German Competition Authority Investigates Fuel Wholesale Market

The Bundeskartellamt, Germany's federal competition authority, has initiated an investigation into potential competition issues within the country's fuel wholesale sector. This decision follows findings from a recently published sector inquiry that suggested possible disturbances in market competition.

The agency is particularly focused on determining whether there exists a significant and persistent disruption to competition in the fuel wholesale market. This marks the first time that the authority is employing a new regulatory tool introduced in 2023, which enables action against structural issues affecting competition, even in the absence of direct legal violations by specific companies.

Andreas Mundt, the president of the Bundeskartellamt, noted that traditional competition law frameworks, which typically rely on proving violations by individual firms, may fall short when competition is compromised due to inherent structural factors. The newly acquired tool allows regulators to address these systemic issues more effectively.

Concerns have been raised regarding the prevalence of price information services in the fuel wholesale market, which could pose substantial competitive risks. These paid services, which cater to businesses in the market, differ from consumer-facing price comparison apps commonly used by motorists. The Bundeskartellamt cautions that the dissemination of overly detailed market data may increase the likelihood of collusion among market participants, potentially leading to price agreements that exceed competitive levels.

Furthermore, there is apprehension that some market players might manipulate price listings to their advantage. The authority is set to investigate whether there are significant and ongoing competitive disruptions on specific markets or across the broader market landscape.

Should the investigation confirm the presence of substantial competition issues, the Bundeskartellamt will seek to identify the underlying causes and implement strategies to restore effective competition within the sector. However, the authority did not disclose potential measures that may be taken or the expected duration of the investigation.

In February, the Bundeskartellamt released the findings from its inquiry into refineries and the fuel wholesale market, which highlighted indicators of possible structural problems but found no direct evidence of violations of competition law.