Clifford Chance

On 9 July 2025 the German Federal Cartel Office ("FCO") has released its Annual Report for 2024/25, emphasising once again the importance of competition in driving economic growth and innovation. Going forward, the FCO remains committed to vigilant oversight and proactive measures to uphold competitive markets.

Digital markets. The FCO stresses that Germany's vibrant start-up culture in AI and the digital economy relies on platforms and computing power provided by the largest digital companies. In this respect, it highlights the importance and significance of the two legal tools on national and European level, (i) Section 19a of the Act against Restraints of Competition ("ARC") and (ii) the Digital Markets Act ("DMA") and points out its significant decisions related to major tech companies in the last year. Notable actions include assessments of Apple's App Tracking Transparency Framework and Amazon's price control mechanisms, and improvements in competition through proceedings involving Google Automotive Services and Google Maps Platform. Additionally, to strengthen its relatively new introduced competition tool in Section 19a ARC, Microsoft, Amazon, and Apple (next to the previously classified Alphabet (Google) and Meta (Facebook)) have been classified as companies of paramount cross-market importance. Consequently, this enables the provision to be applied to the designated company.

Merger control. In 2024, the FCO reviewed around 870 merger filings of which nine led to in-depth phase II examinations. Out of these nine phase II filings, four projects were withdrawn, including a merger in the field of crash test dummies. In the first half of 2025, the FCO prohibited acquisitions by Tönnies International Management GmbH and the merger of two hospitals, namely Universitätsklinikum Heidelberg and Universitätsklinikum Mannheim. However, as this merger now falls within the scope of the Hospital Supply Improvement Act (KHVVG), it can be approved despite the FCO's ongoing concerns. Three remaining three phase II projects were cleared as competitively unobjectionable.

Fines. In 2024, the amount of fines imposed increased once again with the FCO imposing fines totalling around EUR 26 million on six companies and one individual, with sectors including protective clothing, telecommunications, network technology, construction services, and road repairs. The number of dawn raids remained consistent with the previous year, at 11 in total during the 2024 and further three in the first half of 2025. A significant number of new proceedings were initiated as a result of indications provided to the external reporting office, which proved valuable in conjunction with leniency applications.

Sector inquiry. In February 2025, the FCO concluded a sector inquiry into the mineral oil industry, focusing on refineries and wholesale. The investigation revealed significant competition challenges and high market transparency. The FCO is now examining whether competition is persistently disrupted, potentially utilising its new competition tool for the first time. This tool, introduced by the 11th amendment to the ARC, provides the FCO with behavioural and structural remedy options. However, it is crucial to note that the FCO must first determine the malfunctioning of competition in the mineral oil market as a prerequisite for the application of remedies. Remedies can be addressed at all market participants, irrespective of their own contribution. As there is an absence of significant empirical values to date, it remains to be seen how the FCO utilises its new tools.

Miscellaneous. The FCO is conducting seven pilot proceedings to investigate the lawful use of price adjustment clauses by district heating suppliers. Initial findings suggest a need for deeper engagement with the district heating sector and potential legal clarifications for long-term oversight. Additionally, the FCO is examining energy price caps, with final assessments awaiting the companies' end-of-year settlements.

Andreas Mundt emphasised the importance of competition in fostering innovation and economic growth, ensuring fair prices and quality for consumers, and maintaining a healthy and stable market economy.