Criticism of Record Cartel Fine for Rewe

"Investments are only made if companies can trust that sanctions are proportionate to the severity of the offense," said WKÖ Trade Chairman Rainer Trefelik on Friday according to a press release regarding the record cartel fine for Rewe.

Trade Association Finds Record Cartel Fine for Rewe Incomprehensible

The Supreme Court (OGH) recently, as the cartel court, massively increased the fine for Rewe International AG from 1.5 million euros to 70 million euros. The German Rewe Group includes Adeg, Billa, Billa Plus, Bipa, and Penny in Austria. The supermarket chain initially did not report the acquisition of retail space in a Wels shopping center to the Federal Competition Authority (BWB), thus violating the merger notification obligation.

The Trade Association pointed out that there was "no relevant case law on the question of under what conditions simple sublease/sublease scenarios constitute a merger." The merger was then "subsequently classified as unproblematic." "It is incomprehensible why domestic companies are being treated so harshly, while dubious Far East platforms are still allowed to send their fake products into the country unabashedly and unhindered - and mostly with impunity," said Trade Association Managing Director Rainer Will, referring to the Asian discount shopping portals Shein and Temu.

The OGH decision also causes "considerable incomprehension" at the Chamber of Commerce. Supreme court judgments are "of course to be recognized," but there are "massive concerns regarding the proportionality of the amount of the fine," said the WKÖ.

After Record Cartel Fine for Rewe: Reliable Legal Framework Essential for German Trade Commerce

The Chamber of Commerce pointed to the "crucial importance of a predictable and fair legal system" in view of the "current challenges" for Austria's competitiveness. "It is not understandable if the amount of a fine is primarily determined based on EU-wide comparative values and the economic performance of a company, without sufficiently considering the actual severity of the offense," criticized WKÖ Trade Chairman Trefelik. The fact that the legal framework allows for even higher fines should "not be an argument for an excessive sanction."

For the Chief Executive Officer of the German Chamber of Commerce in Austria, Thomas Gindele, the OGH has done a "disservice" to Austria's economic location with the judgment. The completely excessive fine by the OGH would deter companies from investing in Austria in the future, the DHK recently warned in a press release. For the German economy, "a reliable legal framework" in Austria is "essential." According to the DHK, around 6,000 German companies are economically active in Austria. Around 600,000 Austrian employees are "directly and indirectly employed through the engagement of the German economy in Austria and through Austria's foreign trade relationship with Germany."

(APA/Red)

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