Competition Law in the Tech sector – Is the German Competition Authority on a Collision Course with Donald Trump?
Following his inauguration, Donald Trump used a speech in Davos in late-January to criticise the European Union imposing fines on major US technology companies. In light of this, the German Bundeslkartellamt’s use of its powers under section 19a of the competition act is likely to prove an interesting topic in the coming months.
In many key respects, section 19a overlaps closely with the European Commission’s Digital Markets Act, which (along with the General Data Protection Regulation) was a key target for Trump’s ire. However, the German act came into practice almost two years before the Commission’s act and – depending on who you ask – section 19a is either a challenge to the effectiveness of the DMA or a sign that the BKA was ahead of the curve in taking competition questions in the technology sector seriously.
However, whatever your perspective on the interplay between the DMA and section 19a, there is no doubt that the technology sector will remain a key area of focus for the German competition authorities. On the authority’s website, Andreas Mundt (President of the BKA) is quoted as saying:
“The digital economy remains high on our agenda […] Many more cases against big tech companies are ongoing.”
Recent examples of the BKA’s focus on the technology sector have included its finding in September 2024 that Microsoft is a “company of paramount significance for competition” and was therefore subject to section 19a. Alphabet and Meta (parent companies of Google and Facebook respectively) had already been given this designation, while in April 2024 the Federal Court of Justice had upheld the BKA’s designation of Amazon as a company subject to section 19a. Apple is currently appealing its own designation.
The BKA also enjoyed a significant victory in October 2024 against Meta concerning the combining of personal user data. 2025 will see ongoing proceedings against Google Maps, Apple’s App Tracking Transparency Framework and Amazon’s price control mechanisms.
So far, the decisions under 19a have ended with the tech companies undertaking remedies (as was the case for Meta in the user data combining case) rather than the headline-grabbing billion dollar fines, which Trump described in his Davos speech as “a form of taxation”. This may mean that, in the short term at least, the European Union – rather than the BKA – will be the main focus of this discussion.
However, given the number of owners of large technology companies who are vocal supporters of Trump and the attitude of the German authorities, it is clear that this area will remain in the spotlight during 2025.
The Chambers Germany Guide, including a ranking of lawyers and law firms specialised in competition law issues, will be launched on February 20th 2025.
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