Germany Proposes Overhaul Of Merger Control Thresholds And Enforcement

The German government published a draft amendment to the German competition law, proposing significant changes to merger control with an increase of the turnover thresholds and an expansion of the transaction value threshold coupled with a novel two-step notification procedure. They also propose new procurement screening powers for the Federal Cartel Office to detect bid-rigging.

On June 4, 2026, the German government published an initial draft of a 12th Amendment to the Act Against Restraints of Competition, with the stated intention to strengthen competition enforcement while reducing regulatory burdens.

Higher Merger Control Thresholds

All turnover-based filing thresholds would increase by approximately 50%: The worldwide threshold rises from EUR 500 million to EUR 750 million (USD 865 million), the first domestic threshold from EUR 50 million to EUR 75 million (USD 86.5 million), and the second domestic threshold from EUR 17.5 million to EUR 20 million (USD 23.1 million). The government estimates this will reduce annual filings by roughly 13–14% (around 120 out of 900 annual filings in recent years).

Expanded "Killer Acquisition" Threshold

The EUR 400 million transaction value threshold is retained but expanded to cover acquisitions where the target is not yet active in Germany but is likely to become so in the future. The intention is to close an alleged enforcement gap where the existing domestic activity requirement prevented a review, further expanding the scope of the provision. For transactions caught solely by this threshold, a new procedure requires only a brief notification ("Anzeige"); if the Bundeskartellamt does not request a full filing within two weeks, the merger is deemed cleared.

Other Key Measures

The Bundeskartellamt gains authority to systematically screen public procurement data for bid-rigging indicators without requiring prior suspicion, responding to concerns that cartels in public tenders inflate prices by 15–20%.

The draft also extends the energy sector abuse control regime through 2032, introduces an eight-year term limit for the Bundeskartellamt's president, expands advisory powers to cover vertical agreements, strengthens third-party appeal rights against ministerial merger authorizations, and mandates fully digital merger filings from 2028.

Practical Implications

Although many smaller transactions will escape filing obligations, acquirers of innovative targets in digital and technology sectors should note the broader reach of the transaction value threshold and the two-step notification procedure. The draft is expected to undergo further consultation before being finalized.

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