cartel

Which translation, when

Why

Cartel translates as Kartell, and the German word carries a wider field than the English one suggests. The prohibition itself stands in § 1 GWB: agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competition are prohibited. Three features of that sentence do the work. First, it reaches beyond contracts, since a decision of a trade association and a merely concerted practice are caught, which is why the exchange of information about future prices among competitors is dangerous even without any agreement. Second, object or effect are alternatives, so a price-fixing or market-sharing arrangement is prohibited by its object without proof that it actually worked. Third, the wording follows Art. 101 Abs. 1 AEUV, omitting only the clause about trade between member states and the list of examples, which is why European case law guides the German provision. Exemption runs through § 2 GWB, which frees agreements that improve production or distribution or promote technical or economic progress while allowing consumers a fair share and imposing no indispensable restrictions, and the European block exemption regulations operate through it. Two layers therefore apply at once: national law and, wherever trade between member states may be affected, Art. 101 AEUV, both administered by the Bundeskartellamt alongside the Commission. On the vocabulary, Kartellrecht names the whole competition-restriction field, including the abuse control and the merger control held by their own entries, while the law against unfair commercial practices sits in the UWG; rendering cartel law as Wettbewerbsrecht therefore blurs a boundary German lawyers keep.

Typical mistakes

• The prohibition covers concerted practices and association decisions, not only agreements, § 1 GWB, so a translation limited to contracts understates its reach.
• Object and effect are alternatives, so requiring proof of actual harm misstates the test for hard-core restrictions.
• Kartellrecht covers abuse and merger control too, so equating it with the narrow English sense of cartel misses most of the field.

What matters

Screening a distribution agreement for a German client: the analysis should test it against § 1 GWB and Art. 101 AEUV together, ask whether the restriction is one by object, and check the exemption route of § 2 GWB and the block exemptions.

Examples