Director General Harsdorf-Borsch presents important milestones in the development of the competition authority
Vienna (PK) – According to the General Director for Competition, Natalie Harsdorf-Borsch, the activity report of the Federal Competition Authority (BWB) shows that important steps were taken in 2023 to prevent cartel formation. Among other things, the legal processing of the identified construction cartel has made significant progress, the MPs learned today Economic Committee. In 2023, the BWB also placed a particular focus on examining price developments on the food market. The BWB’s activity report was unanimously accepted.
Annual report of the Federal Competition Authority 2023 shows successes in cartel investigations
In 2023, the Austrian Federal Competition Authority (BWB) audited, according to its 2023 activity report (III-1178 d.B.) a total of 294 mergers of companies. A total of €51.2 million in fines were imposed by the cartel court at the BWB’s request on companies that had committed violations of Austrian or European competition law.
As the head of the competition authority, Director General Natalie Harsdorf-Borsch, explained to the economic committee, the authority’s budgetary situation has improved significantly in 2023. This was also urgently necessary, as new tasks had been added as a result of the EU’s Digital Market Act. Competition and industry monitoring has also been expanded. The amount of fines for competition violations that would flow into the federal budget makes it clear that the budget resources are being used well. On average, for every euro spent from budget funds, €6.5 was returned to the federal government, she calculated.
For the head of the authority, the success of the authority’s work was particularly evident in the rapid processing of the construction cartel, into which the investigation began in 2017. According to Harsdorf-Borsch, several proceedings with a total of €175.81 million in fines were concluded. The authority also investigated cartel formations in other areas, such as opinion research, the market for welding technology or facade construction.
Harsdorf-Borsch explained that the cartel court imposed fines of €175.81 million for the formation of the construction cartel in December 2023 due to price fixing, market sharing and the exchange of competition-sensitive information. More than 40 companies were investigated for anti-competitive practices to the detriment of states, municipalities and private clients.
In 2023, the authority also set priorities in preventing distortions of competition. In this context, it has expanded its cooperation with the state audit offices, to which it provides expertise. A preventive effect can also be seen in the fact that companies often withdraw merger applications if the competition authority expresses concerns about a merger.
Last year, the BWB also focused on the competitive situation in the food industry. The industry investigation confirmed that the food industry sometimes charges different prices for the same products in the respective countries in accordance with their country strategies. In view of the crisis-related energy price developments, the Federal Competition Authority, together with E-Control, is examining the electricity and gas markets in a task force to determine the causes of the declining competition and the plausibility of domestic price increases in this area.
Much praise from the MPs for work at the Federal Competition Authority
Laurenz Pöttinger (ÖVP) and Axel Kassegger (FPÖ) expressed express praise for the authority. Kassegger particularly highlighted the report on the task force on energy markets.
For Elisabeth Götze (Greens), the report shows that the competition authority is functioning and doing good work. She asked in detail about the effects of the steps taken against an identified sugar cartel and against the restrictions on competition in delivery services and ordering platforms.
Director General Harsdorf-Borsch explained that her authority was still conducting further research into ordering platforms and food delivery services because the companies contacted had not yet provided enough data. The fundamental problem is that there are only a few market-dominant providers and the hurdles to market entry are very high. The sugar cartel affected industrial sugar and thus primarily large companies. The investigations have been completed, but it is still too early to say anything about the impact on the markets.
Götze also wanted to know what was behind the BWB’s desire for a budget management position. Christoph Matznetter (SPÖ) also agreed with the question about the budgetary position. Matznetter also asked how the authority could be strengthened.
Harsdorf-Borsch explained that due to the strong expansion of the BWB, it was the authority’s wish to examine whether the establishment of a budget-managing office could strengthen its operational independence. From their point of view, the step would definitely make sense. In any case, it would be desirable to strengthen the authority when expanding powers to control competition in the digital sector. She should also have easier access to data from Statistics Austria. The possibility of being able to take measures yourself after industry investigations without having to go to the antitrust court should also be considered. In some countries this option exists. However, a legal framework would be required for this.
Gerald Loacker (NEOS) also emphasized that the competition authority plays an important role in preventing the abuse of a dominant market position. He wanted to know whether the recommendations for the food trade had already been successful.
The head of the BWB explained that the investigation into the “Austrian surcharge” on food had shown a specific problem in the internal market. Companies would have the option, for example, to prevent cross-border trade in certain products. The next European Commission should also address this question.
FPÖ MP Maximilian Linder (FPÖ) pointed out that the losers in construction cartels are primarily the municipalities. He wanted to know to what extent they had already had success with their class action lawsuits.
Harsdorf-Borsch confirmed that cartel formation in the construction sector primarily affected the public sector. However, it turns out that it is difficult for municipalities to work together to initiate class action lawsuits. In addition, out-of-court settlements are likely to often occur.
Kocher: Changed antitrust law is having an effect
From the perspective of Economics Minister Martin Kocher, the competition authority’s report shows that the changes to antitrust law are already having an impact. The question is whether more could be achieved by creating an opportunity for the BWB to take action itself in the event of violations. From his point of view, it makes sense to first evaluate the effect of the legal steps that have already been taken before considering further ones.
When it comes to the different food prices in Europe, the Austrian study made the problem clear as a European one, said Kocher. In any case, he will continue to communicate with the European Commission. The competition issues raised here must be resolved at European level.
As far as the Digital Markets Act is concerned, Kocher also currently sees a need for enforcement at the European level; at the national level, he currently sees no need for legal adjustments. (Continuation of the Economic Committee) sox
Questions & Contact:
Press service of the Parliamentary Directorate
Parliamentary correspondence
Tel. +43 1 40110/2272
press service@parlament.gv.at
http://www.parlament.gv.at
www.facebook.com/OeParl
www.twitter.com/oeparl