Competition Law in Austria

Austria, as a member of the European Union, has developed a robust legal framework for the protection and promotion of fair competition. Austrian competition law is designed to ensure a level playing field for businesses, protect consumers, and encourage innovation by preventing anti-competitive behavior. This article provides an overview of the key aspects of competition law in Austria, including antitrust law, unfair competition law (UWG), and the role of enforcement authorities.

Legal Framework for Antitrust and Merger Control

Austrian competition law is primarily governed by the Cartel Act 2005 (Kartellgesetz, KartG), the Competition Act (Wettbewerbsgesetz, WettbG), and EU competition rules, especially the Treaty on the Functioning of the European Union (TFEU).

Key areas include:

• Cartel Prohibition (§ 1 KartG / Art. 101 TFEU): Prohibits anti-competitive agreements, such as price-fixing, market-sharing, and bid-rigging.
• Abuse of Dominance (§ 5 KartG / Art. 102 TFEU): Prevents companies from exploiting a dominant market position, for example through predatory pricing or exclusive dealing.
• Merger Control (KartG, §§ 7 ff.): Mergers that exceed certain turnover thresholds must be notified to the Bundeswettbewerbsbehörde (BWB) and cleared before implementation. In some cases, the European Commission may have jurisdiction.

Unfair Competition Law (UWG): Protecting Fair Market Conduct

In addition to antitrust law, the Unfair Competition Act (Gesetz gegen den unlauteren Wettbewerb, UWG) protects against unfair business practices that may distort competition but do not necessarily involve market dominance or cartel behavior.

Typical claims under the UWG include:

• Misleading Advertising (§ 2 UWG): Claims can be brought against businesses that provide false or deceptive information in advertising, product packaging, or marketing materials.
• Denigration of Competitors (§ 7 UWG): Prohibits statements that unfairly disparage a competitor’s business, goods, or services.
• Aggressive Commercial Practices (§ 1a UWG): Protects consumers and businesses from undue influence, harassment, or coercion in commercial practices.
• Violation of Market Practices (§ 1 UWG): A general clause that captures behavior contrary to accepted market practices or good faith, such as exploiting competitors’ business secrets or inducing contractual breaches.
• Exploitation of Reputation (§ 9 UWG): Prohibits unauthorized use of a competitor’s name, trademarks, or product designations.

Claims under the UWG can be brought by competitors, consumer protection associations, or chambers of commerce, and typically aim for injunctions, removal, publication of judgments, and (in some cases) damages.

Enforcement and Authorities

Enforcement of Austrian competition law involves several actors:

• The Bundeswettbewerbsbehörde (BWB) investigates antitrust violations and initiates proceedings before the Cartel Court (Kartellgericht).
• The Federal Cartel Prosecutor (Bundeskartellanwalt) represents the public interest in cartel cases.
• Civil courts handle UWG claims and private damages actions for antitrust infringements.

Leniency and Whistleblower Systems

Austria’s leniency program allows businesses involved in cartels to avoid or reduce fines if they cooperate with the BWB. The BWB’s anonymous whistleblower system also helps detect competition law violations by enabling individuals to report suspected infringements confidentially.

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