The Austrian Federal Competition Authority (AFCA) has taken action against Tönnies Unternehmensbeteiligungen GmbH for executing an illegal merger by acquiring 49% of Ritzenhoff AG's shares without prior approval. The merger, which falls under the glass and ceramic products sector, was cleared by the AFCA effective May 15, 2024, after the authority found no competition concerns.

Tönnies Unternehmensbeteiligungen GmbH voluntarily approached the AFCA regarding its breach, demonstrating cooperation and acknowledging the infringement. This proactive approach aims to resolve the matter amicably.

Illegal mergers are those that fail to comply with notification obligations and are executed without the necessary approvals from the AFCA. The standstill obligation is crucial as it protects competition from potential harmful effects that could arise from unapproved mergers.

Under the Federal Cartel Act (KartG), any actions that prevent or distort competition are prohibited. Breaching the standstill obligation limits the authority's ability to mitigate restrictive effects. The Cartel Court can impose fines of up to 10% of a company's total turnover from the previous business year for such breaches, with penalties determined by the severity and duration of the infringement, the degree of fault, and the company's economic strength and cooperation.