Fines against confectionery manufacturers again in court
Three confectionery manufacturers have been fined millions for alleged breaches of competition law. A legal dispute that has been going on for years is now once again before the Düsseldorf Higher Regional Court. The proceedings against the companies Bahlsen, Griesson de Beukelaer and CFP Brands will begin this Tuesday. The Federal Court of Justice (BGH) overturned an earlier ruling by the court in 2019 due to procedural errors.
The reason for the dispute dates back more than 15 years: an application for leniency by Mars GmbH triggered an investigation by the German Federal Cartel Office. Leading German confectionery manufacturers were alleged to have exchanged information between 2003 and 2008 about negotiations with food retailers and, in some cases, planned price increases. The competition authority saw this as a breach of antitrust law and imposed fines of 19.6 million euros on members of a working group of the "Konditionenvereinigung" of the German confectionery industry in 2013. Some companies, including Haribo, Katjes, Kraft, Storck and Zentis, accepted the fines.
Other defendants - such as Bahlsen, Griesson de Beukelaer and CFP Brands as well as the Federal Association of the German Confectionery Industry (BDSI) - lodged an appeal. However, the 4th Cartel Senate of the Düsseldorf Higher Regional Court not only ruled in favor of the Federal Cartel Office in 2017, but even increased the fines to almost 21 million euros. The reasoning: Although there had been no coordinated price agreements, there had been a regular exchange of information about negotiations with food retailers in breach of antitrust law and, in some cases, about intended price increases.#
Complaint to the Federal Court of Justice
Three companies then successfully appealed against the ruling to the Federal Court of Justice. In 2019, the Federal Court of Justice referred the case back to the 6th Cartel Senate of the Düsseldorf Higher Regional Court and the presiding judge Ulrich Egger (KRB 10/18) for a new hearing. Significant evidence and witness statements had not been sufficiently assessed, it said in its reasoning.
"It will be difficult to reopen the facts of the case after all these years, because witnesses' memories are fading. This favors the companies' prospects of a lower fine or even a dismissal of the proceedings," says antitrust lawyer Johannes Brück. According to a spokeswoman for the court, there were plea bargaining talks with the companies before the main hearing began. The parties did not wish to comment on the content of the talks. An initial 14 hearings have been scheduled until January 2024.
- The fines against confectionery giants Bahlsen, Griesson de Beukelaer, and CFP Brands were overturned by the Federal Court of Justice in 2019 due to procedural errors.
- The confectionery industry and related companies, such as food and beverage manufacturer Bahlsen, are often subject to antitrust investigations regarding price negotiations and information exchanges with retailers.
- The lawsuit against industry leaders like Bahlsen, Griesson de Beukelaer, and CFP Brands, along with other companies, stemmed from an antitrust violation allegation related to price discussions and, in some cases, planned price increases, dating back over 15 years.
Source: www.dpa.com
