Austria : An Introduction

Contributed by bpv Hügel Rechtsanwälte OG

While Austria has had anti-trust legislation since 1951, its regime is generally considered to be “younger” than most of its Western European counterparts. Indeed, the change from the post-war belief that cartels were often justifiable on industrial policy grounds to a modern anti-trust system was more gradual in Austria than in many Western European countries. Since Austria’s accession to the EU in 1995, both legislation and enforcement of Austrian competition law have been mod-ernised, and Austria today is squarely in the centre of Europe also with regard to competition law.

The EU (and earlier the EEA) accession have not only significantly impacted competition law in the narrow sense but also state aid law, which may likewise be directly enforced by the European Commission. Further, it brought about significant changes in the area of public and utilities pro-curement. While the impact arguably is strongest in the realm of competition law, there is virtually no area of Austrian law, which has not been affected, in one way or another, by EU law and, in par-ticular, the four freedoms (free movement of goods, capital, services, and people) which make up the internal market.

Focusing on competition law in the narrow sense, since 2002, the Austrian (public) enforcement framework provides for three main players. The independent Federal Competition Authority (FCA) is Austria’s investigative agency. Its main responsibilities are the investigation of restrictions of competition, as well as the Phase 1 review of mergers. Unlike most European competition authori-ties, the FCA does not have decision-making power: all decisions, both on violations of the behav-ioural antitrust rules and on mergers (in Phase 2 proceedings) are made by the Cartel Court (CC), a specialised division of the Vienna Court of Appeals. While the CC may be seized of disputes by private parties, applications for fines as well as applications for Phase 2 reviews of mergers may only be submitted by the FCA and the Federal Antitrust Prosecutor (FAP). The FAP, who reports to the Minister of Justice, is charged with maintaining the public interest in competition enforcement.

Given the rather low filing thresholds and the wide definition of what constitutes a merger (poten-tially) affecting the Austrian market, a lot of the cases dealt with by the FCA and the FAP are mer-ger control related. However, as was the case elsewhere, merger filing numbers took a serious hit during the 2008 economic crisis, and continue to be significantly lower than pre-crisis levels. Fur-ther, the introduction, in 2006, of a leniency programme significantly transformed Austrian competi-tion enforcement. Since the adoption of the programme, the FCA has brought a number of actions alleging the existence of cartels e.g. in the elevator and escalators, chemicals and freight forward-ers industries. The highest fines imposed so far, in the Austrian elevators and escalators case, amounted to EUR 75.4 million.

While Austrian law provides for rather strict presumptions of dominance, dominance cases have traditionally played a less prominent role in the FCA’s and FCP’s enforcement practice. This also is in line with the situation at EU level, where merger and cartel work clearly make up the lion’s share of the European Commission’s work. Dominance issues however continue to be pleaded in litigation between private parties before the CC and the Austrian civil courts (as one form of private en-forcement beyond mere damage claims), and there are a number of interfaces between general competition law and the regulatory regimes for industries such as energy and telecoms.

In addition to its case work, the FCA also has the power to conduct general market investigations. The main thrust of the FCA’s investigations so far has been on the energy sector, where the FCA examined the Austrian oil and gas markets. Furthermore, the FCA also investigated the Austrian general retailing market, with ambivalent results. More recently, the FCA has devoted considerable energy to the car fuel market, and regularly publishes a survey of fuel prices in Austria.

In line with the European trend, Austria recently has also seen a rise in private damage claims fol-lowing on from fine decisions; first, in cases concerning driving schools and, on a far bigger scale, after the CC’s decision in the elevators and escalators case. While the latter cases are still pending and results uncertain, most practitioners expect the trend towards private damage litigation to con-tinue.

At the same time, recent years have seen some debate on how to further boost administrative en-forcement. While some members of the Austrian antitrust community support a system change to the EU model, with the FCA being granted decision-making rights, notably the Federal Chambers of Commerce and Labour have come out against such a change. The chambers’– who traditionally play an important role in Austrian law-making as well as in competition enforcement (today, inter alia, as lay judges at the CC) – recent report on Austrian competition policy rather supports a con-tinuation of the present system, with the FCA being granted additional resources to meet its inves-tigative goals.

The report has triggered a draft amendment to the Austrian anti-trust regime. While it is not a real overhaul of the rules in place, there are several changes expected to become law still this year. For example, the de-minimis rules, which currently also exempt hard-core cartels, would, according to the draft amendment, only apply to less severe infringements. In general, most practitioners expect the demand for competition law advice to continue to increase. In addition to the above developments, this also follows from the international trend of companies strengthening their compliance organisations. While driven not only by competition law risks, this trend is expected to affect the nature of legal advice, with clients seeking increasingly sophisticated solutions to difficult and novel questions.

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Competition/European Law: Austria

THE FIRM In addition to a robust cartel defence practice, this firm has a heavy caseload of abuse and merger control work. The team is one of the most highly regarded in Austria and able to handle complex issues despite its relatively compact size. With dedicated litigators on the team, it is well placed to represent clients in cartel litigation, including in damage claims cases. The team's outstanding reputation helps attract big-name companies, including OMV, VERBUND and Telekom Austria. Clients say the dedication of the lawyers and the personal attention received are key benefits.

Sources say: "I think it has some of the best expertise in antitrust." "Has a continuous flow of work and is involved in all the big cases." 

KEY INDIVIDUALS Astrid Ablasser-Neuhuber is the driving force behind the competition team. "An excellent, highly motivated lawyer," she has long experience in competition law, having practised in Vienna and Brussels. Her practice covers merger control, antitrust and abuse of market dominance, and she remains present on the highest-profile cases. "Unpretentious and down to earth," Florian Neumayr is going from strength to strength as a litigator fully dedicated to competition cases. He has been deeply involved in follow-on damage claims in the lift sector, attracting much acclaim from peers.

THE FIRM International clients continue to flock to this firm, which offers an integrated multi-jurisdictional service and a well-rounded competition practice in Austria. To add to its usual diet of merger filings, leniency applications, state aid work and cartel proceedings, the team has been busy defending a client against damage claims for antitrust infringements. Sources say the team benefits from strong support in Germany and Brussels. It recently advised ASSA ABLOY Entrance Systems on merger control matters regarding its acquisition of shares in agta record.

KEY INDIVIDUALS Axel Reidlinger heads up the Freshfields team in Vienna and is "one of the top lawyers with one of the broadest practices," sources say. He has a wealth of experience in merger control, antitrust, state aid proceedings and cartel cases.

THE FIRM This practice is in great demand for multi-jurisdictional work in CEE and SEE. It has impressive bench strength in competition, and clients highly recommend the team for complex cases in particular. It is perceived as a merger-driven practice, with recent work including representing Eni in merger control proceedings before the EC regarding the acquisition of Exxon Mobil Austria's retail business, and advising Volkswagen on its acquisition of Porsche. The team also handles a steady flow of antitrust and state aid work. Examples include acting for the former VA Tech Group and Siemens in infringement proceedings before the European courts, and advising Österreichische Volksbanken on state aid matters.

Sources say: "They have great capacity in competition law." "A force in the legal market - I like and respect them very much."

KEY INDIVIDUALS Hanno Wollmann is considered an authority on European and Austrian competition law, including merger control, antitrust and state aid. His practice also includes public and private litigation. Sources note his dry wit and his tireless dedication to the practice area. "He has built an excellent reputation over the years," says an interviewee. Practice head Franz Urlesberger focuses on competition matters in CEE, especially international merger filings. He also has impressive expertise in cartel law, recently representing a client before the cartel court of appeals in a case regarding the freight forwarders' sector. "I like it that you don't have to explain anything to him," says a client. Volker Weiss advises on merger control, cartels and state aid, and attracts warm praise from sources. "He is not too technical, but he doesn't take things too lightly either - he strikes exactly the right balance," says a client. He is also good at crunching numbers, report interviewees: "He wouldn't miss a single figure." Christoph Haid is making a name for himself as a competition lawyer, and also advises clients on compliance programmes. 

THE FIRM Sources note this team's innovative streak, strong foothold in the domestic market and strength in litigation. The group notably represented the City of Vienna, IMMOFINANZ and other real estate owners in private enforcement proceedings regarding an escalator and lift cartel case. Besides running a busy merger control practice, it advises on antitrust proceedings and abuse of market dominance cases. The firm's client list features prestigious Austrian names such as UniCredit Bank Austria, which it recently represented in competition law proceedings against Erste Bank.

Sources say: "It was a smooth and easy co-operation." "The perfect partner for merger control work."

KEY INDIVIDUALS Raoul Hoffer leads the competition department and is a well-known name for his work on cartel damages claims. His broad practice also covers merger filings, state aid, abuse of dominance and leniency work. Clients note Johannes Barbist's "valuable advice on distribution agreements." Apart from competition law, he advises on compliance and regulatory matters. He is based in Innsbruck. Isabelle Innerhofer is a hit with clients, who appreciate her "clear and concise" answers and her ability to predict and anticipate the reaction of the competition authorities. She recently advised Andritz on several merger filing proceedings.

THE FIRM Excellent client care and a cost-efficient service are among the attractions of this well-regarded firm. The competition team remains busy with a mix of merger control work, cartel proceedings and abuse of dominance matters. Recent work has included representing a producer of chemicals in a cartel case. Clients come from a range of sectors, including transportation, food and media.

Sources say: "Very responsive, to the point and clear in its advice." "Definitely my first choice for competition."

KEY INDIVIDUALS Sources praise Stephan Polster's creative and solution-focused approach. "He never gives up before a legal problem is solved," says a client. Peers single out Christian Mayer as a talented lawyer in this field. His expertise includes competition law, compliance and energy matters. 

THE FIRM Wolf Theiss has a renowned international practice thanks to its network of offices across CEE. It is steadily building strength, having recently attracted two senior lawyers. It is well placed to advise on merger control issues in the region, and lately has been particularly busy advising on behavioural cases. The team typically acts for multinational organisations, including big names from the construction, transportation and telecoms industries. It has recently won several new clients from the consumer goods and chemicals sectors.

Sources say: "Definitely gaining market presence."

KEY INDIVIDUALS Günter Bauer oversees the team and is a long-established name in the field. His experience of working in Brussels gives his practice a competitive edge, say peers, and clients describe his advice as "fast, reliable and to the point." He recently represented McArthurGlen in a landmark case about radius clauses. Jochen Anweiler can claim knowledge of national and EU merger control, cartel law and state aid. Sources say he is a valuable asset to the team, thanks to his recent Brussels experience. Since publication, Peter Thyri has joined Weinrauch Rechtsanwälte.

THE FIRM The competition group at this international firm focuses on antitrust litigation, as well as compliance and distribution law. With support from its strong litigation department, it has continued to defend Schindler against private enforcement claims in the wake of the Austrian lift and escalator cartel case. It also successfully represented an international freight forwarding company in a cartel case. Other recent work has included handling cross-border merger control proceedings, an illustration of the team's strong international abilities.

Sources say: "A young and dynamic team, delivering excellent work." "Has never missed a deadline."

KEY INDIVIDUALS Andreas Traugott is head of the German and Austrian competition practice. Peers note he is doing well in building the firm's market presence, and clients praise his business acumen and clear communication style. "He has a pragmatic way of dealing with complex matters, and he delivers real value at a reasonable price," says a source.

THE FIRM This compact group delivers high-quality work, with clients citing the team's personal touch and fast turnaround times as among its biggest strengths. It advises on merger control as well as behavioural matters. Recent work has included defending a party in a cartel case in the plumbing sector, and representing Cinema Paradiso in a state aid case.

Sources say: "Fast, to-the-point answers. They didn't put in unnecessary hours." "Demonstrates the enthusiasm and curiosity needed in this field of work."

KEY INDIVIDUALS Isabella Hartung earns glowing client praise. "She has exceeded my expectations," says an interviewee. Clients were most impressed with her "communication skills, keen perception and ability to quickly find the core of a matter." 

THE FIRM Best known for its successful merger control practice, this team covers the full range of competition work, at both the national and European level. It represented STRABAG in merger control proceedings before the EC and the Austrian competition authorities regarding its joint venture with Lafarge. The team has also continued to represent privatisation agency ÖIAG before the General Court in Luxembourg in state aid and merger control proceedings over the takeover of Austrian Airlines by Lufthansa.

KEY INDIVIDUALS Bernhard Kofler-Senoner's practice includes competition, antitrust and distribution law as well as corporate and M&A. A client says: "He is very much engaged in the practice area. I always feel comfortable that his work is correct and that the numbers are going to be consistent."

THE FIRM What this firm may lack in size, it makes up in the quality of its service, sources say. The team has been involved in a number of major antitrust cases of late. As the representative of Rail Cargo Austria, it took a leading role in the Austrian freight forwarding cartel case. It also acted for Austrian Airlines in proceedings against an airport-cum-airline behaving like a vertically integrated competitor.

Sources say: "In Austria only a handful of law firms do competition in a serious way and Eisenberger & Herzog is one of them. I like working with the firm."

KEY INDIVIDUALS Andreas Zellhofer gives "state-of-the-art" competition advice, reports a client. Besides handling antitrust and merger control proceedings, he also advises on IP and IT issues. Peers admire him as an "unpretentious, hard-working guy" and say he "deserves much respect." Clients describe Dieter Thalhammer as a fast, flexible adviser who "stays calm in stressful situations." He heads the competition team and is also noted for his strength in litigation.

THE FIRM While perhaps better known for insolvency work, this firm has a well-regarded competition practice. It is especially recommended for antitrust advice and litigious cases. The team recently advised a party in follow-on litigation regarding the Austrian lift and escalator cartel case. The lawyers can draw on specialist knowledge from other areas of law, including public procurement, environment and IT.

KEY INDIVIDUALS Dieter Hauck is praised as a hard-working, experienced lawyer with a broad practice. Apart from antitrust and merger control, he also advises on EU law, IT, telecoms and public procurement.

THE FIRM This team has many clients from the transportation, construction and energy sectors. While it is better known for its public procurement practice, the firm handles a healthy flow of competition instructions. It has been particularly busy with merger control work, a recent example of which was advising EVN on its joint venture with Bulgarian energy company NEK for the construction of a EUR500 million hydropower plant.

KEY INDIVIDUALS Bernt Elsner splits his time between competition and public procurement, and is in demand with energy, construction and infrastructure clients. He specialises in merger control, antitrust and state aid.

THE FIRM The team at DLA Piper Weiss-Tessbach comprises lawyers specialising in competition, trade, public procurement, litigation and white-collar crime. Recent work has included a number of merger notifications and clearances. The team benefits from the firm's international network, such as working alongside colleagues in Germany to advise Burda Druck on merger control issues related to its acquisition of UE Sebald Druck.

KEY INDIVIDUALS Claudine Vartian is noted for her versatility as a lawyer and the high standard of her work. Besides running the competition, litigation and regulatory departments, she is also the managing partner of the firm.

THE FIRM This boutique firm is well known for its regulatory expertise, and has strength in procurement, competition and environmental law. The team recently demonstrated its skill in proceedings relating to the Austrian freight forwarders' cartel. Clients include a leading IT company, which the team advises on antitrust matters as well as merger control.

KEY INDIVIDUALS Martin Stempkowski's practice includes competition law and public procurement. Peers hold his expertise in high regard, saying they would not hesitate to refer work to him.

THE FIRM In recent times this firm has won a number of eye-catching instructions, and its success has not gone unnoticed by peers. The competition group represented several parties in cartel litigation in the transport sector, and advised on the Phase II merger notification and clearance for the Lafarge–STRABAG alliance, representing Lafarge Perlmooser and Financière Lafarge. The firm's offices in CEE make it well placed to handle multi-jurisdictional work.

KEY INDIVIDUALS Martin Eckel wins the admiration of peers for his recent handling of cartel litigation in the transport sector, and his advice on the establishment of Lafarge and STRABAG's cement business in CEE.

THE FIRM This compact firm notably attracts clients from the TMT and energy sectors, advising on merger control, compliance and distribution agreements, as well as handling cartel and leniency proceedings. It advised several companies in the freight forwarders' cartel case, and represented a leading European media company in a case brought by the Austrian cartel authorities. It also assisted a joint venture company in the energy sector in sorting out merger control issues.

KEY INDIVIDUALS Johannes Willheim is praised for his dedication to the practice area and is described as "a clever, business-minded lawyer." His practice has a strong focus on the regulated industries.

Sole practitioner Georg Legat remains one of the best-known names in the field, confirm sources. Norbert Gugerbauer of Gugerbauer & Partner is a widely respected lawyer, whose practice mainly focuses on the domestic market, according to peers. He has experience of working in Brussels and is a prolific writer of books on competition law. Karin Wessely's broad practice covers competition, IP and TMT work. She is praised as "a brilliant mind" and is held in high regard for her litigation skills in particular. Christina Hummer of Saxinger, Chalupsky & Partners splits her time between Brussels and Vienna, and is making a name for herself in competition law. Since publication, Peter Thyri has joined Weinrauch Rechtsanwälte. He specialises in competition, EU law and state aid.

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