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ARTICLE · 28 OCTOBER 2009

Newly Elected German Government Considers Increased Anti-Trust Powers

SJ Berwin LLP
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Germany's newly elected coalition government composed of the Christian Democratic Party (the "CDU") and the Free Democratic Party (the "FDP"), is currently discussing an amendment to the German Act against Restraints on Competition (the "ARC") which will empower the Federal Cartel Office (the "FCO") to apply structural remedies against companies accused of abusing their dominant position.

United KingdomAntitrust/Competition Law
SJ Berwin'S EU & Competition Team
SJ Berwin'S EU & Competition Team

Germany's newly elected coalition government composed of the Christian Democratic Party (the "CDU") and the Free Democratic Party (the "FDP"), is currently discussing an amendment to the German Act against Restraints on Competition (the "ARC") which will empower the Federal Cartel Office (the "FCO") to apply structural remedies against companies accused of abusing their dominant position. The coalition envisages that the FCO should only be allowed to use this power as a last resort, when other available actions are considered insufficient. According to press reports, the coalition intends to target dominant companies in the energy, telecommunications and media sectors.

The current version of the ARC is ambiguous regarding the power of the FCO to impose structural remedies in dominance cases. Although the FCO has no explicit right to impose structural remedies, they are not expressly forbidden either. However, it is argued that such remedies are not allowed in

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