Latest news with #Bundeskartellamt
Arabian Post
02-06-2025
- Business
- Arabian Post
Amazon Faces German Scrutiny Over Marketplace Pricing Practices
Arabian Post Staff -Dubai Germany's antitrust authority, the Bundeskartellamt, has issued a formal warning to Amazon regarding its pricing policies on the Amazon Marketplace. The watchdog contends that Amazon's mechanisms for controlling third-party sellers' prices may infringe upon both national and European Union competition laws. The Bundeskartellamt's concerns centre on Amazon's use of algorithms and policies that potentially penalise third-party sellers for setting prices deemed too high. Such penalties could include demotion in search rankings or outright removal of products from the platform. The authority argues that these practices may constitute an abuse of market dominance, restricting fair competition and consumer choice. ADVERTISEMENT This development follows the Bundeskartellamt's designation of Amazon as an entity of 'paramount significance for competition across markets' under Section 19a of the German Competition Act. This classification subjects Amazon to heightened regulatory scrutiny and obligations to ensure competitive fairness. In response to the ongoing investigation, the Bundeskartellamt conducted a survey in September 2024 involving 2,000 third-party retailers. The survey aimed to assess the impact of Amazon's pricing policies on sellers' behaviour and market dynamics. Preliminary findings suggest that Amazon's practices may deter sellers from offering competitive prices, thereby limiting market diversity. Amazon has previously defended its pricing policies, asserting that they are designed to prevent price gouging and protect consumers. However, the Bundeskartellamt maintains that such justifications do not exempt the company from adhering to competition laws. The European Commission is also monitoring Amazon's practices, particularly in light of the Digital Markets Act , which seeks to regulate large online platforms and prevent anti-competitive behaviour. Under the DMA, companies designated as 'gatekeepers' are prohibited from favouring their own services or imposing unfair conditions on business users. The outcome of the Bundeskartellamt's investigation could have significant implications for Amazon's operations in Germany and potentially across the European Union. If found in violation of competition laws, Amazon may face substantial fines and be required to alter its business practices to promote fair competition.
Yahoo
16-04-2025
- Business
- Yahoo
German bakery major Harry-Brot gets OK to buy Rewe plant
German bakery group Harry-Brot has secured approval from competition officials to buy a factory from major grocer Rewe. Harry-Brot has acquired the Glockenbrot Bergkirchen bakery from Rewe for an undisclosed sum. The approximately 320 staff at the site will move to Harry-Brot, a spokesperson told Just Food. In its statement, Germany's Federal Cartel Office, the Bundeskartellamt, said the deal 'will only result in minor competitive changes for the other market participants' in the country's bakery sector. Glockenbrot, which has been a part of Rewe since 1986, has produced private-label bread and baked goods for the retailer at two sites – one in Bergkirchen and the other in Frankfurt. Before striking a deal to sell the Bergkirchen to Harry-Brot, Rewe had decided to close the factory in Frankfurt. Harry-Brot produces bread and baked goods from ten plants in Germany. It generated sales of around €1.3bn ($1.48bn) in its 2024 fiscal year. Andreas Mundt, president of the Bundeskartellamt, explained the 'decisive factor' in its assessment was that Glockenbrot had so far produced 'exclusively' for Rewe within the group. "Harry-Brot is by far the leading manufacturer of bread and baked goods in Germany. The planned acquisition of the Rewe subsidiary Glockenbrot will further strengthen this position. Nevertheless, we do not have any fundamental competition concerns that could justify a prohibition of the transaction," Mundt said. "The acquisition will only change the competitive situation for other market participants to a manageable extent. Even after the merger, there will still be powerful competitors in the primarily affected market for self-service bread and baked goods." Meanwhile, Harry-Brot is planning to build another bakery in Erlensee, east of Frankfurt. If the project goes ahead, the company is hoping to start production in 2028. The Bundeskartellamt said the acquisition of the Bergkirchen site and the opening of the Erlensee facility would 'at least in southern Germany, likely lead to an expansion of the product range and increased competition'. "German bakery major Harry-Brot gets OK to buy Rewe plant" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
13-02-2025
- Business
- Yahoo
Apple Faces German Scrutiny for Alleged Self-Preferencing in App Tracking Rules
Apple (NASDAQ:AAPL) has been notified by Germany's antitrust authority, the Bundeskartellamt, regarding potential violations tied to its App Tracking Transparency Framework (ATTF). The regulator raised concerns that Apple's rules impose stricter requirements on third-party apps than on its own services, which may constitute self-preferencing under German competition law. Since ATTF's launch in April 2021, app providers in Apple's iOS App Store have been required to obtain additional user consent for data tracking. However, the Bundeskartellamt argues that Apple does not apply the same strict rules to itself, creating a possible competitive imbalance. Apple now has the chance to respond to these allegations. Andreas Mundt, President of the Bundeskartellamt, stated that Apple's framework makes it harder for rival app developers to access user data for advertising. The case falls under Germany's extended abuse control laws, which Apple has appealed to the Federal Court of Justice. The appeal remains pending. This article first appeared on GuruFocus. Sign in to access your portfolio
