Cartels & Leniency In Germany

Extract

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Cartels & Leniency In Germany

This article first appeared in the second edition of The

International Comparative Legal Guide to: Cartels &

Leniency; published by Global Legal Group Ltd, London www.iclg.co.uk

1 The Legislative Framework of the Cartel Prohibition

1.1 What is the legal basis and general nature of the cartel

prohibition, e.g. is it civil and/or criminal?

The legal basis for cartel enforcement in Germany is the Act

against Restrictions of Competition (ARC). Section 1 ARC

corresponds to article 81(1) of the EC Treaty and broadly prohibits

agreements or concerted practices between undertakings that have as

their object or effect the prevention, restriction or distortion of

competition. The substantive law - which applies both to companies

and individuals - can be enforced by the Bundeskartellamt (Federal

Cartel Office, FCO) on the basis of two different proceedings.

Minor infringements which only require a cease and desist order are

dealt with in an administrative process which is governed by the

ARC. However, where the authority intends to impose fines, the

proceedings are governed by the Code on Administrative Offences

(Ordnungswidrigkeitengesetz) and the Code on Criminal Procedure

(Strafprozessordnung).

1.2 What are the specific substantive provisions for the

cartel prohibition?

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