From REWE International AG's point of view, this penalty for a formal offence bears no relation whatsoever to the allegations. It may have far-reaching negative implications for Austria as a business location beyond REWE International AG as the company directly affected.
REWE International AG clarifies that it relied on the justifiable legal opinion that the lease of the affected location in Wels is not subject to registration when proceeding with the opening and at the given time. Subsequent notification took place - and the takeover of the location was authorised.
The following should be noted from the perspective of REWE International AG: The alleged offence - the failure to report the location - has not led to any economic advantages for REWE International AG. A pure formal offence is being punished here. From REWE International AG's point of view, the penalty imposed is therefore disproportionate to the offence, especially in comparison to previous cartel penalties imposed in Austria for price fixing. A comparable supermarket would need more than 50 years to earn a sum equivalent to the fine imposed. It is as if someone were obliged to pay a fine equivalent to the value of a new car for filling in a parking ticket incorrectly in order to demonstrate that parking tickets must be filled in correctly.
Irrespective of the possibility of further legal action, REWE International AG makes it clear that the high penalty payment will not be passed on to employees or customers. ‘We will find other ways to deal with this loss,’ said the management of REWE International AG. ‘We will shoulder any penalty, neither customers nor employees will be burdened by it.’ There will be no staff cuts - i.e. reductions in hours or job cuts - in the company. Any penalty payment will also not be passed on to our customers. ‘Our aim remains to offer affordable food of the highest quality, and we will continue to fulfil this responsibility.’
Finally, this decision by the OGH also raises fundamental questions for Austria as a business location. Companies must be able to operate in a predictable environment. The disproportionality of this penalty is a ‘demonstration’ on behalf of the entire economy. Offences should be punished, that is beyond discussion. However, such a draconian level of punishment in order to achieve deterrent effects is detrimental to Austria as a business location in the long term. Against this background, there is a need for an objective debate on the legal framework conditions for companies in Austria.
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