Further high fuel prices: trade criticizes “blank check” for the cartel office

Fuel prices remain high despite the tank discount. Economics Minister Habeck has brought a tightening of antitrust law into play – and for this has received sharp criticism from the trade association. Even in the coalition, the move is not without controversy.

The German Trade Association has sharply criticized the plans of Federal Minister of Economics Robert Habeck (Greens) for stricter antitrust laws. “We consider the introduction of abuse-independent unbundling options and antitrust profit skimming claims without proof of fault to be a mistake,” said Managing Director Stefan Genth of the editorial network Germany. “Such a blank check for the Federal Cartel Office would favor arbitrary and politically motivated decisions.” He recommends “urgently” not to pursue the project any further.

According to Habeck’s plans, the Cartel Office is to be given more options to intervene in order to be able to take tougher action against mineral oil companies. In addition to more powerful sector inquiries, competition watchdogs should also be able to siphon off profits if companies abuse their market power. As a last resort, demergers should be possible.

The background to the project: On June 1st, the energy tax on petrol and diesel was reduced to relieve motorists. But this was hardly noticeable at the pumps.

General suspicion warning

Genth now said that the trade was also affected by high petrol and energy costs and could understand the anger. However, the Economics Minister’s plans would have negative consequences for competition, consumers and Germany as a business location.

“Companies’ activities in competition are aimed precisely at gaining a strong market position. If market power that has been achieved through its own efforts and has not been abused is generally suspected by the legislator per se, this can dampen the commitment of companies on the market from the outset ” Genth said.

The introduction of an abuse-independent possibility for profit skimming also appears to be “extremely risky,” Genth continued. “Because it would also be possible to skim off legally earned income, the serious question then arises as to whether such a legal measure would be constitutional at all,” he warned.

Lindner: Don’t judge oil companies

FDP leader Christian Lindner had previously opposed prejudice against oil companies. One should “not use untested hypotheses here,” he told the “Welt” TV station. It is “currently speculation” whether or to what extent the tax cut will not be passed on by the corporations. And he’s “not so sure” that discounts won’t go down well with drivers. “Refueling would be much more expensive if there was a tax on top of that,” Lindner pointed out.

However, should there be a form of abuse of market power, then he is also very much in favor of tough action against oil companies, Lindner clarified. “I’m only concerned with a clean analysis. I’m in favor of the cartel office working with all severity” when market power is abused.

A rejection issued Lindner again calls for a speed limit or temporary driving bans to save energy. These are “measures that would be taken if there were a real shortage, a physical shortage – but we don’t have them,” he dismissed an approach by SPD leader Esken.

He also rejected the abolition of the tank discount, which was repeatedly called for by economic experts. That’s not so easy because it’s a law, the liberal said in an interview with the daily topics.

Monopolies Commission advocates stricter competition controls

The chairman of the monopolies commission, Jürgen Kühling, considers stricter competition law to be correct. However, the currently very high fuel prices could not be reduced in this way, the regulation expert made clear. The proposals by Federal Minister of Economics Robert Habeck (Greens) went in the right direction, “but they are not short-term instruments,” said Kühling of the “Stuttgarter Zeitung” and the “Stuttgarter Nachrichten”.

The Monopolies Commission is a body of experts that advises the federal government and parliaments on competition issues. Kühling recalled that the Commission had already initiated an investigation into the refinery sector in 2012. “If it had been done then, we would be better informed and prepared now.”

Scholz open to Habeck’s proposal

Chancellor Olaf Scholz had also been open to tightening antitrust laws. “It’s right that we’re looking closely at current price developments,” he said. You have to see whether the tools and opportunities you have are sufficient. One should not “shy away from taking legislative measures where we identify efficiency deficits”.

From his point of view, the controversial tank discount works – if only partially. A government spokesman said it was not that the tax cut had not achieved anything. It can be assumed that the prices at the gas stations would be significantly higher if the tax reduction did not exist.

Praise from Klingbeil, criticism from Esken

SPD co-head Lars Klingbeil praised Habeck’s cartel office plans. It would be good if “finally action was taken on gas prices. Such price agreements are indecent,” Klingbeil told the “Rheinische Post”.

Klingbeil’s colleague Saskia Esken, on the other hand, criticizes the fact that the government has not yet ensured that consumers will also benefit from the relief. She finds the announced tightening of antitrust law too late, but welcomes the idea: “It would have been a long time ago, but I’m glad it’s on the way now,” said the SPD leader, pointing out that Habeck in the government for the topic is responsible.