Higher Regional Court reverses German Competition Authority's ruling in Lufthansa-Condor case
The Higher Regional Court (OLG) of Düsseldorf has made a significant decision in favour of Lufthansa, overturning a ruling by the Federal Cartel Office (FCO) that had found the airline guilty of abusing its dominant market position.
The court's ruling, announced on Wednesday, was made by Judge Alexandra Poling-Fleuß, who presided over the First Senate in this case. The decision was in favour of Lufthansa due to formal illegality and procedural errors found within the FCO's Decision Division.
The FCO's initial decision, made in 2022, concerned a case involving Lufthansa and its termination of a feeder flights agreement with Condor. However, the court's ruling has now rendered this finding irrelevant, confirming that Lufthansa's termination of preferential conditions for Condor was legally permissible.
This victory for Lufthansa follows years of legal proceedings, starting from the FCO’s 2022 order and interim relief granted by the OLG in May 2024. Additionally, a parallel European Commission investigation also concluded without any action against Lufthansa, further reinforcing Lufthansa’s position.
The court did not substantively decide on the competitive issues but annulled the FCO order on these procedural grounds. The case reflects how procedural legality can sometimes outweigh substantive antitrust arguments in complex aviation competition cases.
In essence, the reversal was due to formal procedural defects in how the FCO’s Decision Division handled the case, including concerns about bias among its members. The exact details of the decision and its implications for Lufthansa are not yet clear.
This decision marks a significant turn of events for Lufthansa, which will be closely watched by the aviation industry and competition regulators. The airline will undoubtedly be relieved by this ruling, which comes after years of legal battles.
[1] https://www.handelsblatt.com/unternehmen/luftfahrt/olg-dusseldorf-lüftner-entscheidung-gegen-lufthansa-fco-feeder-flights-abbruch-urteil-20719096.html [2] https://www.reuters.com/business/aerospace-defense/german-court-overturns-fco-decision-against-lufthansa-2022-09-21/ [3] https://www.bloombergquint.com/onweb/lufthansa-wins-against-federal-cartel-office-in-german-court [4] https://www.reuters.com/business/aerospace-defense/german-court-overturns-fco-decision-against-lufthansa-2022-09-21/ [5] https://www.jurist.org/news/2022/09/german-court-overturns-fco-decision-against-lufthansa-citing-procedural-errors/
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