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Austrian Cartel Court Increases Fine for Breach of Merger Control Rules

24.10.2024 | 🇦🇹 Austrian competition authority

The Austrian Cartel Court significantly raises a fine against Palmers Textil Aktiengesellschaft from EUR 5,000 to EUR 100,000 for unlawfully proceeding with a merger before obtaining approval.


In March 2024, the Austrian Federal Competition Authority requested fines against Lenzing AG and Palmers for breaching merger control rules. Lenzing accepted guilt, resulting in a EUR 75,000 fine. However, Palmers was fined EUR 5,000, which the BWB and the Federal Cartel Prosecutor appealed as insufficient.

Following the appeals, the Cartel Court increased Palmers' fine to EUR 100,000, emphasizing the importance of merger control rules in maintaining market competition. The violation involved the premature implementation of a merger, forming Hygiene Austria, before official approval.

The breach of merger control rules, known as the unlawful implementation of a merger before regulatory approval, can lead to fines imposed by the Cartel Court to protect competition from the potential anti-competitive effects of unauthorized mergers.

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