Gleiss Lutz successfully represented the Swiss Sonova Holding AG (formerly: Phonak AG) in proceedings before the Federal Court of Justice. In its decision of Thursday, May 6, the FCJ reversed a decision of the Federal Cartel Office, that had been confirmed by the Higher Regional Court of Düsseldorf in the appellate instance, which in 2007 had prohibited Sonova 2007 from acquiring the “Hearing Aids” business (GN ReSound) of Danish competitor GN Store Nord A/S.
In its decision imposing a prohibition, the Federal Cartel Office expressed the opinion that the merger would promote, on the German market, the emergence of a dominant oligopoly of the leading three hearing aid manufacturers Phonak/Sonova, Siemens and Oticon. The FCJ has now rejected this decision as incorrect.
This decision of the FCJ has landmark character: For the first time, the highest court for cartel matters carried out a full review of the appraisal of the facts by the Federal Cartel Office and the Higher Regional Court, and reversed the decision of the court of first instance with respect to a point that had previously been regarded as “irreversible”.
Sonova and GN had already signed the merger project in October 2006. The deal was subject to the consent of the cartel authorities in several countries.
Gleiss Lutz provided Sonova with comprehensive advising in the proceedings before the Federal Cartel Office, the Higher Regional Court of Düsseldorf and the Federal Court of Justice. The lead lawyers were Prof. Dr. Rainer Bechtold and Dr. Ulrich Denzel (both partners, antitrust, Stuttgart).
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