The German Federal Court of Justice confirms the prohibition of an energy merger considering that the German market for primary sales of electricity is dominated by a duopoly (E.ON / Stadtwerke Eschwege)

In a judgment of 11 November 2008, the German Federal Court of Justice (Bundesgerichtshof) (Federal Court) upheld a previous decision of the Higher Regional Court of Düsseldorf (Higher Regional Court) which had itself confirmed a decision of the Federal Cartel Office (FCO) blocking E.ON's plan to acquire a 33% share in the municipal utility Stadtwerke Eschwege (Eschwege) [1] . In 2003, the acquisition was prohibited because, according to the FCO, E.ON and RWE formed a dominant duopoly in the markets for the supply of electricity to regional/local retail suppliers and industrial or corporate customers. This duopoly would have been strengthened by E.ON's acquisition of a minority stake in the municipal utility Eschwege. The Higher Regional Court confirmed the FCO's view. This judgment

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Authors

  • Freshfields Bruckhaus Deringer (Berlin)
  • Freshfields Bruckhaus Deringer (Berlin)

Quotation

Frank Röhling, Bertrand Guerin, The German Federal Court of Justice confirms the prohibition of an energy merger considering that the German market for primary sales of electricity is dominated by a duopoly (E.ON / Stadtwerke Eschwege), 11 November 2008, e-Competitions Bulletin Energy & Mergers, Art. N° 24290

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