In its annual review 2024 published on 19 December 2024, the German Federal Cartel Office (FCO) showcases highlights of its enforcement action in 2024. Beyond providing a status update on the existing competition policy, the report indicates trends and key focus areas for the FCO’s enforcement that could shape the competition landscape in Germany for 2025.  

The FCO summarizes the cornerstones of its enforcement in the year 2024 as follows:

• Sanctions amounting to approximately 19.4 million euros imposed for anti-competitive agreements
• Several proceedings against Big Tech companies
• Approximately 900 merger proceedings 
• Sector inquiry electric vehicle charging stations completed; inquiry into the mineral oil sector almost complete
• Around 115 applications for review in public procurement cases examined
• Competition register searched approximately 1,100 times a day with around 7,700 new entries

In more detail:

1. Cartels Enforcement

Several sectors were in the particular focus of cartel investigations, including protective equipment and clothing, broadband devices, and construction. In total, the FCO has imposed fines totalling approximately 19.4 million euros in the last year. The FCO highlights the uptick in total fines compared to previous years noting that the temporary dip following the pandemic seems to have recovered. 

We note that the decrease in the number of cases cannot be attributed to the pandemic alone. Companies consider leniency applications carefully in the light of the exposure to private damage claims. The FCO is ramping up its investigative tools with AI may strengthen the detection of infringements beyond leniency whistleblowing. 

Notably, the FCO is “to further increase effectiveness in identifying collusive behaviour, planning to make greater use of AI in the future. No cartel can consider itself safe”, notes Andreas Mundt, the president of the FCO, messaging a clear warning to the markets.

2. Big Tech 

In relation to digital economy, the FCO continued to assert its authority based on its enhanced powers granted under Section 19a of the German Act Against Restraints of Competition (GWB), which significantly increases the possibility for streamlines and more efficient proceedings and enforcement action. Based on this law, the FCO can intervene into an alleged infringement of the widen catalogue of abusive conduct after having determined that a company has “paramount significance for competition across markets”, effectively being a super dominant player. 
By the FCO’s issuance of such determination order, the company becomes an addressee of the widened catalogue of obligations and the FCO can intervene into an alleged breach of these obligations in a simplified way. With this methodology and structure, Section 19a GWB is the counterpart to the EU's Digital Markets Act (DMA) – with Section 19a ARC having lead the way as been introduced before the DMA came into force. Like with the EU Commission’s nominations under the DMA, the FCO has issued determination orders against numerous big techs in the meantime.

As far as the co-existence of the two regimes is concerned, there can be a tension and the controversy has continued. For example, the FCO is keeping a close eye on the use of AI, including artificially generated pricing algorithms or the self-reinforcing effects that these technologies may facilitate. Both can also be the subject of enforcement also under the DMA (for which the FCO has investigation powers, but no enforcement rights). Likewise, access to Big Data and cloud infrastructure can pose a potential threat to competition and may be a tool of leveraging market power. 

In this context, Andreas Mundt indicates to be “focusing on the risk of new dependencies and the possible exacerbation of existing competition problems”. 

3. Mergers 

Merger control remains a significant competition tool for the FCO, which – unlike cartel enforcement – mainly works preventively. Only around 10 of a total of 900 proceedings the FCO conducted in 2024 were in-depth investigations in phase 2. Despite the lack of any changes in the law, there have been new developments in the application of the existing rules, for example, when the FCO confirmed that the transfer of employees may constitute a notifiable concentration under German merger control, even in the absence of a traditional asset transfer.

Companies have to be aware that even where a transaction is not caught under German merger control, it may trigger a filing requirement under Germany's foreign direct investment regulation (FDI) enforced by the German Ministry of Economic Affairs and Climate Action or under the EU Foreign Subsidies Regulation (FSR) enforced by the EU Commission.

4. Abuse Control and Sector Inquiries in the Energy Sector

Abuse control in the energy sector has continued to be one of the FCO’s priorities. By reviewing the adequacy of prices and supplier behaviour, the FCO sought to protect consumers from unjustified pricing practices and excessive costs to ensure transparency in an essential industry, aligning with its broader consumer protection objectives. This winter, according to their press release, the FCO wants to keep an eye on the prices on the electricity stock exchange. In doing so, it will pay particular attention to the price effects of the so called “Dunkelflaute”, a period of low renewable energy generation. 

Unjustified pricing practices were also a focus of the sector inquiry into charging stations for electric vehicles, which may result from the anti-competitive structures identified in the process. Andreas Mundt did, however, express his opposition to regulatory intervention in providers’ pricing, as this “would be counterproductive from today’s perspective”. It remains to be seen what measures the FCO considers as expedient in this regard.

5. Public Procurement and Competition Register 

A total of 115 applications related to public procurement matters were processed to enforce competition law. An important tool in this context is the "Wettbewerbsregister," a digital competition register that has been in operation for over two years. This register allows users to search for companies to verify their compliance with public procurement regulations. With approximately 1,100 searches conducted daily and 19,000 entries to date, the register has become an essential resource for ensuring compliance in public procurement.

6. Outlook

The FCO’s main focus continues to be on the energy sector and the digital economy. As we look ahead to 2025, especially in light of the economic challenges, the FCO’s enforcement will not become any softer, rather the opposite. Where the market is bumpy, participants may act unfairly and the FCO considers it to be its responsibility to prevent this and intervene where necessary, especially where the economic circumstances may enhance the suffering of some. As noted by president Mundt, the FCO's role in ensuring fair competition and protecting consumer welfare continues to be critically important. Therefore, it is essential for businesses to stay informed and comply with the competition rules to stay clear off competition exposure and the FCO’s investigations.