Brussels, 20/04/2001 (Agence Europe) - The European Commission has taken a decision noting that Duales System Deutschland AG (DSD), the company that created the "Green Dot" (Der Grüne Punkt) system, restricts competition by its abusive dominant position on the market for the organisation of collection and recycling of sales packaging in Germany. The decision is limited to one provision of DSD's overall function of the DSD system and does not bring into question the existence and overall functioning of the DSD system. The Commission considers that, in some cases, the payment system used by DSD is to the disadvantage of its customers and prevents competitors from entering the market in question. It considers that once DSD has taken the necessary measures to put an end to its abusive behaviour, a favourable decision could be taken concerning the other agreements concluded in the context of the DSD system.
DSD is currently the only company in Germany that uses a system for the collection and recycling of sales packaging over the whole of the country. It made a turnover of DM 4.2 billion in 1998. DSD does not itself collect waste but uses the services of local collecting companies. DSD enjoys an almost monopolistic position with a market share of at least 80%.
The Commission is opposed to a provision whereby DSD customers have to pay fees corresponding to the volume of packaging bearing the Green Dot trademark rather than fees corresponding to the volume of packaging for which DSD is actually providing a take-back and recycling service. According to the Commission, DSD abuses its dominant position when it demands full payment of the fee for the use of its logo "Green Dot" in situations where it provides no service, collection and recycling being undertaken by rivals. The obligation to pay the fee means that clients have no economically realistic possibility of signing contracts with DSD rivals. While paying for the service supplied by DSD rivals, its clients should either pay an additional fee to DSD, or organise separate packaging, distribution and merchandising systems.
Normally, the Commission slaps a fine on a company that has abused its dominant position in this way. In the case in hand, it does, however, recognise that it was not easy for DSD to assess, in the light of earlier Commission decisions and those of the Court of Justice, the compatibility of its conduct with the treaty's rules of competition. Following the clarifications provided in the present decision, the Commission will not, in future, hesitate to engage in an action and, if need be, inflict fines in similar cases, the press release stipulates.