How Section 19a of Germany's Competition Act gives antitrust authorities the power to divest and sanction Big Tech, as the EU slowly rolls out its enforcement

While EU regulators slowly roll out their own enforcement mechanism, Berlin is already holding gatekeepers to account

Financial Times 2023-01-11 Javier Espinoza

Context & Ripple Effects

Berlin's Section 19a is the domestic instrument behind a run of cases the Federal Cartel Office has already opened: an in-depth analysis of Google's data processing terms, a probe of Google News Showcase's publisher terms, and a proceeding against Amazon over anti-competitive practices. What changed with Section 19a is that these probes now sit under a law that lets the authority classify firms as gatekeepers and order divestitures — not just fines after the fact.

First-order effects

Google and Amazon face a regulator that can now move from investigation to structural remedies — divestiture orders and sanctions — on the very data-processing and marketplace practices already under review.
The Federal Cartel Office gains first-mover leverage over Big Tech in Germany while the EU's own gatekeeper enforcement mechanism is still being phased in.

Second-order effects

Big Tech companies that failed to reshape the Digital Markets Act during lobbying must now comply with two overlapping regimes — Brussels' rules and Berlin's faster national track — raising the cost of any single non-compliant practice.
Other EU member states watching Germany act first face pressure to activate their own national competition tools rather than wait for the EU rollout, fragmenting where and how gatekeepers get challenged.

Third-order effects

If national authorities keep outpacing the EU mechanism, antitrust enforcement of platforms shifts from one centralized Brussels regime to a patchwork of national gatekeeper designations — pushing Big Tech toward compliance strategies built for the strictest jurisdiction first.

The trend: Platform regulation is decoupling from Brussels' timeline, as national competition authorities like Germany's use their own gatekeeper powers to set the pace of Big Tech enforcement.

Discussion

@sam1fleming Sam Fleming on x
While EU regulators slowly roll out their own enforcement mechanism, Berlin is already seeking to hold gatekeepers to account https://www.ft.com/...
@marcvanderham Marc van der Ham on x
Can abusive economic practices be stopped and prevented by applying (EU) competition law? This article explains new approaches at the EU & national levels. The aim is to change behaviour to allow innovation and competition, not just impose hefty fines. https://www.ft.com/...
@baldwinre Richard Baldwin on x
“Big Tech is fighting back against the German law. Amazon is appealing against the decision that it is a platform of “paramount significance”, arguing that it already competes with “many established, successful German and international companies” • https://www.ft.com/... https://…
@marcvanderham Marc van der Ham on x
I agree with the position of the Dutch competition authority. The Digital Markets Act (DMA) at the EU level will set the European Commission's remit. National authorities will focus on non-DMA matters: not gatekeepers under the #DMA, but those with a dominant position.
@philippbohn Philipp Bohn on x
🇩🇪Next: How Germany becomes Europe's Big Tech incubator. https://twitter.com/...
@astaniscia86 Giulio S. on x
European regulators put a lot of emphasis on changing the way tech companies do business. Sorry consumers but the main goal is to protect national political interest. https://www.ft.com/... https://twitter.com/...
@1br0wn Ian Brown on x
“I don't think that fines change behaviour,” Andreas Mundt @Kartellamt says. “If you want to see a change of conduct, then you need to change the behaviour and make it competitive.” #DMA https://twitter.com/...

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