Together with the European Circle for Competition Damages, we cordially invite you to our conference!

„𝐓𝐡𝐞 𝐏𝐚𝐬𝐬 -𝐎𝐧 𝐃𝐞𝐟𝐞𝐧𝐬𝐞 𝐢𝐧 𝐂𝐚𝐫𝐭𝐞𝐥 𝐃𝐚𝐦𝐚𝐠𝐞 𝐋𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧: 𝐑𝐞𝐜𝐨𝐧𝐜𝐢𝐥𝐢𝐧𝐠 𝐋𝐚𝐰 𝐚𝐧𝐝 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬".

Date: November 7th, 2025, 12:00 – 17:00 CET.

Event Venue: Living Hotel de Medici – Düsseldorf.

Programm [pdf]

Contakt & Registration: 📨 sahin@dus-competition.de

In the current issue of Wirtschaft und Wettbewerb (WuW), DCE partner Ulrich Heimeshoff analyzes the economic fundamentals and practical implications of damages caused by the abuse of a dominant market position.

While antitrust damages have been intensively researched and analyzed in case law and economics for years, the analysis of abusive market power has received comparatively little attention to date. Yet the potential for damage caused by the abuse of market power is often even greater than that caused by cartels: a company that dominates a single market can act independently and deliberately hinder competition or exploit customers – without having to rely on agreements with other market participants.

Particularly in regulated network industries such as postal services, telecommunications, or energy, it is evident that market supervision does not necessarily prevent abusive behavior. Heimeshoff therefore advocates a legal presumption of damage even in cases of abuse of a dominant market position, analogous to the provision in Section 33a (2) GWB for antitrust cases.

Methodologically, it is shown that classical econometric methods for determining cartel damages are only transferable to a limited extent. While regression and comparison models can be used for exploitative abuse, obstructive abuse generally requires descriptive or model-based approaches in order to realistically depict the hypothetical competitive situation.

The article thus makes an important contribution to the economic and legal discussion on the quantification of damages caused by abuse of market power and underscores the relevance of effective private enforcement in competition law.

Coppik J. and U. Heimeshoff, Damage caused by abuse of a dominant position in a single market, WuW 2025, 529–538.

In the recently published handbook “Glücksspielregulierung” (Mohr Siebeck. Published by Julian Krüper und Sebastian Unger), renowned experts examine the legal, economic, and social aspects of German gambling law. Topics covered include historical developments, player protection issues, and the regulation of individual forms of gambling—from constitutional and European law to civil and criminal law.

DCE Director Justus Haucap contributes a chapter on the economics of gambling. In it, he analyzes how successful legislators have been in curbing the black market in order to protect players and steer the industry into legal channels.

The topic of gambling and its regulation has been one of Düsseldorf Competition Economics' main areas of research for many years. Our team publishes regularly on these issues and contributes its expertise to the economic policy debate.

DCE expert opinion on gambling regulation:

Fritz , D., J. Haucap, P. Schweinsberg and S. Thorwarth (2025), Relevanz der Geldspielgeräte in der Gastronomie für die Kanalisierungsquote des gewerblichen Automatenspiels. A study commissioned by VDAI Verlags- und Veranstaltungsgesellschaft mbH

Fritz, D., J. Haucap und S. Thorwarth (2023), Entwicklung der Kanalisierungsquote des gewerblichen Automatenspiels in Deutschland. A study commissioned by VDAI Verlags- und Veranstaltungsgesellschaft mbH

Düsseldorf Competition Economics is delighted to have received two outstanding honors in the Lexology Index 2025 (formerly Who's Who Legal). Both Director Justus Haucap and Managing Director Susanne Thorwarth were honored this year.

Justus Haucap received recognition as a Global Elite Thought Leader. This award is only given to leading experts worldwide who have made a significant impact on their field through scientific excellence, international visibility, and sustainable initiatives. Haucap thus belongs to an exclusive circle of economists who are considered particularly influential worldwide.

Susanne Thorwarth was honored as a Future Leader . With this award, Lexology recognizes her outstanding consulting expertise and her growing importance on an international level. The category highlights experts who, thanks to their expertise and commitment, are among the leading minds of the next generation.

This double award shows that Düsseldorf Competition Economics stands for the highest level of expertise and international recognition in competition economics, both today and in the future.

Translated with DeepL.com (free version)

Together with the European Circle for Competition Damages, we warmly invite you to this year’s conference:

"The Pass-On Defense in Cartel Damage Litigation: Reconciling Law and Economics".

7. November 2025, 12:00 - 17:00 CET
Living Hotel de Medici - Düsseldorf, Germany

We are bringing together leading experts from law and economics to discuss the open questions surrounding the pass-on issue.
Details on the program will be announced shortly.

Registration ist already open: sahin@dus-competition.de

As part of competition law proceedings in Latvia, DCE prepared an economic expert opinion on the question of a dominant market position in freight transport. The team - Justus Haucap, Christiane Kehder, Niklas Gösser, Peter Schweinsberg and Salem Saljanin - focussed on the relevant market definition.

The competition authority had defined the market as strictly national - despite the high proportion of cross-border transit traffic and existing substitution possibilities via alternative transport corridors. Our analysis showed that the underlying market definition was methodologically unsound.

As a result, the court cancelled a substantial fine and took up the central arguments of the expert opinion. We would like to thank our client for their trust and Dr Lauris Rasnacs and the Kanzlei RASNAČS for their excellent cooperation.

On behalf of VDAI Verlags- und Veranstaltungsgesellschaft mbH, Daniel Fritz, Justus Haucap, Peter Schweinsberg and Susanne Thorwarth published a new study on the role of gaming machines in catering establishments in March 2025. The analysis shows that a further restriction - such as a reduction to just one machine per establishment or a complete ban - would massively fuel the illegal use of gambling services.

The share of the black market in commercial machine gaming is already estimated at 38 to 55 per cent. According to the study, a reduction to one device would cause the black market to grow to up to 67 per cent by 2026. A complete ban could even push it up to 71 per cent.
The authors emphasise that the existing regulatory measures are already insufficient to steer the demand for gaming machines in a legal direction. Further tightening would clearly run counter to the statutory channelling objective.

Fritz , D., J. Haucap, P. Schweinsberg and S. Thorwarth (2025), Relevance of gaming machines in the hospitality industry for the canalisation rate of commercial machine gaming.

A study commissioned by VDAI Verlags- und Veranstaltungsgesellschaft mbH

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A new article provides a comprehensive overview of the treatment of resale price maintenance (RPM) in European competition law. In their article (published in e-competition), Daniel Fritz, Salem Saljanin and Christian Wey analyse current developments at European and national level and show that the practice of resale price maintenance in the EU continues to be classified as particularly harmful to competition. Over the past ten years, national authorities and the European Commission have increasingly initiated proceedings against RPM. There is broad agreement among the European competition institutions that RPM is generally considered to be a restriction of competition by object - a more extensive impact analysis is therefore usually unnecessary.

However, a recent judgement by the European Court of Justice in the ‘Super Bock’ case calls this view into question. The ECJ clarifies that price maintenance is not automatically deemed to be a restriction of competition by object. Rather, there must be demonstrable harm to competition. Positive economic effects must also be taken into account in the assessment.

The judgement thus increases the requirements for the assessment of RPM under competition law. It remains to be seen whether this will lead to a convergence with US practice, where RPM has been assessed on a case-by-case basis since the Leegin judgement in 2007.

Fritz, D., S. Saljanin und C. Wey (2025), EU Resale Price Maintenance: An Overview of EU and National Case Law, e-Competitions EU Resale Price Maintenance, Art. N° 121710

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A current analysis by Salem Saljanin examines the economic weaknesses of the prevailing interest rate regulations for cartel damage compensation in Germany. In the publication "Interest Rates on Cartel Damage Compensation Payments in Germany – An Economic Perspective and Reform Proposals," Saljanin concludes that the current legal practice is neither economically appropriate nor sufficiently deterrent.

Cartel violations frequently cause considerable economic damage, the legal processing of which can drag on for many years. During this time, affected companies lose not only the actual damage but also substantial interest payments. The prevailing regulations (§33a GWB, §§288/289 BGB) particularly fail to consider compound interest – a central point that, according to Saljanin, leads to systematic undercompensation.

The author proposes calculating future interest payments using the compound interest method in order to more realistically reflect the actual economic loss. Furthermore, he advocates for more flexibility in interest rate determination: plaintiffs should – with appropriate economic proof – be given the opportunity to claim interest rates exceeding the statutory interest rate.

Saljanin, S. (2024), Verzinsung von Kartellschadensersatzahlungen in Deutschland – eine ökonomische Perspektive und Reformvorschläge, DICE Ordnungspolitische Perspektiven Nr. 118.

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In a recent expert opinion, Salem Saljanin and Christian Wey analyse the competitive impact of a planned merger between the New Zealand trading companies Foodstuffs North Island (FSNI) and Foodstuffs South Island (FSSI). The study focuses in particular on the upstream markets, i.e. the procurement side of the food retail trade. The report comes to the conclusion that the merger can have an overall pro-competitive effect. The companies operate in geographically separate regions of New Zealand and pursue comparable business strategies. This would neither restrict nor distort competition in the retail sector.

There could be positive effects for consumers in particular: The merger could lead to purchasing advantages and lower prices. Competitors such as Woolworths could also come under pressure to lower their prices, which would further stimulate competition.
The authors also see no negative consequences on the supplier side - the so-called upstream market. As both companies operate as full-range suppliers, they continue to rely on a wide range of suppliers and are not in direct competition with each other.

Saljanin, S. und C. Wey (2025), Merger of Foodstuffs North Island (“FSNI”) and Foodstuffs South Island (“FSSI”), Expert opinion on likely competitive effects with a focus on the upstream markets (i.e., grocery acquisition).

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The Federal Competition Authority (Bundeskartellamt) has approved the intended merger of Konsumgenossenschaft Leipzig eG, Leipzig, into EDEKA Nordbayern-Sachsen-Thüringen eG, Rottendorf, and thus into the EDEKA group. Düsseldorf Competition Economics supported EDEKA Nordbayern-Sachsen-Thüringen in this exciting project with competition economic arguments and prepared a competitive assessment of the regional markets.

This is the first time ever that the Cartel Office has considered and examined the entry of an independent retailer into the EDEKA group as a merger subject to control. Even after a very intensive examination, the Cartel Office did not consider the conditions for prohibiting the project to be met.

Press Release of Bundeskartellamt

In its annual "2024 Economic Report of the President", the White House refers to a paper by our Director Justus Haucap (together with Christian Wey).
The paper "Unionisation Structures and Innovation Incentives" (Haucap, J. & Wey, C. (2004), The Economic Journal, Volume 114, Issue 494, March 2004, Pages C149-C165) shows how labour market policy can promote innovation through the decentralization of union structures or through non-discrimination rules.

Abstract
This paper examines how different unionisation structures affect firms’ innovation incentives and industry employment. We distinguish three modes of unionisation with increasing degree of centralisation: (1) ‘decentralisation’ where wages are determined independently at the firm‐level, (2) ‘coordination’ where one industry union sets individual wages for all firms and (3) ‘centralisation’ where an industry union sets a uniform wage rate for all firms. While firms’ investment incentives are largest under ‘centralisation’, investment incentives are non‐monotone in the degree of centralisation: ‘decentralisation’ carries higher investment incentives than ‘coordination’. Labour market policy can spur innovation by decentralising unionisation structures or through non‐discrimination rules.

The study "Bureaucracy and its Consequences for the German Cconomy" by Justus Haucap, Christiane Kehder and Ina Loebert, commissioned by the Initiative Neue Soziale Marktwirtschaft (INSM), sheds light on the growing burden of bureaucracy in Germany - and the resulting consequences for companies' competitiveness, willingness to invest and innovative strength.
According to the authors, bureaucracy is not negative per se. In a functioning constitutional state, it is indispensable for planning and legal certainty as well as for combating arbitrariness. However, an excess of regulation and administrative burden is now jeopardising key economic objectives.
The study shows that a lack of incentives to reduce bureaucracy, political overregulation and inadequate digitalisation of administration have become a structural problem. Particularly critical: bureaucracy crowds out investment, exacerbates the shortage of skilled labour, makes innovation more difficult - and, in the worst case, leads to research-intensive companies moving abroad.

In order to curb increasing bureaucratisation, the study proposes, among other things, the introduction of a cost reimbursement obligation for information duties, mandatory administrative benchmarking, the expansion of digital administration and greater use of ‘sunset legislation’ - i.e. the automatic expiry of regulations unless they are actively extended.

Haucap, J., C. Kehder und I. Loebert (2024), Bürokratie und ihre Folgen für die Wirtschaft in Deutschland, Februar 2024. A study on behalf of Initiative Neue Soziale Marktwirtschaft (INSM)

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Justus Haucap presented and discussed our study commissioned by the INSM Bürokratie und ihre Folgen für die Wirtschaft in Deutschland at a panel discussion of the Initiative Neue Soziale Marktwirtschaft (INSM), which was also attended by Federal Minister of Justice Dr. Marco Buschmann.

Haucap emphasized that a market-based economic system requires a regulatory framework with clear rules. However, this framework must be efficient. Otherwise, the ability of companies to compete and grow would be threatened by reducing their opportunities to invest in research into new products and production processes as well as in the renewal and expansion of production capacities. This is particularly critical in light of digitalization and rising energy costs. In addition, excessive bureaucracy is exacerbating the labor shortage in companies.

To counteract the growth in bureaucracy and limit bureaucracy to the necessary minimum, the demands are therefore as follows:

💡 a cost reimbursement obligation for government information obligations for companies
💡 an obligation for regular administrative benchmarking, including the publication of results
💡 Digitization of the administrative apparatus

In addition, the possibility of sunset legislation - i.e. the establishment of expiry dates for regulations including the evaluation of regulation - should be given greater consideration than in the past. Reducing bureaucracy can strengthen companies, limit government spending on public administration and promote economic growth in Germany.

The functionality of the German auditing market is limited - and current regulatory measures such as the FISG or the CSRD could exacerbate this trend. This is the key finding of a study conducted by Justus Haucap, Christiane Kehder and Ina Loebert on behalf of Mazars.

The authors are particularly critical of the risk of further market concentration. The increasing ‘one-stop shop’ auditing - i.e. auditing of annual financial statements and sustainability reports by the same auditing body - threatens to squeeze out smaller and medium-sized auditing firms.
The study therefore argues in favour of a new market design based on mandatory joint audits - i.e. audits of financial statements by two independent audit firms. This double quality control (‘four-eyes principle’) can improve both audit quality and reputation building for non-big-four companies.
Key points of the proposed Choice & Quality Framework:

• Mandatory joint audits with a balanced distribution of responsibilities,
• competition-compliant liability rules,
• integration of sustainability reporting (CSRD),
• adaptation of international auditing standards,
• more market transparency.

The goal: a fairer, more diverse market with reliable audit quality that serves both the public interest and competitive dynamics.

Haucap, J., C. Kehder und I. Loebert (2024), Reformoptionen für die Wirtschaftsprüfung, Januar 2024. A Study on behalf of Mazars GmbH & Co. KG.

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Düsseldorf Competition Economics is one of the TOP 10 most recommended consultancies for competition economics according to an evaluation by the law magazine Juve. More than 300 recommendations from law firms and lawyers were taken into account. In particular, they praised the competence of the back office, which is fed by "ever new bright minds".
DCE is represented twice in the people ranking: Our partner Prof. Dr. Justus Haucap is ranked 10th, Managing Director Dr. Susanne Thorwarth 13th.

A study conducted by Düsseldorf Competition Economics on behalf of the German Brands Association shows: The planned Children's Food Advertising Act (KLWG) not only misses its health policy target - it also harbours serious economic risks for Germany as a media and business location.

Key findings:
Billions lost in the advertising market: the law could lead to a decline in advertising revenue of between 2 and 3 billion euros - equivalent to almost eight per cent of the total gross advertising market in 2022.
Weakening of private broadcasting: Private media would lose a key source of income, while public broadcasters would hardly be affected. This jeopardises media diversity and pluralism of opinion in the dual broadcasting system.
Threat to creative value chains: Not only broadcasters, but also advertising agencies, production companies, photographers, directors and other service providers would suffer massive losses - the heavily advertising-dependent food industry would be particularly hard hit.
Less innovation, more market power: Advertising is central to the introduction of new products. An advertising ban reduces incentives for innovation and makes it more difficult for new providers to enter the market. Existing market structures would be cemented and competition weakened.

Conclusion
The law may be well-intentioned, but it mainly affects media companies, the creative industries and innovative food companies. The hoped-for health benefits for children remain questionable.

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On behalf of the Federal Network Agency, Düsseldorf Competition Economics (DCE) and Büro für Energiewirtschaft und technische Planung (BET) have presented an expert opinion on the gas storage management strategies of Trading Hub Europe GmbH (THE). THE was commissioned in 2022 to fill the German gas storage facilities as part of the security of supply. The report concludes that THE only had limited room for manoeuvre in terms of gas procurement at the start of filling the storage facilities, as not all marketing options were available. This led to comparatively high procurement costs.

At the same time, the report shows that THE did not influence gas market prices in a way that was unusual for the market. It is true that additional demand in a tight market generally drives up prices. However, the sharp rise in gas prices in summer 2022 was not solely due to THE's behaviour, but rather to the Europe-wide build-up of storage while Russian gas supplies declined.

Edel, P., J. Haucap, T. Heimann, A. Kox und M. Ritzau (2023), Strategien für die Bewirtschaftung von Gasspeichern durch Trading Hub Europe, A Study on behalf of Bundesnetzagentur, Juni 2023.

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On behalf of VDAI Verlags- und Veranstaltungsgesellschaft mbH, Justus Haucap, Daniel Fritz, and Susanne Thorwarth examined the development of the channeling rate in commercial slot machines in Germany. The channeling rate measures the share of legal demand in relation to total demand and is a key criterion for the effectiveness of gambling policy measures.

The study shows that the channeling rate reached a historic high of 96 percent in 2012. However, subsequent regulatory tightening under the 2012 State Treaty on Gambling and the 2014 amendments to the Gaming Ordinance led to a sharp decline in legal market shares. By 2022, the channeling rate had fallen to just 54 to 70 percent—a significant portion of demand is now met by the illegal black market.

The authors warn that, without regulatory changes, the channeling rate could drop further to just 38 to 55 percent by 2026. The current legal framework is inadequate to achieve the channeling target set by the State Treaty. There is an urgent need for political action to make legal offerings more attractive again and effectively combat the black market.

Fritz, D., J. Haucap, and S. Thorwarth (2023), Entwicklung der Kanalisierungsquote des gewerblichen Automatenspiels in Deutschland [Development of the Channeling Rate in Commercial Gaming Machines in Germany], Study on behalf of VDAI Verlags- und Veranstaltungsgesellschaft mbH, March 2023.

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The so-called energy price brake was intended to provide relief for consumers and companies in the energy crisis. The measure provides for the state to cover part of the energy costs - depending on the contractually agreed energy price per unit. However, a study by Moritz Dertwinkel-Kalt and Christian Wey published in the RAND Journal of Economics shows that this design creates false incentives for energy suppliers to charge artificially higher prices, as this also increases state subsidies. This creates a so-called moral hazard.

The negative consequences:

• Rising energy prices due to strategic behaviour by suppliers,
• higher state expenditure for the price brake.

However, the measure also has a positive side effect: higher prices despite subsidies mean that the incentive to save energy remains in place or is even strengthened.
According to the authors, whether consumers or companies ultimately benefit depends on the structure of the respective energy market.

Dertwinkel-Kalt, M. and C. Wey (2025), Why ‘Energy Price Brakes’ Encourage Moral Hazard, Raise Energy Prices, and Reinforce Energy Savings, RAND Journal of Economics Vol. 56 (2)

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In celebration of our tenth anniversary, we have decided to rename DICE Consult GmbH. As of 31 March 2023, we officially have the company name Düsseldorf Competition Economics GmbH.

Why a new name? Ten years ago, we started as a small spin-off from the Düsseldorf Institute for Competition Economics (DICE) of the Heinrich Heine University Düsseldorf. The idea was to help our clients understand and solve competition problems. We are proud of the fact that we have developed into a nationally and internationally established consulting firm in this segment. Competently and in partnership, we advise companies, government agencies and organisations in all matters of competition and regulatory policy, carry out cartel damage calculations or act as advisors to our clients in competition law proceedings.

Our 10th anniversary now serves as an occasion to take this development to the next step. With our new name as Düsseldorf Competition Economics GmbH, we emphasise our self-image as an independent consulting firm and highlight our competences within the scope of our consulting activities. The name will help us to develop further and strengthen our competitiveness. We are proud of what we have achieved in the last ten years. We are ready for the challenges and opportunities that await us in the future.

At the annual symposium of the Research Institute for Economic Constitution and Competition (Forschungsinstitut für Wirtschaftsverfassung und Wettbewerb e.V.), our partner Prof. Dr. Justus Haucap is invited as one of the keynote speakers and will speak on the topic "Challenges for competition policy in the next 10 years: Digital markets, sustainability and labour markets!"

In addition to Haucap, the President of the Federal Cartel Office Andreas Mundt or the Chairman of the Monopolies Commission Jürgen Kühling will speak. The event will take place from 22 to 24 February 2023 in Innsbruck.

According to "Who is Who Legal" our Director Prof. Dr. Justus Haucap is once again one of the leading experts in the field of "Competition". He is a great economist and consultant with an impressive backround.

Who's Who Legal identifies the world's leading lawyers and advisors in various areas of business law.

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In its issue of May 13, 2022, the Frankfurter Allgemeine Zeitung reports on a Düsseldorf Competition Economics (former DICE Consult) report on concentration in the auditing market, which was commissioned by the auditing company Mazars. The study concludes that the market for statutory audits of companies' financial statements suffers from high concentration. In Germany in particular, the four major auditors PWC, KPMG, EY and Deloitte dominate the business. "Functional deficits hinder competition, impair audit quality and endanger the stability of financial markets" warns our partner and author Prof. Dr. Justus Haucap.

The study ‘Functional deficits in the auditing market’ was presented to the public on 12 May 2022 as part of a panel discussion organised by the client and discussed with Prof. Dr Justus Haucap (DICE), Dr Christoph Regierer (Mazars), Katharina Beck MdB (Bündnis 90/Die Grünen), Fritz Güntzler MdB (CDU), Prof. Dr Heribert Hirte (Bürgerbewegung Finanzwende e. V.) and Evelyne Freitag (supervisory board member and financial expert).

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A recent study commissioned by Mazars GmbH & Co. KG reveals significant functional deficiencies in the German statutory audit market, particularly in the segment of public interest entities. The analysis highlights that high market concentration and existing barriers to entry hinder effective competition. This impairs audit quality and poses risks to financial market stability, as well as to investment and economic growth.

The study emphasizes that these problems will not resolve themselves and that a comprehensive adjustment of market design is urgently needed. Policymakers recognized this in the 2021 coalition agreement and pledged to limit the dominance of a few large audit firms. At the EU level, a consultation on reforming audit regulation has also initiated the reform process.

Various reform options are being discussed, including the introduction of joint audits based on the four-eyes principle, state-appointed auditors, market share caps, and competition-sensitive award criteria for public audit mandates. The goal is to promote market diversity, improve the quality of financial audits, and thereby safeguard the stability of the financial system.

Kehder, C., J. Haucap, and M. Prüfer (2022), Funktionsdefizite auf dem Wirtschaftsprüfungsmarkt [Functional Deficiencies in the Statutory Audit Market], Study commissioned by Mazars GmbH & Co. KG.

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Düsseldorf Competition Economics Prof. Dr. Hans-Theo Normann and Economist Dr. Olivia Bodnar (together with Melinda Fremerey (IW Cologne) and Jannika Schad (Uni Siegen)) have won the Concurrences Antitrust Writing Award 2022 in the category Academic Article/ Private Enforcement!

The award was given for the article "The effects of private damage claims on cartel activity: Experimental evidence," which appeared in the prestigious Journal of Law, Economics, and Organization. The article addresses the effects of private damage claims against cartels on leniency.

The Antitrust Writing Award is presented once a year by Concurrences Review and the George Washington University Law School Competition Law Center and recognizes the best articles of the year in the areas of antitrust and mergers.

Antitrust damage claims proceedings frequently involve conflicting economic expert opinions from the involved parties. While defendant companies' expert reports typically find no evidence of harm, plaintiffs' experts regularly demonstrate substantial damages. This presents courts with the challenge of thoroughly evaluating complex economic analyses - particularly following landmark decisions by the German Federal Court of Justice (BGH) in cases like the rail and truck cartels.

In their article published in the Journal of Competition Law (Zeitschrift für Wettbewerbsrecht), Justus Haucap and Ulrich Heimeshoff provide practical guidance for assessing these expert reports. The authors address key methodological challenges in quantifying antitrust damages and present options for preliminary damage estimates. Their analysis also examines the role of court-appointed experts. Particularly noteworthy is the authors' original proposal for an institutionalized framework that would enable courts to efficiently assess potential damage amounts. This guidance tool could make damage quantification processes more transparent and workable in practice.

Haucap, J. and U. Heimeshoff (2022). Quantifying Antitrust Damages Between Precision and Efficiency: Fundamental Economic Requirements and Practical Implementation Options. Journal of Competition Law, 20(1), 80-103.

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Our Director Prof. Dr. Justus Haucap was nominated for the Concurrences Antitrust Writing Award 2022 (together with Christina Heldmann (Uni Düsseldorf) and Prof. Dr. Holger Rau (Uni Göttingen)) with the paper "Gender and Collusion".

With the Antitrust Writing Award, a jury honors the best antitrust writings published in the past year with the aim of promoting competition science and contributing to the promotion of competition. The jury is composed of leading antitrust experts, academics and lawyers. Voting will run until March 25, 2022.

Our Director Prof. Dr. Justus Haucap was a participant in the sixth meeting of the Competition Economics Working Group initiated by the German Federal Cartel Office. At this meeting, staff members of the Bundeskartellamt discuss current competition economics issues with scientists. This year's meeting focused on competition in the electricity first sales market and in the furniture retail sector.

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In the economist ranking of the Frankfurter Allgemeine Zeitung (F.A.Z.), Prof. Dr. Justus Haucap is ranked 18th and is thus among the top 20 influential economic advisors. Compared to the previous year, the Düsseldorf Competition Economics Director has moved up three places. Haucap scores particularly well in the field of politics and is frequently named as a particularly influential advisor by politicians and ministry employees in a survey conducted specifically for the ranking.

The F.A.Z. ranking is published once a year and takes into account influence in media, politics, social media and science. It is produced in cooperation with the media research institute Unicepta, the association for scientific policy advice Econwatch, the ZBW - Leibniz Information Center for Economics, the scientific publisher Elsevier and DICE.

To the Ranking

Since July 1, 2021, the cartel damages trial in the log cartel has been heard at the Stuttgart Regional Court. In one of the largest lawsuits of its kind to date, dozens of sawmills are suing not only the state of Baden-Württemberg but also other federal states. In the lawsuit against the federal state of Hesse, Düsseldorf Competition Economics has taken over the calculation of the amount of damages.

The case was preceded by decades of practice whereby state authorities marketed logs and timber not only from state forests, but also from the forests of private forest owners. Sawmills were thus able to obtain their wood for further processing from only one source. In 2015, the Federal Cartel Office subsequently issued a stop-order against the state of Baden-Württemberg.

You can find more information about this case at Juve.

What about fairness and equality of opportunity in Germany as a trade fair location? The trade fair sector in Germany is special in an international comparison. Public trade fair companies in Germany not only operate the trade fair infrastructure, but as vertically integrated providers they also run their own trade fairs and thus compete with private trade fair organizers. The fact that this speciality - especially in view of the Corona Pandemic - leads to competitive problems and has a detrimental effect on the private trade fair companies is shown by a recent expert report by Düsseldorf Competition Economics (former DICE Consult) for the Fachverband Messen und Ausstellung e.V. [FAMA].

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According to "Who is Who Legal" our Director Prof. Dr. Justus Haucap is one of the leading experts in the field of "Competition". He is an outstanding economist who provides well-founded answers to many competition questions.

Who's Who Legal identifies the world's leading lawyers and consultants in various areas of business law.

The new book by Jürgen Coppik and Ulrich Heimeshoff ‘Cartel Damage Assessment in Practice - Economic Evidence on the Effectiveness of Cartels’ is dedicated to the complex issue of damage assessment in antitrust claims. For the first time, the authors offer a compact and interdisciplinary overview that combines law and economics and provides legal decision-makers as well as lawyers and experts with practical knowledge.
Cartel damages proceedings are often based on economic expert opinions that estimate how prices would have been without cartel agreements. Analysing these expert opinions is a major challenge for courts. The book provides a well-founded overview of current empirical studies on the effectiveness of cartels and explains how their results can be applied in individual cases in court.
In addition, the book provides practice-orientated concepts for the preparation and evaluation of economic damage assessments in order to enable well-founded and comprehensible court decisions. The book thus makes an important contribution to the professionalisation of cartel damage assessment.

Coppik, J. and Heimeshoff, U. (2021). Praxis der Kartellschadensermittlung – Ökonomische Evidenz zur Effektivität von Kartellen. Handelsblatt Fachmedien.

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The report by Justus Haucap, Daniel Fritz and Susanne Thorwarth, commissioned by the Trade Fairs and Exhibitions Association (FAMA), analyses the competitive situation in Germany as a trade fair location. Unlike in almost all other countries, public trade fair companies in Germany not only operate the trade fair infrastructure, but also run their own trade fairs - and are therefore in competition with private organisers.
As private trade fair organisers are dependent on access to the infrastructure of public companies, there is a risk of anti-competitive self-preferential treatment. This can be seen, for example, in the preferential allocation of time slots to their own trade fairs or the exclusive flow of information within the trade fair companies. In extreme cases, vertically integrated providers could even take over and organise a trade fair themselves, which would further distort competition.
The report concludes that genuine equality of opportunity is currently not guaranteed in Germany as a trade fair location. Among other things, it recommends the introduction of a binding ‘Code of Conduct’ for the trade fair industry in order to effectively prevent discrimination and self-favouritism.

Haucap, J., D. Fritz, S. Thorwarth (2021). Chancengleichheit am Messestandort Deutschland. Gutachten im Auftrag des Fachverbands Messen und Ausstellungen e.V. (FAMA).

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The article "Vertical relations, pass-through, and market definition: Evidence from grocery retailing by Justus Haucap, Ulrich Heimeshoff and Christian Wey (together with Gordon Klein and Dennis Rickert) has been nominated for the Concurrences Antitrust Writing Award 2021 in the category "Academic Articles". The article was published in the International Journal of Industrial Organization (January 21, Vol. 74). For Haucap, it would be the second consecutive award. Already last year his article [together with Joel Stiebale]) "How Mergers Affect Innovation: Theory and Evidence" ) was awarded the prize.

The "Antitrust Writing Award" is awarded once a year by Concurrences Review and the George Washington University Law School Competition Law Center and honors the best contributions of the year in the fields of antitrust and mergers.

In May 2019, the Federal Ministry for Economic Affairs and Energy launched a strategic forecasting process to examine the economic prospects of digitalisation for Germany and Europe. The ministry commissioned Düsseldorf Competition Economics (then DICE Consult), the VDI Technology Centre and Christoph Busch from the University of Osnabrück to develop future scenarios. The aim was to develop economic policy options for further developing the regulatory framework of the social market economy so that it can successfully shape the digital transformation.

The results of the study were presented on 18 June 2021 at a conference with Federal Minister of Economics Peter Altmaier.

Holtmannspötter, D., U. Heimeshoff, J. Haucap, I. Loebert, C. Busch and A. Hoffknecht (2021),
Soziale Marktwirtschaft in der digitalen Zukunft - Foresight-Kurzbericht. Strategic Foresight Process of the BMWi,
Published by VDI Technologiezentrum GmbH, Düsseldorf, on behalf of the Federal Ministry for Economic Affairs and Energy, June 2021.

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Will the new Postal Act create more competition in the mail market? A legal and economic expert opinion commissioned by the Bundesverband für Briefdienste [BDD] with the collaboration of our Director Prof. Dr. Justus Haucap says: Yes! The amendment to the Postal Act can prevent the ex-monopolist Deutsche Post AG (DPAG) from exploiting its market power and charging competitors excessive prices for the use of the group's own mail delivery network ("margin squeeze" (PKS)). DPAG is already required by law to deliver competitors' presorted letters via its delivery network. Under the new Postal Act, the Federal Network Agency can now carry out effective PKS charge monitoring. This means that an abuse of market power can be identified if the margin between the charge for an access service and the corresponding retail charge is not sufficient to enable an efficient company to achieve an appropriate margin.

More Information

Expertise "Zu der Auslegung der Missbrauchsvermutung „Preis-Kosten-Schere“ nach §20ABS.4 PostG und deren Anwendungsperspektiven in der Regulierungspraxis".

FAZ from 14. Juni 2021: Mehr Wettbewerb um Briefe

The experimental study The Effects of Private Damage Claims on Cartel Activity: Experimental Evidence examines how private damage claims influence the formation and stability of cartels. While leniency applicants enjoy full immunity from public fines, they often lack sufficient protection against private damage claims, which can contribute to the stabilisation of existing cartels. The results show that although private claims for damages reduce the formation of cartels, existing cartels become more stable as a result. Protecting leniency applicants from private damages claims can prevent this undesirable effect.

Bodnar, O., M. Fremerey, H.-T. Normann and J. Schad (2023), The Effects of Private Damage Claims on Cartel Activity: Experimental Evidence, The Journal of Law, Economics, and Organization, 39(1), 27-76.
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The platform economy is developing rapidly and is increasingly shaping business models, including in the B2B sector. A recent study by Justus Haucap, Christiane Kehder and Ina Loebert uses the example of North Rhine-Westphalia to analyse the potential for and obstacles to the development of digital B2B platforms. The study emphasises two key locational advantages: North Rhine-Westphalia has a strong industrial sector - including mechanical engineering, the chemical industry and steel and metal processing - and is also a major trade fair location with numerous international trade fairs. These factors offer ideal conditions for the development and establishment of B2B platforms.
In addition to identifying opportunities for growth, the study also formulates specific recommendations for action on how existing obstacles can be overcome and potential better utilised in order to strengthen North Rhine-Westphalia as a business location in the digital transformation.

Haucap, J., C. Kehder and I. Loebert (2021), B2B Platforms - Potentials, Obstacles and Options for Action Using the Example of North Rhine-Westphalia. Nomos publishing house.

To order the book

In an report on the Implementation of the "Energiewende" in Germany, the Federal Audit Office relies a study commissioned by the Initiative Neue Soziale Marktwirtschaft.

For the first time, the Düsseldorf Competition Economics study calculates the total costs of the energy transition in the area of electricity generation. According to this, the costs amounted to a total of around 520 billion Euros just in the period from 2000 to 2025.

Justus Haucap, Ulrich Heimeshoff and Niklas Gösser analyses the growing importance of price-cost squeeze tests in telecommunications markets. In view of increasing price differentiation and product bundling, which includes both regulated and unregulated wholesale services, the study systematically summarises the existing theories on predatory pricing as well as European and German case law. Building on this, the authors develop pragmatic proposals for adapting the test procedures in order to better recognise price-cost squeezes in individual tariffs and tariff bundles and thus protect competition more effectively.

Haucap, J., Heimeshoff, U. and Gösser, N. (2021) ), Preis-Kosten-Schere im Telekommunikationssektor. Nomos publishing house, March 2021.

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In the new podcast "Bei Anruf Wettbewerb", our Director Prof. Dr. Justus Haucap discusses and debates current cases and developments from the world of competition together with Prof. Dr. Rupprecht Podszun, Director of the Institute for Antitrust Law at Heinrich Heine University. In the first episode of "Bei Anruf Wettbewerb," the Düsseldorf professors explain why the 10th GWB amendment is a minor revolution, how the rules will work - and they give a hint as to which of the big Internet players the cartel office will choose as its first opponent.

Der Podcast is free to listen, for example at Spotify or anchor.fm/beiAnrufWettbewerb

The study The EU Digital Markets Act by Luís Cabral, Justus Haucap, Geoffrey Parker, Georgios Petropoulos, Tommaso Valletti and Marshall Van Alstyne analyses the European Commission's proposal for the Digital Markets Act (DMA). This is intended to supplement existing competition policy by imposing new ex-ante obligations on large gatekeeper platforms. The report is based on an independent economic assessment by a high-level panel of experts, which draws on existing economic research and evidence.

The experts support the basic idea of the DMA to identify large gatekeeper platforms and impose specific obligations on them. They emphasise the challenge of balancing the advantages of the network effects of large platforms against the possible negative consequences of anti-competitive behaviour and market-dominating effects. While classic competition law infringements are well known, data-driven, multi-sided platforms show new forms of tying, bundling and self-preferencing that pose particular challenges.
The report examines these behaviours, particularly in the areas of online advertising and mobile ecosystems. It also discusses how platforms can use collected data to promote competition and benefit society in order to achieve a fairer distribution of the social value created by large platforms. One challenge that remains is the information asymmetry between platforms and regulators, which makes it difficult to implement obligations effectively.

Cabral, L., J. Haucap, G. Parker, G. Petropoulos, T. Valletti and M. Van Alstyne (2021), The EU Digital Markets Act, Publications Office of the European Union, Luxembourg.

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The new State Treaty on the Reorganisation of Gambling (GlüStV 2021) will come into force on 1 July 2021. A study by Justus Haucap, Daniel Fritz and Susanne Thorwarth on behalf of the German Sports Betting Association (DSWV) and the German Online Casino Association (DOCV) analyses the proposed structure of gambling taxation. The GlüStV 2021 replaces the previous strict prohibition policy in the gambling sector and opens up the market for certain online games of chance, including virtual slot machines, online poker and online casino games such as roulette and blackjack, subject to strict regulations.

The report shows that the planned taxation has a decisive influence on achieving the objectives of the GlüStV 2021. In particular, it warns against a gaming tax of eight per cent, as this would greatly reduce the payout ratios and thus the attractiveness of legal offers. This would drive many players into the unregulated black market, which would prevent the important channelling towards legal providers.
Instead, the report recommends taxing the gross gaming revenue, ideally between 15 and 20 per cent. This form of taxation allows for a better balance between high tax revenue and an attractive legal gaming landscape. Due to the differences in operation and competition between lotteries, sports betting, virtual slot machines and online casino games, it is proposed that a gross gaming revenue tax be introduced for at least the latter three. A switch to this type of tax is also considered sensible for lotteries and sports betting. The study shows that only with such a tax structure can the objectives of the GlüStV 2021 - in particular channelling, youth and player protection and fiscal interests - be successfully implemented.

Haucap, J., D. Fritz and S. Thorwarth (2021), Zukünftige Glücksspielbesteuerung im Rahmen des Glücksspielneuregulierungsstaatsvertrags.. Expert opinion on behalf of the German Sports Betting Association (DSWV) and the German Online Casino Association (DOCV).

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The study by Marc Bataille, Olivia Bodnar, Alexander Steinmetz and Susanne Thorwarth sheds light on the particular challenges of analysing competition in the electricity generation markets, which have increasingly become the focus of attention since the liberalisation processes of the 1990s. Due to the special economic characteristics of electricity, it is difficult to analyse the intensity of competition here using traditional concentration measures such as market shares.
Against the backdrop of current developments - including merger proceedings such as the E.ON/RWE case, new guidelines on abuse control in electricity generation and the increasing scarcity of conventional generation capacities - the issue of measuring market power is once again gaining importance.
The authors present the Return on Withholding Capacity Index (RWC), a recently developed index that offers an extended methodology for determining market power in power generation and is tailored to the specific challenges of the market.

Bataille, M., O. Bodnar, A. Steinmetz and S. Thorwarth (2021). Measuring competitive conditions in power generation - The Return on Withholding Capacity Index (RWC). Economy and Competition, 71(1), 25-29.

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Whether it's trade in chemical goods or logistics services, North Rhine-Westphalia is a pioneer in the field of so-called B2B platforms - digital marketplaces where goods, services or information are traded between companies. North Rhine-Westphalia's two locational advantages are its strong industrial sector and its many international trade fairs. These are the key findings of a study by Düsseldorf Competition Economics, which was commissioned by the Ministry of Economic Affairs, Innovation, Digitalization and Energy of the State of North Rhine-Westphalia and presented at a digital event on December 16.

To the Recording of the Event

Key findings are:

• B2B platforms differ from B2C platforms that address end customers: In particular, B2B platforms are often highly specialized. In addition, the trust of companies towards the platform plays a much greater role in - B2B business than in B2C.
• The following industries are particularly promising for establishing successful B2B platforms in North Rhine-Westphalia: manufacturing (mechanical engineering, chemical industry, steel/metal production/processing), furniture industry, logistics, retail, healthcare, waste disposal industry.
• A greater awareness of the potential of B2B platforms should be created, especially among smaller and medium-sized companies. It is a good idea for several companies to set up a platform together.
• It is advised to bring trade fair companies more closely together with platform founders and innovative start-ups.
• The study also addresses the regulatory framework that will be significantly changed for the platform economy at the federal level with the 10th amendment of the GWB Digitization Act and at the EU level with the Digital Services Act and the Digital Market Act. It is expected that these adjustments will have a positive impact on the development of B2B platforms.

To the press release of the Ministry of Economic Affairs

The study ‘Vertical Relations, Pass-through, and Market Definition: Evidence from Grocery Retailing’ by Justus Haucap, Ulrich Heimeshoff, Gordon Klein, Dennis Rickert and Christian Wey analyses the influence of different pass-through rates from input to retail prices and vertical contract forms on the definition of upstream markets. Theoretical considerations suggest that vertical restrictions - such as resale price maintenance - result in higher pass-through rates and thus lead to a broader market definition than linear wholesale prices.
Empirically, the authors analyse data from the food retail sector and confirm that resale price maintenance leads to greater upstream market definition than linear pricing. Against this background, it is recommended that competition authorities should carefully model vertical market structures, especially when incomplete price pass-through is relevant.

Haucap, J., U. Heimeshoff, G. Klein, D. Rickert and C. Wey. (2020). Vertical Relations, Pass-through, and Market Definition: Evidence from Grocery Retailing. International Journal of Industrial Organisation, 74, 102693.

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Our Partner Prof. Dr. Christian Wey was appointed by the German Federal Association of Health Insurance Funds (GKV) as an impartial member of the Arbitration Board for Digital Health Applications (according to § 134 Abs. 3 SGB V).
The Arbitration Board is formed by the GKV-Spitzenverband and representatives of the manufacturers of digital health applications. It is responsible for determining the remuneration amounts that providers of digital health applications receive from the statutory health insurance funds.

The article "How Mergers Affect Innovation: Theory and Evidence") by (together with Prof. Dr. Alexander Rasch and Prof. Dr. Joel Stiebale) was awarded with the Antitrust Writing Award. The article analyses how horizontal mergers affect innovation of the merged entity and its non-merging competitors. Using data on horizontal mergers among pharmaceutical firms in Europe and applying propensity score matching estimators, it can be shown, that average patenting and R&D of the merged entity and its rivals declines substantially in post-merger periods.

Der Antitrust Writing Award is presented once a year by Concurrences Review and George Washington University Law School Competition Law Center and honors the best article of the year in the fields antitrust and mergers.

According to the Frankfurter Allgemeine Zeitung (F.A.Z.), our partner Prof. Dr. Justus Haucap is one of the top 30 most influential economists in Germany. In the total ranking, Haucap holds 21st place. Haucap is a popular advisor, especially in ministries and among members of the Bundestag. This is shown by the political survey, according to which Haucap is among the top ten most influential economic advisors.

The F.A.Z. economists' ranking takes into account the influence in media, politics, social media and science. It is developed in cooperation with the media research institute Unicepta, the association for scientific political consulting Econwatch, the ZBW - Leibniz Information Center for Economics, the scientific publisher Elsevier and the DICE.

To the Ranking

Digitization creates new business models, new products and new markets. But the digital economy also creates new challenges. Platforms collect data and create monopolies or companies take over small competitors to secure their own market power. Our Partner Prof. Dr. Justus Haucap gave a lecture on these and other issues of digitisation at the ACATIS Value Conferenz.

To the lecture at Yotube

The Bundeskartellamt has cleared the takeover of Kiel-based Vossloh Locomotives GmbH by CRRC Zhuzhou Locomotives Co.

In light of Vossloh's strong market position in Europe on the one hand and CRRC's as yet very weak position in the European market on the other, the question of how the involvement of Chinese state-owned companies is to be assessed under merger control had to be clarified in particular. According to the President of the Bundeskartellamt, Andreas Mundt, "it could be ruled out that the takeover would lead to a significant impairment of competition in the market for shunting locomotives in Europe.

Under the direction of Prof. Dr. Justus Haucap and Prof. Dr. Christian Wey, Düsseldorf Competition Economics provided CRRC with competition economics expertise in the merger project.

The Oberlandesgericht Düsseldorf dismissed Remondis' protest against the prohibition of the merger with Duales System Deutschland (DSD) by the Bundeskartellamt. The court confirmed the Bundeskartellamt's decision according to which the merger would have created a dominant position in the marketing of glass cullet and Remondis would have exploited its market power created by the acquisition.

Under the leadership of our Partner Prof. Dr. Justus Haucap, Düsseldorf Competition Economics (formerly DICE Consult) has supported the Bundesverband Sekundärstoffe und Entsorgung (BVSE) in the proceedings against the merger project with its expertise in competition economics.

The article "Data Protection and Antitrust: New Types of Abuse Cases? An Economist’s View in Light of the German Facebook Decision" by our Partner Prof. Dr. Justus Haucap was published as a Highlight in the Book "The Digital Economy – 2019 Highlights Special Edition".

Many services on the Internet are seemingly offered for free. People do not have to pay for them, at least not with money. The article argues that it is rather difficult to conceive what use of data would constitute an exploitative abuse of market power in these markets – the issue which has been at heart of the German investigation into Facebook’s data combination practices. In particular, the question emerges as to what the appropriate benchmark for exploitative data abuse cases should be. Requiring dominant firms to behave more like competitive firms would be rather absurd if small firms without market power violate privacy standards more often than larger firms. Moreover, if users are not aware of what kind of data is collected and how this data is used due to a lack of transparency, as has been suggested in the German Facebook case, this appears to be, by and large, a problem of asymmetric information which is not necessarily related to market power. Overall, portraying excessive data usage as being analogous to excessive pricing is fraught with several difficulties. In contrast, it is easier to conceive that not granting third-party access to data may be an obstructive abuse of market power.

Thyssenkrupp AG plans to sell its entire elevator segment. Kone Corporation, a major player in the elevator and escalator industry (“E&E industry”), has publicly signalled its interest in an acquisition. The Company further signalled that in case of a successful bid it would divest the complete European elevator business of Thyssenkrupp to the private equity firm CVC for antitrust reasons. Several other buyout groups compete with Kone without facing similar antitrust issues. We use the “battle for Thyssenkrupp’s crown jewel” as an opportunity to discuss competitive effects of mergers in highly concentrated markets.

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Two publications with Düsseldorf Competition Economics participation were nominated for the Antitrust Wiriting Award:

"Screening Instruments for Monitoring Market Power−The Return on Withholding Capacity Index [RWC]" by our Managing Director Susanne Thorwarth, together with Olivia Bodnar, Alexander Steinmetz and Marc Bataille.

"How mergers affect innovation: Theory and evidence" by our Partner Justus Haucap, together with Alexander Rasch und Joel Stiebale.

Every year, the award honors the best academic publication with antitrust law relevance.

More Information [Antitrust Writing Award Webseite]

In its current Market Power Report - Energy the Bundeskartellamt acknowledges the Return on Withholding Capacity (RWC) Index, which Marc Bataille, Olivia Bodnar, Alexander Steinmetz and Susanne Thorwarth have developed as an alternative or supplementary indicator for measuring market power in the electricity generation market. The RWC Index enables an assessment of the risk of abusive capacity restraint and, accordingly, the establishment of antitrust market dominance.

The BKartA comes to the conclusion that "the RWC can therefore, if properly implemented as a screening instrument, complement the RSI in a meaningful way in the future.

Related Literature:

Bataille, Marc, Olivia Bodnar, Alexander Steinmetz, Susanne Thorwarth (2019), Screening Instruments for Monitoring Market Power - The Return on Withholding Capacity Index (RWC), Energy Economics, Volume 81, S. 227 - 237, Juni 2019, download: https://ideas.repec.org/a/eee/eneeco/v81y2019icp227-237.html

In their discussion paper, Niklas Gösser and Nima Moshgbar present an innovative parameter-based method to account for time fixed effects in econometric models when classical time dummy variables cannot be used. Time fixed effects are important to avoid distortions due to macroeconomic shocks, but often pose a challenge for certain data structures.
The proposed technique uses trend polynomials to smooth the time fixed effects. Monte Carlo simulations prove that this method provides consistent estimators under defined conditions. In addition, a test procedure is presented to determine the optimal complexity of the smoothing polynomial.
This method is particularly relevant for economic analyses in which time periods are divided into event and control phases and conventional time dummies are not applicable due to multicollinearity. Examples are cartel premium estimates, merger controls and economic crisis studies. The approach presented helps to avoid distortions due to time-dependent effects that are not taken into account.

Gösser, N. & Moshgbar, N. (2020): Smoothing Time Fixed Effects. DICE Discussion Paper No. 343.

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In May 2019, the first media reported on Thyssenkrupp AG's possible plans to sell parts of its lift segment, which produces lifts and escalators. At the beginning of September 2019, Thyssenkrupp announced that it was also considering the sale of its entire lift division. Kone Corporation, a major player in the lift and escalator industry, signalled public interest in a takeover. At the same time, Kone announced that it would sell the entire European lift business of Thyssenkrupp to the private equity firm CVC in the event of a successful acquisition for competition law reasons. Other investors are competing with Kone without expecting similar antitrust hurdles.
The ‘battle for the crown jewel of Thyssenkrupp’ is used here to discuss the competitive effects of mergers in highly concentrated markets.

Haucap, Justus & Kehder, Christiane (2020): A Note on the Sale of Thyssenkrupp’s Elevator and Escalator Business, Februar 2020.

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The study ‘The Impact of Consumer Protection in the Digital Age: Evidence from the European Union’ examines the influence of EU-wide consumer protection regulations on consumer confidence and purchasing behaviour. The Unfair Commercial Practice Directive (UCPD) was implemented by the EU member states between 2007 and 2010. Using data from the Special and Flash Eurobarometer from 2006 to 2014 and expert assessments of the level of consumer protection prior to the introduction of the regulation, a difference-in-difference approach with several time periods is applied.
The results show a significant correlation between the introduction of the UCPD and consumer confidence as well as cross-border purchases in countries that had a low level of consumer protection before the introduction. This effect increases over time and then remains relatively constant.

Haucap, J., U. Heimeshoff und Anja Rösner (2020): The Impact of Consumer Protection in the Digital Age: Evidence from the European Union, International Journal of Industrial Organization 73, 102585.

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In his article in the journal Wirtschaftsdienst (issue 13, p. 20-29), Justus Haucap analyses the current challenges of the platform economy for competition law. The rapid development of digital platforms is leading to an intensified competitive situation, but at the same time harbours the risk of market foreclosure by dominant platform companies. These often have considerable market power, which makes it necessary to adapt antitrust law. Against this background, the 10th amendment to the Act against Restraints of Competition (GWB) focuses on the supervision of abuse under antitrust law in order to effectively counter the concentration of power in platforms. Merger control takes a back seat.

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The Competition Economics Working Group of the Bundeskartellamt met on 13 December with the participation of Prof. Dr. Justus Haucap.

The following topics were on the agenda:

1. Mergers between companies at different stages of the value chain, which can lead to cost increases for competitors (raising rivals' costs),
2. the study on algorithms and competition by the Bundeskartellamt with the French Autorité de la concurrence, and
3. the classification under antitrust law of very extensive data collection and exploitation.

In addition to employees of the Bundeskartellamt and Justus Haucap, Prof. Dr. Stefan Bühler (University of St. Gallen), Prof. Dr. Roman Inderst (Goethe University Frankfurt am Main) and Prof. Dr. Markus Reisinger (Frankfurt School of Finance & Management) took part in the discussion.

More Information

Our Partner Prof. Dr. Christian Wey was invited by Directorate-General for Agriculture and Rural Development [DG Agri] and Joint Research Centre [JRC] to present about the “Economics of Retail Association and Buyer Power” on the Workshop “The role of national and international retail alliances in the agricultural and food supply chain” held on 4./5. November 2019 in Bussels.

Further information about the workshop and the presentation of Prof. Dr. Christian Wey can be found here.

FTC Commissioners Rohit Chopra and Becca Kelly Slaughter prominently cite recent research by our Partner Prof. Dr. Justus Haucap in their statements on the Federal Trade Commission clears Bristol-Myers Squibb acquisition of Celgene.

The cited studies can be found here:
Justus Haucap, Joel Stiebale [2016], Research: Innovation Suffers When Drug Companies Merge, HARVARD BUSINESS REVIEW [Aug. 3, 2016]

Justus Haucap, Alexander Rasch, Joel Stiebale [2016], How Mergers Affect Innovation: Theory and Evidence," International Journal of Industrial Organization, Elsevier, Vol. 63, pages 283-325.

Together with "White & Case", Düsseldorf Competition Economics hosted a seminar on "Killer Acquisitions in the Pharmaceutical and Digital Industry". The programme included lectures on the following topics:

• Theories of harm from an economic and legal perspective
• Empirical evidence
• Methods of proving harm
• Do we need legislative changes?

The speakers were:

Prof. Dr. Justus Haucap, Director of Düsseldorf Competition Economics and Director of Düsseldorf Institute for Competition Economics (DICE)
Prof. Dr. Kai-Uwe Kühn, Permanent Visiting Professor at Düsseldorf Institute for Competition Economics (DICE), former Chief Economist DG Competition
Dr. Tilman Kuhn), Partner of White & Case
Thilo Wienke), Associate of White & Case

Who influences the digital future in Germany? According to the business magazine Capital, Düsseldorf Competition Economics partner Prof. Dr. Justus Haucap is one of the 15 most influential minds in digitisation in Germany. Further personalities are the investors Oliver Samwer and Frank Thelen, as well as SAP CEO Christian Klein or Minister of State Dorothee Beer.

To the article at capital.de

In the current FAZ ranking of the most influential German economists, our Prof. Dr. Justus Haucap ranks 17th in the overall ranking. The ranking of the Frankfurter Allgemeine Zeitung is published once a year and measures the extent to which an economic researcher is heard in the media, appreciated by politicians as an advisor, and provides impulses in science that encourage other researchers to quote the work. For the first time, the Twitter presence of economists is included in the ranking. The ranking is compiled in cooperation with the media research institute Unicepta, the association for scientific policy advice Econwatch, the website Makronom and the ZBW - Leibniz Information Centre for Economics.

To the ranking.

DICE Consult Partner Justus Haucap Justus Haucap has been named in GCR's "Who is Who Legal" to the list of leading experts in the field of "Competition". He is an outstanding figure in the German market who is well known for his strong academic knowledge of competition matters.

Who's Who Legal identifies the foremost legal practitioners in multiple areas of business law.

The Bundeskartellamt has prohibited the merger of DSD and Remondis. According to the President of the Bundeskartellamt, Andreas Mundt, the merger would have led to a significant impediment of competition in the dual systems and higher costs for consumers.
A study by Düsseldorf Competition Economics (DICE Consult) on behalf of the bvse industry association came to similar conclusions and also critically assessed the intended merger.

Further information on the procedure and the parties to the proceedings can be found in a Juve article.

Partner Prof. Dr. Justus Haucap is one of the main speakers at the antitrust seminar of the business law firm "White & Case". The seminar will take place on 9 May 2019 in Düsseldorf under the title "Modern Antitrust Law in Times of Digitalisation and New Distribution Formats".
Further information as well as a registration form can be found here.

A Düsseldorf Competition Economics (formerly DICE Consult) study caused a furore in the media. On behalf of the industry association bvse, Düsseldorf Competion Economics conducted a study under the leadership of Prof. Dr. Justus Haucap to examine the effects on competition of the announced takeover of the Dual System Germany [DSD] by the waste management company Remondis. Numerous media such as Süddeutsche Zeitung, Die Welt, SPIEGEL-Online and the industry magazine Euwid report on the study. The central result: The planned takeover puts the new company in a unique position to have a significant negative impact on competition in many markets by controlling the entire value chain.

In an interview with WELT, our partner Prof. Justus Haucap sharply criticizes the planned postage increase of Deutsche Post AG. "What's going on is an imertinence," says Haucap. He is especially critical of the intervention of the Minister of Economic Affairs, which has "nearly undermined the price regulation of the postal service". "For effective control of the postal market, the market-dominating company Deutsche Post would have to be forced to separate its accounts for the dispatch of letters and parcels," Haucap continued.

Read the complete Interview.

The Bundeskartellamt will prohibit the takeover of the Dual System Deutschland (DSD) by the Remondis on the basis of competition concerns. The Bundeskartellamt has informed the two companies that "the acquisition of DSD by Remondis would lead to an impediment of competition in the dual system in Germany. There are fears of higher costs for DSD's competitors, significant market share gains for DSD and ultimately higher prices on the market for dual systems". A study by Düsseldorf Competition Economics (formerly DICE Consult) on behalf of the bvse came to a similar conclusion and also classified the intended merger as critical.

In a recent article in the "Juve" trade magazine, an expert study by Düsseldorf Competition Economics is regarded as a decisive building block for the suspension of the action for damages brought by Schlecker, Rossmann and Müller against renowned chocolate manufacturers. The Düsseldorf Competition Economics (formerly DICE Consult) expert opinion under the direction of Prof. Dr. Ulrich Heimeshoff and Dr. Susanne Thorwarth determined considerable methodical shortcomings in the expert opinion of the opposite side, whereby the plaintiff side could no longer maintain the demanded sum of damages and withdrew the claim.

To the Juve article