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European Commission Considers Taking Over Cartel Investigations to Prevent Exploitation of German Law Loophole

Posted in Cartel Enforcement, EC Developments, German Developments

by Martina Maier and Philipp Werner

Under German law, companies may escape cartel fines by undertaking an internal restructuring.  The German competition authority has indicated a willingness to reallocate such cases to the European Commission, which can impose a fine on the corporate group regardless of any internal restructuring.  Commission officials speaking at a conference have suggested recently that the Commission would be willing to take over cartel cases from EU Member States, even at a late stage in the proceedings, in order to fine undertakings for their anti-competitive behaviour.

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