Act against Restraints of Competition (GWB): what matters for small traders

Author name: Admin Publication date: 2025-07-01 Article category: business and self-employment

What is the GWB in short?

The GWB is the German law that regulates competition, often referred to as the German “antitrust law”.
Its purpose is to:

  • prevent monopolies,

  • stop price-fixing,

  • prevent the abuse of market power,

  • and prohibit collusion between companies.


5 key points small traders should know

1. Verbot von Preisabsprachen – ban on price-fixing

You are not allowed to agree with other traders on a fixed price (e.g. always 5 euros).
Even at a local market or between neighbouring shops, any formal coordination of prices is forbidden.

If you and another trader decide to charge the same price only to avoid competition, you are violating the GWB.


2. Missbrauch einer marktbeherrschenden Stellung – abuse of market power

A company with strong market power (even just locally) is not allowed to deliberately push smaller competitors out of the market.

Example:
A big store drastically reduces prices for a short period in order to drive a new small shop out of business, and then raises the prices again afterwards.

You are protected against such behaviour – and you can file a complaint with the Bundeskartellamt (Federal Cartel Office).


3. Diskriminierungsverbot – non-discrimination in supply

A supplier (Lieferant) is not allowed to charge you significantly higher prices than your competitors for the same quantities and conditions, without a clear and objective reason.

If you feel that a supplier is discriminating against you because your business is small, you can demand a legal explanation.


4. Verbot unlauterer Behinderungen – ban on unfair obstruction

A large trader is not allowed to obstruct you unfairly, for example by:

  • spreading false rumours about you,

  • deliberately interfering with or disturbing your business.

Misleading advertising that mentions you directly or puts you down can be illegal.

The GWB can even protect you if, for example:

  • your shop sign is intentionally damaged or removed,

  • or your Google page is attacked with fake negative reviews.


5. Fusionskontrolle – merger control

This usually does not affect small traders directly, but it can become relevant if you enter a joint venture with another trader.

Certain expansions, mergers or acquisitions must be reported if specific turnover thresholds are exceeded.


When can you contact the authorities?

You can contact the Bundeskartellamt (Federal Cartel Office) if:

  • your business is deliberately obstructed,

  • there is obvious price discrimination,

  • you notice a monopoly, cartel or collusion that harms the local market.

Website:
https://www.bundeskartellamt.de


Summary – key Q&A

  • Does the GWB also apply to small traders?
    Yes, it applies both as protection for you and as a restriction on non-competitive behaviour.

  • Do I need a lawyer to file a complaint?
    Not necessarily – you can submit a complaint online directly.

  • Can I get into trouble for offering very low prices?
    No – unless your intention is unlawful, e.g. to undercut prices temporarily only to drive competitors out of the market.


The editorial team of the website aims to provide accurate and well-researched information based on multiple sources. However, errors may occur, or some details may be incomplete or not fully confirmed. Therefore, please treat the information provided as an initial reference only and always consult the competent authorities and official bodies for binding and up-to-date guidance.

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