The German Federal Court of Justice issues a landmark decision addressing the issue of “Wedding Rebates” demanded by undertakings with relative market power (EDEKA)

The German Federal Court of Justice (BGH) had to assess the outcome of price negotiations between a powerful German food retailer (Edeka) and some of its suppliers. Edeka had just taken over a no-frills competitor (“Plus”) with more than 2000 outlets and was in the process of rebranding these shops with its own shop-brand (“Netto”) used in the lower end of the market. When undertakings of the same or a similar sector merge, they tend to compare their respective supply conditions and demand the more favourable version of the conditions for the whole (newly merged) group (“Bestwertabgleich”; adjustment to establish the best value). Thus, Edeka approached four companies supplying sparkling wine to Edeka as well as its newly acquired chain “Plus” and demanded a renegotiation of supply conditions

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Florian Becker, The German Federal Court of Justice issues a landmark decision addressing the issue of “Wedding Rebates” demanded by undertakings with relative market power (EDEKA), 23 January 2018, e-Competitions Buyer power in agreements and abuse of market power, Art. N° 86432

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