March 6, 2025 – The Austrian Federal Competition Authority (BWB) has filed an application with the Cartel Court seeking fines against DM drogeriemarkt GmbH (DM) for 20 instances of unfair trading practices related to the sale of agricultural and food products.
The BWB initiated the proceedings after receiving reports in April 2024 about letters DM had sent to multiple suppliers. These letters demanded payments under the so-called “OCR bonus” of 1.5% to 2.5% starting May 1, 2024, and also announced retroactive charges for the period between January and April 2024. According to the BWB, these charges were unjustified as they lacked a corresponding service or benefit for the suppliers.
OCR (Omni-Channel Retailing) refers to a retail strategy that integrates both online and offline sales channels.
Investigation and Alleged Violations
The BWB’s investigation found that the disputed demands affected various product categories, including soft drinks, teas, plant-based beverages, pickled vegetables, confectionery, honey, vegetable oils, spreads, sauces, pasta, children’s snacks and drinks, and sports nutrition products.
Although DM later withdrew its demands, meaning no payments were ultimately made, the BWB determined that the company’s actions constituted violations of Austria’s Fair Competitive Conditions Act (FWBG).
Given these findings, the BWB formally requested the Cartel Court to impose appropriate fines on DM for each of the 20 violations.
Legal Context and Possible Penalties
Under the FWBG, buyers are prohibited from demanding payments from suppliers that are unrelated to the sale of agricultural and food products. The law aims to protect suppliers who typically have weaker bargaining power against larger buyers, as determined by certain revenue thresholds (§ 5a Abs 2 FWBG).
The Cartel Court has the authority to impose fines of up to EUR 500,000 per case based on a BWB application. The current case also intersects with an ongoing preliminary ruling procedure at the European Court of Justice (ECJ), which will determine whether simultaneous demands made to multiple suppliers should be treated as individual offenses or as a single violation.
BWB Director General Natalie Harsdorf emphasized the authority’s commitment to tackling unfair trading practices, stating, “As we announced at the conclusion of the sector inquiry into the food industry, the BWB prioritizes the prosecution of unfair trading practices. Competition also means fairness towards less market-powerful business partners.”
