Austrian Authority Seeks €1.15 Million Fine Against Tönnies for Early Merger Implementation

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The Austrian Federal Competition Authority (BWB) has applied for a fine of €1.15 million against the German company Tönnies Unternehmensbeteiligungen GmbH for the unlawful implementation of a merger prior to receiving regulatory approval. The application was filed on 25 March 2026 with the Austrian Cartel Court.

Tönnies Unternehmensbeteiligungen GmbH is part of the Tönnies Group, one of Germany’s largest meat processing and food industry companies, which operates internationally in the production and distribution of pork and other food products.

The case concerns the acquisition of a 49% shareholding in the German company Ritzenhoff AG by Tönnies Unternehmensbeteiligungen GmbH. According to the authority, the transaction was implemented before it had been formally notified and cleared under Austria’s merger control rules. The merger was subsequently notified to the BWB and reviewed under case number Z-6554.

After examining the notified transaction, the authority approved the acquisition with effect from 15 May 2024, concluding that it did not raise competition concerns. The transaction relates to the sector for the manufacture, decoration and trade of glass and ceramic goods.

Despite the eventual approval, the BWB determined that the parties had violated the standstill obligation under Austrian merger control law by implementing the transaction before receiving clearance. This type of infringement, commonly referred to as “gun jumping,” occurs when companies complete or partially implement a notifiable concentration before the competition authority has completed its review.

According to the BWB, the prohibition on implementing mergers prior to approval is intended to safeguard competition by ensuring that authorities are able to assess and, where necessary, prevent transactions that could restrict market competition before they take effect.

The authority noted that Tönnies Unternehmensbeteiligungen GmbH voluntarily reported the violation. The company cooperated fully during the investigation and submitted an admission of liability as part of efforts to reach an amicable settlement.

Under Austria’s Cartel Act, the Cartel Court may impose fines of up to 10% of a company’s global turnover in the preceding financial year for breaches of merger control rules. In determining the amount of the fine, the court considers factors such as the severity and duration of the infringement, the degree of culpability, the company’s economic capacity, and the extent of its cooperation with the authorities.

The final decision on whether to impose the requested fine will be taken by the Austrian Cartel Court.