The First Bi-Annual Report by the German Monopolies Commission (Summary 1977)

• Published date: 01 September 1978
• Date: 01 September 1978
• DOI: http://doi.org/10.1177/0003603X7802300309
• Subject Matter: Article

THE

FIRST

BI·ANNUAL

REPORT

BY

THE

GERMAN MONOPOLIES COMMISSION

(SUMMARY 1977)

EDITOR'S

NOTE:

Reprinted with permission of The German Eco-

nomic Review, Wissenschaftliche Verlagsgesellschaft M.B.H.,

Stutt-

gart, Deutschland.

667

668

THE

ANTITRUST

BULLETIN

DOCUMENTATION

The First Bi-Annual Report

of

the Monopolies Commission

=10

1. Terms of Reference

and

Implementation

1. Pursuant

to

§24 b, para 3, of the Act against Restraint of Competition

(hereafter referred to as GWB) the Monopolies Commission is required to

"

...

evaluate the prevailing degree of economic contentration and its foresee-

able development in the light of economic policy, in particular competition

policy, and appraise the application of §§ 22 to 24 a. The Commission shall

also indicate any amendment of the pertinent provisions of this Act which

it deemsnecessary."

2. The extent and development of economic concentration are of funda-

mental importance to the proper functioning of an economy which is based

on competition.

Only

if there is a sufficiently large number of independent

enterprises operating in various separate markets can competition fulfil its

motivating and controlling functions with respect to special markets and

the economy as a whole. Only provided

that

there is well-functioning com-

petition is it acceptable to leave to individual entrepreneurs decisions that

may affect the entire economy

such.

as decisions on production methods,

qualities and quantities of production, prices and investments.

The competitive process is potentially threatened by restrictive practices and

concentration. Apermanent control of corporate mergers is thus a priority

task of economic policy. Continuous observation of the concentration pro-

cessis one of the most important prerequisites.

3. Corporate concentration is analysed in various industries of the economy

as defined by the German Federal Bureau of Statistics with the object of pro-

viding an indication of the extent and development of horizontal concen-

tration, e. g. the expansion of monopolistic and oligopolistic power. To

achieve this, it would normally be necessary to measure concentration in the

corresponding relevant markets. This, however, is impossible due to the lack

of statistical data. The industries analysed here constitute a very rough, but

under the present circumstances the only possible, approximation to relevant

markets.

The Monopolies Commission has confined its analysis to the area of industry

and mining. Detailed statistical data are presented as to the number, size and

<.

Members of the Monopolies Commission:

Prof.

Dr.

E.-].

MESTMACKER

(chairman),

D.

FERTSCH-RoVER,

Prof.

Dr.

E.

KANTZENBACH,

Dr. E.

MITTELSTEN

SCHEID,

].

MURAWSKI.