The number of companies listed in the Federal Cartel Office’s Competition Register has seen a substantial increase, according to a recent parliamentary inquiry by the Left party and reported by publications within the Funke-Mediengruppe. As of March 2025, the register includes 21,456 companies, a significant rise from 4,632 at the end of 2022.
The Competition Register serves as an electronic database documenting businesses found to have committed specific economic offenses. Inclusion in the register can have consequential ramifications for the affected companies, previously resulting in exclusion from public contracts exceeding a value of €30,000.
The register’s data reveals a particularly high incidence of violations concerning Section 266a of the German Criminal Code, primarily related to employers failing to properly remit social security contributions – a category seeing an increase from 2,271 to 9,847 listed companies. Other areas recorded include violations of the Posted Workers Act (AEntG), the Minimum Wage Act (MiLoG), the Temporary Work Act (AÜG) and the Law on Combating Illegal Work (SchwarzArbG).
The Federal Government is planning adjustments concerning the awarding of public contracts, with a draft law aimed at accelerating the process scheduled for discussion within the cabinet next week. A key element of this draft includes raising the value threshold for Competition Register exclusion from €30,000 to €50,000. Left party representative Meiser has voiced strong criticism of this proposal.
“The Federal Government appears determined to ensure companies engaging in unlawful practices can more easily access public contracts” Meiser stated. He argues the planned expansion of direct public contract awards will eliminate the requirement for awarding bodies to consult the Competition Register, effectively opening the door for companies operating outside legal boundaries.
Meiser contends that law-abiding companies, adhering to legal frameworks, will ultimately suffer as they face unfair cost competition. He calls for modifications to the draft law, urging the removal of existing exemptions and emphasizing that business models built on illegal practices should not profit from public funds. “Such egregious wage dumping should not be subsidized with taxpayer money” he added.
A spokesperson for the Federal Cartel Office acknowledged the increase in numbers, attributing it to the relatively recent establishment of the Competition Register in 2021, with a mandatory reporting requirement since December 1, 2021. The spokesperson cautioned it’s premature to draw definitive trends from the current data.