On April, 27th an ‘early bird’ focusing on ‘The new Competition Law’ took place in the Binder Grösswang offices in Vienna.
The 2017 Amendment of the Austrian Cartel and Competition Acts has recently been approved by Austrian parliament. Whereas in parts it enters into force on May, 1st 2017, some aspects will apply retroactively as of the end of 2016. Aiming at facilitating the compensation for cartel damages, the new provisions contain revolutionary changes in tort and civil procedure law, e.g. a presumption that cartels cause damages, disclosure of evidence in the hands of the parties, third parties as well as authorities, a prohibition to destroy or make evidence inaccessible.
It is expected that the amount of cartel damages suits in Austria will continue to rise steeply. Furthermore, the amendment not only attends to cartel damages, but make changes in different areas to – e.g. a new merger control threshold that not only takes into account the turnovers made by the undertakings concerned, but also the value of the transaction. Thus, also the acquisition of enterprises of the internet economy that still do not generate very high turnovers or any turnover at all shall be included in the merger review process. Austria positions itself as a leader in the control of internet mergers, even if there are some essential doubts in the application of the new provision.
This new legislation poses a line of questions and will force undertakings and authorities alike to take difficult decisions. This also involves implementing the necessary compliance measures.
Speakers:
Raoul Hoffer, Partner
Christine Dietz, Partner