Question: What prerequisites must be met to initiate a cartel procedure against a company?
June 22, 2022 | 70,00 EUR | answered by Daniel Netz
Dear law firm,
I am contacting you with a question regarding antitrust law. I am the managing director of a medium-sized company and have heard that a competitor may be in violation of antitrust law. Now I am wondering what requirements need to be met in order to initiate an antitrust investigation against this company.
The situation is as follows: Our company operates in the same market segment as the competitor, and there are indications that the company may be engaging in anticompetitive practices. This could lead to distortions of competition and harm to us and other market participants.
The current state is that we do not have concrete evidence of antitrust violations, but there are some indications. Nevertheless, we are concerned about the fairness of competition and would like to know what steps we can take to initiate an antitrust investigation if the suspicion is confirmed.
My concerns mainly lie in the possibility that we could be disadvantaged if the competitor is indeed in violation of antitrust law. Therefore, it would be important for us to know what legal options we have to take action against this company.
Could you please explain to me what specific requirements need to be met in order to initiate an antitrust investigation against a company? What steps should we take in such a case and what role could your law firm play in this process? Thank you in advance for your assistance.
Sincerely,
Christian Peters
Dear Mr. Peters,
Thank you for your inquiry regarding antitrust law. As the managing director of a medium-sized company, it is understandable that you are concerned about potential violations of antitrust law and how to address them. In your case, it is important to know the requirements for initiating an antitrust proceeding against your competitor.
In general, antitrust proceedings can be initiated by various entities, such as the European Commission, the Federal Cartel Office, or even by a competitor themselves. To initiate an antitrust proceeding, certain conditions must be met. The most important ones include:
1. Proof of agreements: To initiate an antitrust proceeding, concrete evidence of anticompetitive agreements must be present. This could be emails, phone calls, or other documents indicating agreements between companies.
2. Dominant market position: If a company has a dominant market position and abuses it by harming competitors, this could also be grounds for an antitrust proceeding.
3. Harm to competition: An antitrust proceeding can also be initiated if anticompetitive behavior causes harm to competition, such as through price-fixing or market manipulation.
In your case, where you only have indications of potential antitrust violations so far, it would be advisable to gather additional evidence to support your suspicions. For example, you could review internal documents, interview witnesses, or consult external advisors to obtain a well-founded assessment.
As a law firm, we could support you in such a case by providing legal advice, assisting with evidence collection, and potentially initiating an antitrust proceeding against the company. We would plan and implement the necessary steps together with you to protect your interests and ensure fair competition.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Daniel Netz
Attorney specializing in business law
