German Cartel Authorities Reviewing DSD Program

German government agency working with DSD on Green Dot Program.

The German Cartel Office is deciding whether to delay a decision on Duales System Deutschland AG, and whether the DSD is in compliance with Germany’s antitrust laws.

The German Packaging Ordinance and the German cartel authorities require Duales System Deutschland AG to award its recycling contracts in a process that ensures fair competition. On this basis, the procedure for awarding contracts for glass and lightweight packaging was initiated in March, following discussions with the Federal Cartel Office. The deadline for submitting tenders was May 19, 2003. The submitted tenders are currently being reviewed.

The review process has shown that for a large number of tendering regions, both for glass and lightweight packaging, only one tender was submitted. A large number of submitted tenders were also not economically feasible. Based on the terms and conditions of the tender procedure, Duales System has the option either to cancel the call for tenders or to enter into negotiations in both cases. Given that the new service contracts are scheduled to become effective on January 1, 2004, Duales System Deutschland AG has decided to enter into negotiations with the respective bidders in both cases. This procedure has been agreed with the Federal Cartel Office.

The awarding of contracts for the glass material fraction is expected to commence at the end of July. Contracts for the lightweight packaging material fraction will probably be awarded from mid-August.