Latest news with #FederalCartelOffice
CNBC
02-06-2025
- Business
- CNBC
Amazon's pricing controls may be anticompetitive, German regulator warns
German antitrust regulators warned Amazon on Monday that the company's pricing mechanisms for third-party sellers could run afoul of competition laws. The Federal Cartel Office said in its preliminary assessment that Amazon's pricing controls limit the visibility of merchants' products and, "based on non-transparent marketplace rules," interfere with their freedom to set prices. Amazon uses algorithms and statistical models to calculate certain price caps for products, the Cartel Office said. Products that are flagged as having "prices that are too high" or "prices that are not competitive" can then be demoted in search results, excluded from advertising or removed from the buy box, they added. The buy box is the listing that pops up first when a visitor clicks on a particular product, and the one that gets purchased when a shopper taps "Add to Cart." "Competition in online retail in Germany is largely determined by Amazon's rules for the trading platform," Federal Cartel Office President Andreas Mundt said in a statement. "Since Amazon competes directly with other marketplace retailers on its platform, influencing competitors' pricing, even in the form of price caps, is fundamentally questionable from a competition perspective." Amazon's pricing practices not only threaten sellers' businesses, but could also harm other retailers by deterring them from offering lower prices, the Cartel Office said. An Amazon spokesperson said the company strongly disagrees with the Cartel Office's preliminary findings. They added that any changes to Amazon's pricing mechanisms would be "bad for customers and selling partners." "If Amazon is prevented from helping people find competitively priced offers, it will lead to a bad shopping experience for them, as we'd need to promote uncompetitive or even abusive pricing in our store," the spokesperson said in a statement. "This would mislead customers into thinking they're getting good value when, in reality, they're not." Amazon can provide feedback to the Cartel Office on its preliminary assessment before it reaches a final decision. Amazon in 2022 reached a deal with European Union antitrust regulators who were investigating its use of seller data and buy box practices. As part of the settlement, Amazon agreed to display a second buy box on products sold in Europe when there is a second competing offer that's different on price or delivery. The U.S. Federal Trade Commission is also probing Amazon's use of pricing algorithms on its sprawling third-party marketplace as part of a wide-ranging antitrust lawsuit filed in 2023. Amazon has said the FTC's complaint is "wrong on the facts and the law." The case is set to go to trial in October 2026.
Bloomberg
02-06-2025
- Business
- Bloomberg
Amazon Hit by German Warning Over Price Controls on Marketplace
Inc. was warned by Germany's antitrust watchdog that price controls for retailers on its marketplace are likely to violate national and European Union laws. The Federal Cartel Office said it told Amazon that — in its preliminary assessment — the company's policing of how much retailers charge runs contrary to regulations for the digital economy and fair competition.
Yahoo
04-04-2025
- Automotive
- Yahoo
New Franco-German Tank Project Takes Shape With Industry Team Confirmed
Four different European defense companies will come together in a joint venture to build a next-generation Franco-German main battle tank, under the Main Ground Combat System (MGCS) initiative. The tank, which will be part of a wider 'system of systems,' confirms something of a renaissance in Western European armor programs, with a notable emphasis on larger and heavier-hitting main armament. The establishment of the joint venture, which comprises KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and THALES SIX GTS France, was confirmed today by the German government's Federal Cartel Office (or Bundeskartellamt), the country's competition regulatory agency. The joint venture, the MGCS-Projekt Company, will be based in Germany and will be charged with the industrial development of the MGCS tank, to be procured by Germany and France. The tank is planned to ultimately replace Germany's Leopard 2s and France's Leclercs, sometime in the 2040s. Before the joint venture could be approved, the Federal Cartel Office had to ensure that it wouldn't have an adverse impact on competition between the firms. The agency concluded that, despite 'some overlap in the area of armored military vehicles,' the companies wouldn't be able to realize the aims of MGCS alone. It also confirmed that the firms would continue to compete against each other for different armored vehicle contracts. The Federal Cartel Office also provided some more outlines of the MGCS program's aims, namely, to develop a modular main battle tank 'which fulfills various capability requirements as a multi-platform system.' As such, the program will provide 'an identical chassis on which different modules can be placed as required.' The agency adds: 'This flexible approach makes it possible to create several specialized vehicles that operate in tandem.' Of the four different companies involved, KNDS is already a Franco-German concern, established through the previous merger of Krauss-Maffei Wegmann and the French armaments group Nexter. Rheinmetall is Germany's largest arms manufacturer, and the fifth biggest in Europe. Finally, Thales is a French aerospace and defense company specializing in electronics with a global footprint. Within this, THALES SIX GTS France handles communications and security technologies. This significant step forward for the MGCS program comes soon after Germany determined that it would start work on a new main battle tank, which is already being referred to as the Leopard 3. In February of this year, the German Armed Forces procurement office issued a contract for technical studies of 130mm ammunition, as well as a powerplant, protection systems, and other equipment. Intriguingly, all of these new technologies are intended to be compatible with the existing Leopard 2 main battle tank. Once integrated into that platform, the result will be a significantly different tank, likely to be designated Leopard 3, although Leopard 2 AX or 'the bridge solution' have also been mentioned. The interim tank is supposed to be ready to enter German Army service in the 2030s. The German efforts in this direction underscore the value the country has assigned to modernizing its tank fleet. At the same time, it is quite possible that technologies developed for the Leopard 3 could also find their way into the MGCS main battle tank. In particular, the 130mm ammunition — a study that will be conducted by Rheinmetall — would be a logical fit for the GMCS program. Reflecting a growing shift toward increased-caliber tank armament, a 130mm main gun has been planned for the MGCS for some time. This will offer much more kinetic energy — and penetrating power — than existing 120mm weapons. However, the modular nature of the MGCS program means its scope is not limited to a main battle tank, although that will be its centerpiece. However, as a 'system of systems,' the Franco-German project is expected to field other crewed and uncrewed vehicles. Exactly what these will be is likely still to be determined. Nevertheless, the Federal Cartel Office's description of 'an identical chassis on which different modules can be placed as required' suggests a family of related fighting vehicles is planned. These specialized versions could perhaps be tasked with electronic warfare, air defense, or as platforms from which to launch drones or loitering munitions or fire directed-energy weapons. At least one video, released by German electronics firm Hensoldt, shows MGCS platforms working alongside multicopter drones, which serve as reconnaissance platforms as well as networking the different ground vehicles together — as seen in the image at the top of this story. At the same time, the MGCS family might include more traditional tank derivatives such as combat engineer vehicles, armored recovery vehicles, and bridge-layers. As well as the 130mm ammunition, the German technical studies also involve a new engine block (including steering, manual gearbox, cooling system, combustion air filtration, and exhaust system) and an enhanced version of the Multifunctional Self-Protection System, to be developed by Hensoldt and KNDS Deutschland. Again, some or all of these features could find their way into the MGCS program, or at the very least help determine its requirements. The Leopard 3 study is not the only Franco-German tank that's currently being pitched as a stopgap until the arrival of the more ambitious MGCS. Last summer, KNDS rolled out the latest Leopard 2 A-RC 3.0 version of the Leopard 2, which you can read about here. This new version of the Leopard 2 features a completely uncrewed turret that can be armed with an even larger 140mm main gun. The tank also features a built-in anti-tank guided missile launcher and a remote weapon station armed with a 30mm cannon optimized for engaging drones, a threat that has now fully emerged thanks to the war in Ukraine. Meanwhile, Rheinmetall is also now marketing a next-generation tank, the KF51 Panther. This is armed with a 130mm main gun but retains a more conventional crewed turret. That turret also features a built-in launcher for missiles or drones and the option to install a remote weapon station on top. You can read more about the Panther's design and capabilities here. In another binational European joint venture, Rheinmetall teamed up with Leonardo of Italy to develop and manufacture a version of the KF51 for the Italian Army. The two firms will also market the KF51 — alongside other armored fighting vehicles — to other potential customers. Overall, Germany is very much back in business when it comes to developing main battle tanks, products in which it was for a long time one of the leading manufacturers. The end of the Cold War, however, saw tank fleets slashed in general, and entirely done away with in some countries. Increasing Russian belligerence, starting with the annexation of Crimea in 2014, and culminating in its full-scale invasion of Ukraine in 2022, has been the prime driver behind a return to the primacy of tank warfare in Europe. Now, both Germany and France are committed to regenerating their tank forces — and their wider armored fighting vehicle capabilities — via the MGCS program. However, this is an ambitious, multi-layered effort and many of its details and requirements are still to be defined. With service entry pitched for the 2040s, it's no surprise that Germany, in particular, is looking at interim tank designs to meet threats in the years before then. Already, the MGCS effort has seen delays, but there could be more ahead. After all, a technology demonstrator for the MGCS program, the Enhanced Main Battle Tank, combining Leclerc and Leopard 2 components, was unveiled in 2018, but there has been little in the way of hardware since then. As it stands, there is still much to be determined about the MGCS program and the vehicles it will yield, but we do now have confirmation of the four companies that will be responsible for developing and manufacturing them. Contact the author: thomas@
Bloomberg
18-03-2025
- Business
- Bloomberg
Apple Loses Top Court Fight Against German Antitrust Crackdown
Apple Inc. lost its fight at Germany 's top civil court to overturn a regulator's decision to put it under tighter antitrust scrutiny alongside other US tech giants. The judges on Tuesday said the Federal Cartel Office was right to find that the iPhone maker's footprint across markets meets the threshold for more oversight. Apple is one of the largest, most profitable companies worldwide and has access to extraordinary financial and other resources, the judges added.
Yahoo
13-02-2025
- Business
- Yahoo
German regulator charges Apple with abuse of power over app tracking tool
BERLIN (Reuters) - The German antitrust authority has charged Apple with abusing its market power through its app tracking tool and giving itself preferential treatment in a move that could result in daily fines for the iPhone maker if it fails to change its business practices. The move follows a three-year investigation by the Federal Cartel Office into Apple's App Tracking Transparency feature, which allows users to block advertisers from tracking them across different applications. The U.S. tech giant has said the feature allows users to control their privacy but has drawn criticism from Meta Platforms, app developers and startups whose business models rely on advertising tracking. "The ATTF (app tracking tool) makes it far more difficult for competing app publishers to access the user data relevant for advertising," Andreas Mundt, cartel office president, said in a statement. Apple defended the feature in an emailed statement to Reuters, adding that it "holds itself to a higher standard than it requires of any third-party developer." "We ... will continue to constructively engage with the Federal Cartel Office to ensure users continue to have transparency and control over their data," it added. Apple will be required to address the concerns set out in the German charge sheet or risk further proceedings and daily fines if it fails to do so by the time of a final ruling which could come this year but is more likely to land next year. The case was triggered by complaints from associations representing publishers, broadcasters, advertisers, their agencies and ad tech firms. "Today's charges are groundbreaking. Apple's measures had created an artificial opacity in its ecosystem that led to less choice, higher costs for apps, and less protection against ad fraud, all while boosting Apple's revenues from services," said Thomas Höppner, partner at law firm Hausfeld, which represents the complainants. "For the first time it has been clarified that Apple may not rely on pretextual privacy arguments to massively restrict competition in its favor," he said. Companies found guilty of breaching Germany's antitrust rules risk fines as much as 10% of their annual turnover.
