
Bayern Munich 2025/26 Season Preview: Challenges Ahead for Kompany's New-Look Side
Section: Arts
In recent developments within the German online retail sector, the proposed merger between Zalando and About You has raised questions about market dynamics and competition. Tomaso Duso, head of the Companies and Markets Department at the German Institute for Economic Research and chairman of the Monopolies Commission, shared insights on this topic.
In the digital marketplace, consolidation appears to be a growing trend. Larger companies often acquire smaller competitors, creating platforms that can better connect buyers and sellers. This consolidation can lead to increased efficiency, allowing firms to offer lower prices and a wider range of products. The merger between Zalando and About You has been approved, reflecting that, in many cases, larger entities can provide more competitive offerings.
However, Duso emphasized the need to maintain a healthy level of competition. He warned against the 'winner-takes-all' phenomenon, where one company dominates the market, resulting in decreased competition. Regulatory bodies, such as the Federal Cartel Office in Germany, play a crucial role in monitoring these mergers to prevent monopolistic practices. They can require companies to sell parts of their business or provide access to their platforms to maintain competitive balance.
The approvals of the Zalando-About You merger and another between Thalia and Bücher.de were made without restrictions, indicating that the authorities found sufficient competition still exists within the market. Zalando is already established internationally, while About You, despite being smaller, has shown success in its niche. The market features other significant players like Amazon, ASOS, and H&M, which pose challenges for these companies.
Duso argued that such mergers can strengthen smaller companies against dominant global players. By combining resources, two smaller firms can create a more robust competitor in a market often led by giants like Amazon. The merger of Thalia and Bücher.de serves as another example, where both entities aimed to enhance their market presence in the face of powerful competition.
Reflecting on the influence of European regulatory bodies, Duso noted that the European Commission has been more proactive than its American counterparts in addressing the market power of tech giants. The introduction of the Digital Markets Act aims to regulate 'gatekeeper' companies, ensuring they do not abuse their dominant positions in the market.
While examining past mergers, Duso highlighted instances where regulatory authorities might reconsider their decisions in hindsight, particularly concerning Facebook's acquisitions of WhatsApp and Instagram. These acquisitions, initially approved, later drew criticism for eliminating potential competition.
Turning to the retail sector, Duso pointed out the rising concentration in the market over the past two decades. The controversial merger between Edeka and Tengelmann, which was initially blocked by the Federal Cartel Office, ultimately received approval from the then Minister of Economics, citing job security as a primary reason. This decision has significantly shaped the current retail landscape, with a few key players, such as Aldi and Rewe, controlling over 85% of the market.
Consumers have felt the impact of this concentration, especially as inflation has increased. While prices have risen, so have costs along the supply chain, leading to shifts in profit margins. The retail sector has managed to maintain a significant portion of profits, raising questions about the overall fairness of pricing strategies in a concentrated market.
Section: Arts
Section: Arts
Section: News
Section: Arts
Section: Arts
Section: Arts
Section: News
Section: Arts
Section: Business
Section: Arts
Health Insurance in Germany is compulsory and sometimes complicated, not to mention expensive. As an expat, you are required to navigate this landscape within weeks of arriving, so check our FAQ on PKV. For our guide on resources and access to agents who can give you a competitive quote, try our PKV Cost comparison tool.
Germany is famous for its medical expertise and extensive number of hospitals and clinics. See this comprehensive directory of hospitals and clinics across the country, complete with links to their websites, addresses, contact info, and specializations/services.
The couple Eva-Maria and Berthold Schneider has enthusiastically and expertly built an exquisite collection of Greek vases and other works of ancient small art over the years. Personal preferences often played a role in the acquisition of pieces. For instance, a rare oil vessel dating back to around...
No comments yet. Be the first to comment!