Germany Boosts Antitrust Powers After Alleged Fuel Price Gouging

(Bloomberg) — The German government is giving antitrust authorities more power to crack down on price-gouging firms after gas-station operators and oil firms were accused of failing to pass on subsidies meant to help drivers hit by spiraling costs following Russia’s war in Ukraine.

As a last resort, rules to be announced on Wednesday will make it easier for regulators to claw back excess profits earned by any companies, according to a paper from the German Economy Ministry.

The revamp, which follows a promise by Economy Minister Robert Habeck, follows suspicions last summer that fuel suppliers may have overcharged customers, even though the Federal Cartel Office hadn’t been able to find clear evidence of any market abuse.

Under the new rules, the antitrust authority will be able to impose measures if it determines that competition in an industry has been disturbed — rather than prove that a company has abused its dominant position.

Finance Minister Christian Lindner, who made the fuel rebate possible at the time, also expressed his openness to the crackdown. After more than half a year, an agreement has now been reached and is to be approved by the cabinet tomorrow. The change then needs approval of the senate, the upper house of the German parliament.

Among other tools, regulators will be able to facilitate market access, stall mergers or even impose divestments. The ministry said the intervention rights are modeled on similar powers of the UK’s Competition and Markets Authority.

Businesses that have achieved their market position through innovation and a technological lead, however, can be exempted from the new regulation, according to the ministry.

–With assistance from Karin Matussek.

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