REWE International: Draconian punishment hits waves in Austria's business location!

REWE International: Draconian punishment hits waves in Austria's business location!

Wels, Österreich - The supermarket chain REWE International AG is currently in focus on a drastic judgment of the Supreme Court (OGH). The OGH has increased the fine, originally imposed against the company for a formal violation - the non -report of a location - from 1.5 million euros to astonishing 70 million euros. This judgment has already caused a sensation because Rewe emphasizes that the accusation has not led to any economic advantages for the company. The incident goes back to 2018 when the subsidiary Merkur Warenhandels AG (now Billa Plus) took over sales areas in Welas Park shopping center in Wels, without initially registering with the Federal Competition Authority (BWB). Rewe now questions the proportionality of this high punishment, which the company perceives as "draconian", and points out that the procedure always rely on a reasonable legal opinion that said that the rental was not subject to registration. This reasoning brings Rewe in a statement in which you also illustrate the draconian amount of the punishment with the comparison of a disproportionate parking fees.

reactions and effects on business activity

Neither Kustom: Inside nor employees: According to the REWE management, the inside will be financially affected by this punishment. The company plans to wear the punishment without making price increases or personnel savings. This was emphasized in a response to the concerns regarding the economic consequences for Austria, where the strict handling of the antitrust laws also raises fundamental questions about the economic environment. In this high financial burden, REWE International AG not only sees an unequal punishment for a relative -ely offense, but also a questionable signal effect for companies in Austria. Both the companies and the government are required to discuss the legal framework for fair competition in business.

The company also plans to consider all possible legal steps in order to act against the judgment. The case could draw large circles and have an impact on the future handling of similar procedures in Austria, since Rewe not only sees itself as a sole proprietorship, but also occurs for the entire economy and the applicable rules in the industry. In addition, it is discussed whether a factual debate about the appropriateness of punitive measures is necessary to ensure a predictable business model in Austria, as is now also explained in Rewe's statement.