The head of Germany’s Federal Cartel Office (Bundeskartellamt), Andreas Mundt, is pressing the government for significantly enhanced tools to combat price-fixing and anti-competitive practices, signaling a growing concern over market distortions and the limitations of current regulatory frameworks. In an interview with “Politico’s” “Industry and Commerce” newsletter, Mundt argued that the agency’s ability to safeguard fair pricing is increasingly hampered by inadequate legal powers.
A core element of Mundt’s call for reform centers on the ability to scrutinize mergers even when they fall below the currently mandated revenue thresholds. He emphasized the emergence of “economically significant mergers” that escape oversight because participating companies do not meet the established thresholds. This concern is particularly acute in digital markets, where large corporations are engaging in strategies like “killer acquisitions” – acquiring, integrating, or effectively shutting down smaller firms – a phenomenon he suggests is difficult to adequately address with existing regulatory instruments. He proposed the implementation of “call-in powers” allowing the Cartel Office to proactively investigate potentially problematic cases irrespective of revenue thresholds, as a crucial tool to address this gap.
Mundt’s critique extends to the forthcoming reform of Germany’s procurement law. He advocates for a more assertive approach, urging the government to extend the expedited procurement procedures currently in place for the Bundeswehr (German armed forces) to the broader public sector. He contends that such streamlined processes are vital not only for defense technology but also for the efficient development of overall public infrastructure. Crucially, he insists that such reforms must be coupled with enhanced data access for the Cartel Office to monitor procurement processes effectively and detect potential collusion, potentially utilizing artificial intelligence to identify suspicious patterns in bid submissions. “Cartel agreements are difficult to unearth, but with the help of AI, patterns can be found, such as how bids are coordinated” he stated, highlighting the potential of data-driven oversight.
Beyond merger control and procurement, Mundt voiced skepticism about the government’s planned subsidized industrial electricity price for energy-intensive industries. He cautioned that such measures, while intended to provide relief, risk disproportionately benefiting large corporations while leaving smaller businesses at a disadvantage, potentially creating “a clear distortion of competition”. This concern reflects a broader anxiety that well-intentioned policy interventions can inadvertently exacerbate existing market inequalities and undermine fair competition.
The Cartel Office’s appeal for more comprehensive powers signals a recognition that the evolving nature of business, particularly within the digital economy, demands a more agile and proactive regulatory approach to ensure a level playing field for all market participants.