEKA Zentrale AG & Co. KG ("EDEKA") abused its market position on the food retailing procurement market by prompting its suppliers to grant it contractual benefits – so-called "wedding rebates" – following EDEKA's takeover of the supermarket chain Plus in 2009. However, no fine was imposed for this abuse.

According to the FCO's press release, EDEKA insisted on suppliers granting it the same preferential conditions and benefits that they had previously granted to Plus without, however, justifying why it should be granted such preferential treatment. EDEKA's claims were also made with retroactive effect and, reportedly, as many as 500 suppliers were subject to such pressure from EDEKA.