Purchasing cooperatives and antitrust law

Purchasing cooperatives provide value to many retailers and traders. However, with these kinds of associations it is necessary to ensure that they do not violate antitrust or competition law.

Purchasing cooperatives can be particularly beneficial for small and medium-sized merchants looking to strengthen their position in the market. While purchasing cooperatives of this kind are allowed under EU law, their market share cannot be too large. We at the commercial law firm GRP Rainer Rechtsanwälte note that a market share of around 15 percent serves as a benchmark here.

It is in view of this that the Bundeskartellamt, Germany”s Federal Cartel Office, has initiated administrative proceedings against a purchasing cooperative for furniture. The cooperative already counts several commercial enterprises as its members, with another group wishing to join in the coming year. The Bundeskartellamt is now assessing whether there are concerns pertaining to competition law that preclude the group being admitted.

Antitrust law does not, as a general rule, preclude purchasing cooperatives of this kind, as these associations enable small and medium-sized businesses to maintain and strengthen their position in the market and, of course, also provide consumers with goods on more favorable terms. But there are limits: these kinds of cooperatives can put pressure on manufacturers. If their influence on the market becomes too great, this can have negative consequences. Manufacturers that cannot meet the negotiated terms could be pushed out of the market, reducing supply and ultimately subjecting consumers to rising prices.

That is why EU antitrust legislation provides that these kinds of purchasing cooperatives should not obtain a market share greater than approx. 15 percent. The Bundeskartellamt will now examine the purchasing cooperatives in the furniture sector from a number of different angles to determine whether there are concerns pertaining to antitrust law that preclude the association”s expansion.

Violations of antirust or competition law can be met with severe penalties, including formal written warnings, injunction suits and damages claims. Yet violations are by no means always obvious; even individual clauses within contracts can violate provisions of antitrust law. Lawyers who are experienced in the fields of antitrust and competition law can offer advice.

https://www.grprainer.com/en/legal-advice/antitrust-law.html

Acid Proof Lining Market Expected to Witness a CAGR Value of5.9% through 2016-2026

The need for protecting industrial surfaces exposed to corrosive chemicals will continue to influence the demand for acid proof lining in Germany. In 2016, the acid proof lining market in Germany is expected to reach market value of US$ 4,296.2 Mn, at a y-o-y growth of 5.1% over 2015. The rising incidences of industrial equipment damages owing to the mechanical abrasion is also anticipated to drive the demand for acid proof linings in Germany.

The industrial use of acid proof lining in coating the floor tiles of various manufacturing units is expected to fuel the growth of Germany’s acid proof lining market. The rising necessity of providing durable solutions to industrial infrastructure is observed as a key driver for the growth of the Germany acid proof lining market. Furthermore, the mounting private equity investments will continue to boost the growth of the Germany acid proof lining market. However, the high costs of veneering industrial surfaces will be a major challenge hampering the demand for expensive yet highly-durable acid proof lining types such as carbon brick coating.

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On the basis of material-type, the acid proof lining market in Germany will witness the fastest growth in the thermoplastics lining segment. In 2015, the thermoplastics lining segment is estimated to have accounted for over 25% of total market share in Germany’s acid proof lining market. By the end of 2016, the share of thermoplastics lining segment is expected to grow at a substantial rate, closing in on the ceramic brick lining market share, which accounted for 34.8% in 2015.

The acid proof lining market in Germany is further segmented on the basis of end-use industries. Owing to the pervasive need of acid proof lining for protection against chemical abrasion, the chemical industries in Germany are expected to dominate the end-user segment with 29.3% market share in 2016. The water treatment facilities and power generation plants in Germany are also anticipated to fuel the demand for durable acid proof lining.

In order to expand the scope of application, the market for acid proof lining in Germany is undergoing reforms that favour manufacturers. Small acid proof lining manufacturers will continue to emerge, owing to the low entry barriers. The leading companies in Germany’s acid proof lining market will expand their business operations to meet the surging adoption levels of acid proof linings from end-use industrial verticals such as metallurgy, pharmaceuticals, and automotive manufacturing. The key players of the Germany acid proof lining market include AGRU Kunststofftechnik GmbH, Steuler-Kch GmbH, SKO Säureschutz und Kunststoffbau GmbH, GBT-BÜCOLIT GmbH, Christen & Laudon GmbH Kunststoff – Apparatebau, A-SPT Protective Solutions GmbH & Co. KG, Knapper Oberflächentechnik GmbH, Nittel GmbH & Co. KG, , Hurner-Funken GmbH and Simona AG, among others.

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Long-term Outlook: The Germany acid proof lining market is projected to register a CAGR of 5.9% during the forecast period 2016-2026. In terms of value, the acid proof lining market in Germany will reach US$ 7.605.3 Mn by end of the forecast period.

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