The Bundeskartellamt has cleared plans by Bosch, Infineon and NXP to each acquire 10 per cent of the shares in European Semiconductor Manufacturing Company (ESMC), a company established by Taiwan Semiconductor Manufacturing Company (TSMC). ESMC intends to build and operate another large semiconductor factory in Dresden, in which the three European technology companies are also to be involved.

Andreas Mundt, President of the Bundeskartellamt: "“Recent geopolitical upheavals have underlined the importance of secure access to semiconductors, especially also for the German industry. Both the European Union and Germany are therefore very committed to bringing more semiconductor manufacturers back to Europe and Germany. It is the Bundeskartellamt’s task to ensure that the requirements under competition law are complied with in this process. According to our examination, the fact that Bosch, Infineon and NXP will also have a share in the new TSMC semiconductor factory in Dresden is fully in line with the requirements under merger control. Our proceeding does not include an assessment under state aid law of the envisaged public funding for the company to settle in Dresden.”".

TSMC is by far the largest company in the world which, as a pure contract manufacturer, transfers predefined chip designs to slices of semiconductor material (referred to as wafers). It is also one of the leading companies in this sector.

Bosch, Infineon and NXP are technology companies which widely use semiconductor chips in their products. For this purpose, they not only produce the chips themselves but also rely on contract manufacturers such as TSMC.

First, the Bundeskartellamt assessed the extent to which the participation of the three European companies in the factory to be built by ESMC was likely to prevent other customers from accessing the semiconductor chips that are also important for their business. Second, the Bundeskartellamt considered the extent to which other contract manufacturers of semiconductor chips were likely to no longer find enough customers for certain products as a result of the transaction. In its assessment, the authority focused on the manufacture of so-called micro controlling units (MCUs), which are used in many products and increasingly also in cars. Bosch, Infineon and NXP are major players in this field.

The Bundeskartellamt concluded that there was no cause for concern in this respect. The large factory of ESMC’s direct competitor Global Foundries is also located in Dresden, which means that there is another capable supplier providing Bosch, Infineon, NXP and their competitors with the semiconductor chips they need. At the same time, the participation gives the three companies only limited access to ESMC’s capacity and there are significantly more capacities available worldwide. These capacities are to be expanded considerably in Europe and worldwide. Since the semiconductor chips which can be manufactured in the factories of TSMC and its competitors can be used in a wide variety of products and demand for semiconductor chips is steadily growing, there was no reason to believe that it would become significantly more difficult to access customers using these chips in the foreseeable future.

Bundeskartellamt Approves Bosch, Infineon, and NXP's Stake in TSMC's New Dresden Factory

The Bundeskartellamt has cleared the acquisition of 10 percent shares each by Bosch, Infineon, and NXP in the European Semiconductor Manufacturing Company (ESMC), which is set to build a new semiconductor factory in Dresden, Germany. This decision highlights the commitment of both the European Union and Germany to enhance semiconductor manufacturing within Europe, especially in light of recent geopolitical challenges.

 Andreas Mundt, President of the Bundeskartellamt, stated that ensuring secure access to semiconductors is crucial for the German industry. The authority's examination confirmed that the participation of these three companies in the new factory aligns with merger control requirements, although it did not assess the public funding aspects under state aid law.

 TSMC, the world's largest contract semiconductor manufacturer, will operate the new factory, which is expected to significantly contribute to the supply of semiconductor chips. Bosch, Infineon, and NXP, all major technology companies, rely on these chips for their products and also utilize contract manufacturers like TSMC.

 The Bundeskartellamt evaluated whether the involvement of Bosch, Infineon, and NXP would hinder other customers' access to essential semiconductor chips. It also considered the potential impact on other contract manufacturers' ability to find customers. The authority focused on micro controlling units (MCUs), which are increasingly used in various products, including automobiles.

 Ultimately, the Bundeskartellamt found no significant concerns, noting the presence of Global Foundries, a direct competitor, in Dresden, which ensures alternative supply options. The limited access to ESMC's capacity for the three companies and the anticipated expansion of semiconductor manufacturing capacities globally further alleviated concerns about market access.



Bundeskartellamt clears acquisition of shares in new TSMC semiconductor factory in Dresden by Bosch, Infineon and NXP

The anti-competitive coordination of prices in the supply of medical aids by the Working Group of Associations of Suppliers of Medical Aids (“ Arbeitsgemeinschaft von Hilfsmittelverbänden ”, ARGE ) has been terminated. This is the result of a proceeding the Bundeskartellamt conducted on account of coordinated price increases to the detriment of the statutory health insurance companies against the ARGE members, that is against the following associations of suppliers of medical aids: Sanitätshaus Aktuell AG , EGROH, rehaVital, Reha-Service-Ring, Cura-San and Bundesinnungsverband Orthopädietechnik.

Andreas Mundt, President of the Bundeskartellamt : “ "Suppliers of medical aids are allowed to cooperate. However, the purpose of ARGE was to more or less eliminate price competition at the expense of health insurance companies. With our proceeding we quickly put a stop to this practice. This sends a clear signal to the medical aid sector, which has already been effective and will also be important in the future: Negotiations conducted by working groups or associations on the supply and demand side are required for an efficient supply and are provided for by law. If, however, price competition is de facto eliminated by coordinated conduct, in this case even at the highest level of associations, a red line is crossed.". ”

Suppliers of medical aids, such as health care supply stores, orthopaedic technicians and others, are allowed to form national associations to collectively negotiate with health insurance companies regarding the provision of medical aids to patients. Only in this way can suppliers of medical aids ensure that all patients are supplied throughout Germany. The associations of suppliers of medical aids were organised as “ARGE”.  ARGE represents around 80 per cent of all outlets supplying technical aids for rehabilitation in Germany. In the negotiations between ARGE and the health insurance companies ARGE thus acted as a quasi-monopolist.  At least from September 2021 the ARGE members had called for uniform price increases for medical aids within the framework of existing supply contracts with the health insurance companies. In many cases they were able to enforce the price increases. The reason the health insurance companies were given for the increases was that the Covid-19 pandemic had had cost-relevant effects (increased freight, shipping and raw material costs). In March 2022 the Bundeskartellamt had initiated a cartel administrative proceeding against these practices, and in January 2023 it had sent a statement of objections to the ARGE members ( see press releases of 23 March 2022 , 25 January 2023 ).

Although cooperation in the supply of medical aids is possible under the law, the line drawn by competition law is definitely crossed when all relevant associations join forces or cooperate to an extent which almost completely eliminates competition. Even unforeseen cost increases do not justify the attempt to enforce general price increases through supply monopolies. The ARGE members had imposed price increases on the health insurance companies for practically all products and services offered, without providing a calculation related to the product-specific cost increases.

After the Bundeskartellamt had objected to this practice, the parties refrained from entering into a legal dispute about the scope of competition law and dissolved ARGE. The contracts concerned have meanwhile been terminated or cancelled, and the parties have agreed not to engage in the practices objected to in the future. The Bundeskartellamt accepted the commitments proposed by the parties and declared them binding in a decision pursuant to Section 32b of the German Competition Act ( Gesetz gegen Wettbewerbsbeschränkungen – GWB ) (Commitments), so that the proceeding is now concluded.

Bundeskartellamt Halts Price Fixing in Medical Aids Sector

The Bundeskartellamt has concluded a proceeding against the Working Group of Associations of Suppliers of Medical Aids (ARGE) for engaging in anti-competitive price coordination that harmed statutory health insurance companies. This action was prompted by coordinated price increases initiated by ARGE members, which include several associations of medical aid suppliers.

Andreas Mundt, President of the Bundeskartellamt, emphasized that while cooperation among suppliers is permissible, the ARGE's actions effectively eliminated price competition, crossing a critical line in competition law. The ARGE represented about 80% of outlets supplying rehabilitation aids in Germany and had been pushing for uniform price increases since September 2021, citing cost pressures from the Covid-19 pandemic.

In March 2022, the Bundeskartellamt initiated an administrative proceeding against these practices, leading to a statement of objections in January 2023. The ARGE members had attempted to justify their price hikes without providing adequate cost calculations, which the Bundeskartellamt found unacceptable.

Following the objections, the parties opted to dissolve ARGE and terminate the contracts related to the price coordination. They have also committed to refrain from similar practices in the future, with the Bundeskartellamt accepting these commitments as binding, thus concluding the proceeding.



Provision of medical aids: Anti-competitive price coordination stopped following Bundeskartellamt proceeding

The Bundeskartellamt has today cleared REWE ’s plans to acquire 15 grocery stores operated under the “ Mein Real ” brand.

The stores are located in Böblingen, Coesfeld, Ettlingen, Erfurt, Euskirchen, Gosen-Neu Zittau, Hagen, Hohe Börde, Ingelheim, Karlsruhe, Mülheim-Kärlich, Salzgitter, Schwentinental, Übach-Palenberg and Wernigerode (see list of stores below).

Whether REWE will actually acquire the stores after the authority’s clearance decision still depends on a number of factors, for example on whether REWE and the current lessors can come to an agreement.

The 15 stores are part of the around 60 remaining “ Mein Real ” stores operated by Real GmbH , which is controlled by the investment company SCP. Since the end of September 2023, Real GmbH has been under debtor-in-possession management within the framework of insolvency proceedings initiated due to economic problems.

Andreas Mundt , President of the Bundeskartellamt : “ "The takeover of the 15 ‘Mein Real’ stores by". REWE "does not raise competition concerns in any of the market areas affected. We want to make sure that there is a sufficient number of different food retailers between which consumers can choose when they shop locally. We took this into account in our clearance decision. The takeover process can be continued by the companies as they are looking for ways to find viable prospects for the affected stores in this difficult situation. Although comprehensive investigations were required, we already cleared the project very quickly in the first phase of merger control.". ”

In a number of previous proceedings the authority had thoroughly examined takeovers of stores that at the time were still operated under the “Real” brand. The takeover of Real stores by Kaufland in December 2020 and by EDEKA in March 2021 were cleared subject to conditions. The authority cleared the takeover by Globus without conditions ( see press release of 22 December 2020 and press release of 17 March 2021 ). Based on the market knowledge gained in particular from these proceedings, the in-depth examination of the present case could be quickly concluded.

The fact that “ Mein Real ” already cooperates with REWE in the procurement of goods also had to be taken into consideration. After an intensive examination the Bundeskartellamt had decided not to initiate a proceeding against the purchasing cooperation ( see press release of 13 April 2022 ).

The REWE group is active in the wholesale and retail sectors, in particular food wholesale and retail, in Germany and other European countries. The group also operates specialist outlets and production facilities and is active in the tourism sector. In 2022 REWE ’s turnover amounted to 51 billion euros in Germany and 77 billion euros in Europe.

Bundeskartellamt Approves REWE's Acquisition of 15 'Mein Real' Stores

The Bundeskartellamt has granted clearance for REWE to acquire 15 grocery stores operating under the 'Mein Real' brand, located across various cities in Germany. This decision comes as part of the ongoing insolvency proceedings of Real GmbH, which is currently under debtor-in-possession management due to financial difficulties.

 Andreas Mundt, President of the Bundeskartellamt, stated that the acquisition does not raise any competition concerns in the affected market areas. The authority emphasized the importance of maintaining a diverse range of food retailers for consumer choice in local shopping. The clearance was expedited due to prior knowledge gained from similar cases involving the acquisition of Real stores by other retailers.

 REWE's existing cooperation with 'Mein Real' in procurement was also a factor in the authority's decision. The approval allows REWE to continue exploring viable options for the affected stores, although the final acquisition will depend on negotiations with current lessors.

 REWE is a significant player in the wholesale and retail sectors in Germany and Europe, with a reported turnover of 51 billion euros in Germany and 77 billion euros across Europe in 2022.



REWE can take over 15 “Mein Real” stores

• ICN Annual Conference in Barcelona (#ICNBarcelona2023) from 18 to 20 October 2023

• Plenary Sessions will also be livestreamed

• Representatives from close to 100 jurisdictions

The 22nd Annual Conference of the International Competition Network ( ICN ) will be hosted by the Spanish National Markets and Competition Commission ( CNMC ) in Barcelona from 18 to 20 October 2023. Rising close to an unprecedented 100, the number of jurisdictions represented by the members and NGAs attending the event will be larger than ever before.

The ICN is the most important network of competition authorities worldwide. It comprises more than 140 competition agencies.

Andreas Mundt, ICN Chair and President of the Bundeskartellamt : “ "The ICN and our joint work towards convergence are more important than ever in these increasingly challenging times. In addition to traditional antitrust issues, we need to consider cross-cutting topics and think outside the box". .”

At the conference, participants will discuss and exchange experiences in Working Group sessions and address cross-cutting issues, including the interaction with courts, intersection of competition and data, food markets with a focus on developing countries, artificial intelligence, and sustainability.

Andreas Mundt is scheduled to speak at the “Intersection between Competition & Privacy” session on Thursday, 19 October, 10:15-11:00.

For further information on the ICN Annual Conference, please visit the conference website . The livestreams of the plenary sessions will be available here without prior registration.

Record Participation Anticipated at ICN Annual Conference in Barcelona

The International Competition Network (ICN) is set to host its 22nd Annual Conference in Barcelona, organized by the Spanish National Markets and Competition Commission (CNMC). Scheduled from October 18 to 20, 2023, this year's conference is expected to see record participation, with representatives from close to 100 jurisdictions attending.

The ICN is recognized as the leading global network of competition authorities, comprising over 140 competition agencies. Andreas Mundt, the ICN Chair and President of the Bundeskartellamt, emphasized the importance of the ICN's collaborative efforts in addressing both traditional antitrust issues and emerging cross-cutting topics in today's complex environment.

During the conference, participants will engage in Working Group sessions to discuss various themes, including the interaction between competition and judicial systems, the intersection of competition and data, food markets with a focus on developing countries, artificial intelligence, and sustainability. Notably, Mundt will speak at a session titled “Intersection between Competition & Privacy” on October 19.

For those unable to attend in person, the plenary sessions will be livestreamed, allowing broader access to the discussions without the need for prior registration.



22nd ICN Annual Conference – Record participation expected in Barcelona

Alphabet Inc., Google’s parent company, gives users better choice as to how Google processes their data according to Commitments undertaken by Google. The Commitments are the result of a proceeding conducted by the Bundeskartellamt based on the new instrument under competition law, which allows the Bundeskartellamt to intervene when competition is threatened by large digital companies (Section 19a of the German Competition Act, GWB). The new provision was introduced in 2021. The proceeding is a testament to the close cooperation between the Bundeskartellamt and the European Commission on the way to achieving more competition and fair markets in the digital sector.

Andreas Mundt, President of the Bundeskartellamt : “ Data are key for many business models used by large digital companies. The market power of large digital companies is based on the collection, processing and combination of data. Google’s competitors do not have these data and are thus faced with serious competitive disadvantages. In the future users of Google services will have a much better choice as to what happens to their data, how Google can use them and whether their data may be used across services. This not only protects the users’ right to determine the use of their data, but also curbs Google’s data-driven market power. Large digital companies offer a wide range of different digital services. Without the users’ free and informed consent the data from Google’s services and third-party services can no longer be cross-used in separate services offered by Google or even be combined. We have made sure that Google will provide a separate choice option in the future. "Data are key for many business models used by large digital companies. The market power of large digital companies is based on the collection, processing and combination of data. Google’s competitors do not have these data and are thus faced with serious competitive disadvantages. In the future users of Google services will have a much better choice as to what happens to their data, how Google can use them and whether their data may be used across services. This not only protects the users’ right to determine the use of their data, but also curbs Google’s data-driven market power. Large digital companies offer a wide range of different digital services. Without the users’ free and informed consent the data from Google’s services and third-party services can no longer be cross-used in separate services offered by Google or even be combined. We have made sure that Google will provide a separate choice option in the future.". ”

Google’s Commitments concern situations where the company would like to combine personal data from one Google service with personal data from other Google or non-Google sources or cross-use these data in Google services that are provided separately. Such an obligation will already result from the DMA for Google services which have recently been designated by the European Commission under the DMA (see also: Press release designates decision of the European Comission ). Relevant core platform services listed in the Commission's designation decision are thus not covered by the Commitments. This applies to Google Shopping, Google Play, Google Maps, Google Search, YouTube, Google Android, Google Chrome and Google's online advertising services. In addition to these services, Google’s Commitments provided to the Bundeskartellamt concern the processing of data across services involving more than 25 other services (including Gmail, Google News, Assistant, Contacts and Google TV ).

In the future Google will have to provide its users with the possibility to give free, specific, informed and unambiguous consent to the processing of their data across services. For this purpose Google has to offer corresponding choice options for the combination of data. The selection dialogues must be designed so as not to guide users manipulatively towards cross-service data processing (avoiding “dark patterns”). Where data are not actually processed across services and Google’s data processing terms explicitly make this clear, Google will not have to offer choice options. Any obligations under the General Data Protection Regulation remain unaffected by these obligations.

Andreas Mundt: “ Our proceeding shows that the Digital Markets Act and Section 19a GWB complement each other in a useful way. We cooperated with the European Commission throughout the proceeding and will also coordinate any further enforcement measures within the framework of the European Competition Network. The platform regulation pursuant to the Digital Markets Act by far does not cover all services offered by the companies which have been designated as gatekeepers, and it does not cover all competition issues either. For this reason it remains important to resolutely apply competition rules in parallel to the enforcement of the DMA "Our proceeding shows that the Digital Markets Act and Section 19a GWB complement each other in a useful way. We cooperated with the European Commission throughout the proceeding and will also coordinate any further enforcement measures within the framework of the European Competition Network. The platform regulation pursuant to the Digital Markets Act by far does not cover all services offered by the companies which have been designated as gatekeepers, and it does not cover all competition issues either. For this reason it remains important to resolutely apply competition rules in parallel to the enforcement of the DMA". .“

By cooperating closely, the Bundeskartellamt and the European Commission also intend to give Google the possibility to proceed in a uniform manner. The requirements for sufficient choice to be offered pursuant to Google’s Commitments essentially equal those under the DMA . The Bundeskartellamt also exchanged information with the German data protection authorities.

Background information:

The proceeding regarding Google’s data processing terms is based on the relatively new provisions under Section 19a GWB, which have been in force since January 2021. Pursuant to these provisions, the Bundeskartellamt can prohibit, in a two-step approach, companies which are of paramount significance for competition across markets from engaging in certain anti-competitive practices. Besides the proceeding which is now concluded, the Bundeskartellamt is also conducting further proceedings against Google (Alphabet), Amazon, Apple, Facebook (Meta) and Microsoft .

In its decision of 30 December 2021 the Bundeskartellamt determined in a first step that Alphabet Inc. is of paramount significance for competition across markets. The proceeding regarding Google’s data processing terms was initiated in parallel in May 2021. At the European level, the Digital Markets Act ( DMA ) has been in force since 1 November 2022 and has become applicable as of 2 May 2023. Article 5(2) DMA contains similar provisions to the German competition regulations under Section 19a(2) sentence 1 no. 4a GWB , which was inspired by the Bundeskartellamt ’s Facebook proceeding. The Bundeskartellamt and the European Commission cooperated closely in the course of the proceeding. In early September 2023 the European Commission designated Alphabet as a “gatekeeper”. Effective March 2024 Alphabet has to comply with the obligations under the DMA with regard to its services Google Shopping, Google Play, Google Maps, Google Search, YouTube, Google Android, Google Chrome and Google’s online advertising services. The Bundeskartellamt ’s decision to declare Google’s Commitments binding essentially extends Google’s obligations under Article 5(2) DMA to further Google services and thus makes Alphabet subject to “further obligations” within the meaning of the DMA . The Bundeskartellamt and the European Commission will continue to coordinate their future enforcement activities closely and cooperate in order to facilitate an effective interplay between competition law and the DMA .

The Bundeskartellamt's public decision is available here.

Bundeskartellamt Enhances User Control Over Google Data Processing

The Bundeskartellamt, Germany's competition authority, has reached an agreement with Alphabet Inc., Google's parent company, to enhance user control over how their data is processed. This initiative stems from a proceeding under Section 19a of the German Competition Act, which allows intervention against large digital companies when competition is threatened.

 Andreas Mundt, President of the Bundeskartellamt, emphasized the importance of data in the business models of large digital firms, noting that Google's competitors face significant disadvantages due to their lack of access to data. The new commitments will enable users to make informed choices about their data, thereby limiting Google's market power and ensuring that data from different services cannot be combined without explicit user consent.

 Google's commitments specifically address the processing of personal data across various services, including Gmail, Google News, and Google TV, among others. Users will now have the option to provide clear and informed consent regarding the use of their data across these services, with safeguards against manipulative design practices.

 This proceeding illustrates the complementary nature of the Digital Markets Act (DMA) and Section 19a GWB, as both aim to enhance competition in the digital sector. The Bundeskartellamt and the European Commission have collaborated closely throughout this process, ensuring that Google's obligations align with those under the DMA.

 In addition to this proceeding, the Bundeskartellamt is investigating other major tech companies, including Amazon, Apple, Facebook (Meta), and Microsoft, to ensure compliance with competition laws. The authority's decision to bind Google to these commitments extends its obligations under the DMA, reinforcing the need for effective enforcement of competition rules in the digital landscape.



Bundeskartellamt gives users of Google services better control over their data

The Bundeskartellamt has cleared the creation of a joint venture in Ukraine between Rheinmetall Landsysteme GmbH , Unterlüß, and Ukrainian Defense Industry ( UDI ), Kyiv. Rheinmetall is a globally active technology group operating in the defence industry and the automotive components market. UDI is a Ukrainian state-owned company in the defence sector with around 67,000 employees and is controlled by the Cabinet of Ministers of Ukraine.

Andreas Mundt, President of the Bundeskartellamt : "“Given the current geopolitical situation, there is considerable movement in the defence industry. The joint venture between Rheinmetall and Ukrainian Defense Industry which the Bundeskartellamt was to assess is to be based in Ukraine and will operate in the construction and maintenance of military vehicles. The project does not result in any overlaps in terms of competition in Germany. We have cleared the project quickly.”".

The joint venture is to be based in Kyiv and will operate in the provision of service and maintenance, assembly, manufacturing and development of military vehicles. It will for now exclusively be active on Ukrainian territory. There are no overlaps in terms of competition in Germany, nor are there any indications suggesting competition concerns would arise. The Bundeskartellamt has cleared the merger plans within the one-month deadline of first-phase merger control.

Rheinmetall is known as a producer of a range of (armoured) military vehicles (including the Leopard battle tank, the Puma infantry fighting vehicle and the Fuchs wheeled armoured vehicles). UDI comprises various companies operating in the defence industry (production of arms and military equipment).

The Bundeskartellamt has already dealt with questions regarding access to maintenance of military vehicles in Germany and, for instance, safeguarded competition in the maintenance of “GTK Boxer” wheeled armoured transport vehicles ( see press release of 13 March 2023 ).

Bundeskartellamt Approves Rheinmetall and Ukrainian Defense Industry Joint Venture

The Bundeskartellamt, Germany's federal competition authority, has granted approval for a joint venture between Rheinmetall Landsysteme GmbH and the Ukrainian Defense Industry (UDI). This collaboration is set to take place in Kyiv, focusing on the construction, maintenance, assembly, manufacturing, and development of military vehicles.

 Rheinmetall, a prominent player in the defense and automotive sectors, is known for producing various military vehicles, including the Leopard battle tank and Puma infantry fighting vehicle. UDI, a state-owned entity in Ukraine, employs around 67,000 individuals and is overseen by the Cabinet of Ministers of Ukraine.

 Andreas Mundt, President of the Bundeskartellamt, highlighted the significance of this joint venture in light of the current geopolitical climate, noting that it does not create any competitive overlaps in Germany. The authority completed its assessment within the one-month deadline for first-phase merger control, indicating a swift clearance process.

 The joint venture will initially operate solely within Ukrainian territory, with no immediate competition concerns identified. The Bundeskartellamt has previously addressed issues related to military vehicle maintenance in Germany, ensuring competitive practices in this sector.



Joint venture between Rheinmetall and Ukrainian Defense Industry cleared

The

Bundeskartellamt

has no competition law concerns regarding a cooperation project in the automotive industry to standardise the production of cable sets commonly referred to as wire harnesses. The authority has informed the participants in the “Innovation Initiative Wire Harness” (IIWH), which is a project under the umbrella of the “Arena2036 research campus”, that in exercising its discretionary powers it does not object under competition law to their “standardisation initiative for cable sets” or to the new

standard that is to be developed in this context. In exercising its discretionary powers the Bundeskartellamt will not, for the time being, object to the other parts of this project, either.

The initiative is a cooperation project between different companies from all levels of the value chain in the automotive industry which aims to explore opportunities for more automation in the production of wire harnesses.

Andreas Mundt, President of the

Bundeskartellamt

: “

"Standardisation projects are cooperation projects between companies and as such must always comply with the principles of competition law. As part of such processes companies agree on shared norms and standards instead of competing with one another to find the best solution. Competition law does not stand in the way of such projects. However, it has to be ensured that such cooperation projects are objectively intended to promote standardisation and that the standardisation process is non-discriminatory, transparent and open to all companies concerned".

.”

The wire harness comprises practically all wires in a vehicle and is one of the most complex and expensive vehicle components. In the foreseeable future, wire harnesses will become even more important and complex, because vehicles are becoming increasingly digital. So far, their production is a largely manual process which varies depending on the individual combination of (extra) equipment and the vehicle type. For several reasons, automating the production of wire harnesses has been very complex so far.

This automotive industry initiative intends to develop plug connections and cable routings as well as other methods and tools that facilitate automation and thus improve this situation. The results obtained so far have been included in a new

standard, which is the first in the world to standardise technical aspects of production processes for wire harnesses in cars.

The project comprises both research and development (R&D) and standardisation aspects. From a competition law perspective, such a “mixed” cooperation raises the question of the legal requirements based on which its compliance with competition law is to be assessed, as different criteria apply to the compliance of R&D cooperation projects and cooperation projects in the area of standardisation. In R&D for example, it is normally undesirable from a competition law perspective to see the majority of market participants pursue a single technology path when they are only just beginning to look for a solution.

After the

Bundeskartellamt

had provided guidance on the competition law requirements their cooperation project had to meet, the participants restructured their original plans to separate its R&D parts more clearly from its standardisation part.

Bundeskartellamt Approves Automotive Wire Harness Standardization Initiative

The Bundeskartellamt, Germany's competition authority, has announced that it has no competition law concerns regarding a new initiative in the automotive industry focused on standardizing the production of wire harnesses. This initiative, known as the 'Innovation Initiative Wire Harness' (IIWH), is part of the 'Arena2036 research campus' and involves collaboration among various companies across the automotive value chain.

 Andreas Mundt, President of the Bundeskartellamt, emphasized that while standardization projects involve cooperation among companies, they must adhere to competition law principles. The authority has stated that it will not object to the standardization initiative or other components of the project at this time, provided that the cooperation is aimed at promoting standardization in a non-discriminatory and transparent manner.

 Wire harnesses are critical components in vehicles, encompassing nearly all wiring and representing a significant portion of production costs. As vehicles become more digital, the complexity and importance of wire harnesses are expected to increase. The current production process is largely manual and varies by vehicle type, making automation a challenging task.

 The IIWH aims to develop new plug connections, cable routings, and tools to facilitate automation in wire harness production. The initiative has already produced a new standard, the first of its kind globally, which standardizes technical aspects of wire harness production processes. The project combines research and development (R&D) with standardization, raising questions about compliance with competition law, as different criteria apply to these types of cooperation.

 Following guidance from the Bundeskartellamt on the legal requirements for their cooperation, the participants in the initiative have restructured their plans to clearly separate the R&D components from the standardization aspects, ensuring compliance with competition law.



No competition law concerns regarding automotive industry cooperation in the area of wire harnesses

Since the second half of July the average prices charged for diesel and E5/E10 have continuously increased. When comparing prices as at 1 July and 14 August, prices increased as follows (average prices in euros per litre):

• E5: from 1.85 to 1.92

• E10: from 1.79 to 1.86

• Diesel: from 1.61 to 1.78

Rising Fuel Prices: Diesel and E5/E10 Costs Surge in Germany

Since the second half of July, the average prices for diesel and E5/E10 fuels in Germany have been on a continuous upward trend. This increase has been notable when comparing the prices from July 1 to August 14.

 Specifically, the price of E5 fuel rose from €1.85 to €1.92 per litre, while E10 saw an increase from €1.79 to €1.86 per litre. Diesel prices also experienced a significant jump, moving from €1.61 to €1.78 per litre during the same period.

 The rising costs of these fuels may have implications for consumers and the broader economy, as higher fuel prices can lead to increased transportation costs and affect various sectors reliant on fuel.

