The German Federal Cartel Office has initiated its first investigation under the new competition instrument introduced in 2023.
This unprecedented step aims to assess whether there is a significant and lasting disruption to competition in the fuel wholesale sector. If such a disruption is confirmed, the authority may implement targeted measures to restore market competition.
A New Approach to Address Structural Competition Issues
Andreas Mundt, President of the Federal Cartel Office, emphasized the limitations of traditional antitrust law in addressing structural competition disruptions. “When competition in a sector is hindered due to systemic circumstances, conventional antitrust measures—typically focused on individual violations—may not suffice. We have observed potential structural issues in fuel wholesale, particularly concerning widely used price information services, which could present significant competitive risks. Our investigation will determine the extent of this disruption and, if necessary, propose measures to restore competitive conditions.”
Concerns Raised by Sector Inquiry
The decision to launch this investigation follows a recently completed sector inquiry into refineries and fuel wholesale, published on February 19, 2025. Initial findings indicated that price information services used in fuel wholesale might pose risks to market competition. Specifically, the availability of detailed pricing data may facilitate collusion among market participants, potentially leading to price levels that exceed competitive rates. Additionally, there is concern that certain market actors might manipulate price quotations intentionally. However, the inquiry did not uncover explicit violations of antitrust law, prompting the need for further examination under the newly established legal framework.
Focus on Price Information Services
The Federal Cartel Office will now conduct an in-depth review of the two most widely used price information services in Germany—Argus Media and S&P Global. These services provide highly detailed market data, which, while essential for transparency, could inadvertently enable tacit price coordination among competitors. By scrutinizing these services, the authority seeks to understand their impact on market dynamics and determine whether regulatory intervention is warranted.
Legal Basis and Procedural Framework
The investigation falls under the provisions of Section 32f Paragraph 3 GWB, which allows for a multi-stage assessment of competition disruptions in specific or multiple markets. If a significant and ongoing disruption is confirmed, the Federal Cartel Office has the authority to implement corrective measures even without identifying specific antitrust violations. This approach is intended to complement existing regulatory tools, ensuring more effective and sustainable remedies for market distortions.
As this investigation progresses, the Federal Cartel Office will closely analyze the structure and functioning of the fuel wholesale market. The findings could set a precedent for future applications of the new competition instrument, reinforcing Germany’s commitment to maintaining a fair and competitive economic landscape.
