To be expensive? Authority is now looking at wholesale

To be expensive? Authority is now looking at wholesale

Competition law
High petrol prices: Authority is now looking at wholesale closer to their fingers






The cartel office takes a step towards possible measures against too high gasoline prices and uses a new instrument. Will fuel soon become cheaper?

The Bundeskartellamt is examining possible competitive problems in German fuel wholesalers. After a recently published sector examination had resulted in corresponding information, the authority now initiated a procedure to examine the situation more precisely. Specifically, the question is “whether there is a significant and permanent disturbance in the competition in fuel wholesalers”.

For the first time, the authority uses a new instrument that has been available to it since 2023. “If the competition in an industry is already disturbed due to structural conditions, the classic antitrust law, which is linked to a violation of the law of individual companies, will come to its limits,” explains President Andreas Mundt. The new instrument now allows the competitive hosts to also act against structural problems.

Petrol prices: Too much information can be a problem

In fuel wholesaling, there are indications of such a structural disorder of the competition, says Mundt. “In particular, the widespread price information services here could recover a high competitive risk. We now want to continue to pursue this.” These price information services are paid offers that contact the companies involved in the market. You have nothing to do with the widespread price comparison services and apps for fuel prices at petrol stations.

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By publishing very detailed market information, as with the price information services, “generally the risk of collusion, i.e. a tacit agreement between the market participants, increases to a price level that is above the competition price,” the cartel office explains the problem with the service. In addition, there is a risk that individual market participants manipulated price nodes.

“First we will check whether there is a significant and constant disturbance of the competition in individual markets or across the market,” says Mundt to the process that has now been initiated. “If this is confirmed, we will tackle the causes to revive the competition.” The Bundeskartellamt did not comment on how possible measures could look against it, as did the question of how long the examination will last.

In February, the cartel office published the results of its sector examination refineries and fuel wholesalers. This resulted in the indications of possible structural problems. However, the competitive keepers did not find any evidence of specific antitrust violations.

Dpa

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Source: Stern

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