The arms boom is further strengthening Rheinmetall – but that is exactly what is also attracting criticism. An antitrust expert warns of a growing dependence on the company.
• Expert warns of Rheinmetall’s growing market power
• Bundeswehr According to the report, there are sometimes no real alternatives
• Regulation of dominant defense companies could become more difficult
Antitrust expert sees growing dependence on Rheinmetall
Rheinmetall’s strong expansion is also increasingly giving rise to antitrust discussions. As the business magazine Capital reports, experts warn of the Düsseldorf-based defense company’s growing market power. The background is the massive expansion of business since the start of the Russian war of aggression against Ukraine in 2022.
Rupprecht Podszun, law professor at Heinrich Heine University Düsseldorf and member of the Monopolies Commission, said in an interview with the magazine that the “turning point” is putting individual players in a position that could pay off for years to come. This could result in strong dependencies. Rheinmetall has the potential to develop into a “kind of Google of the defense industry”.
Rheinmetall continues to expand its position
In fact, Rheinmetall has massively expanded its position in recent years. According to Capital, under CEO Armin Papperger, the group has practically doubled its sales by 2025. At the same time, the company expanded into additional defense areas.
According to the report, Rheinmetall now has a dominant position in Germany, especially in the area of artillery ammunition. There are hardly any real alternatives for the Bundeswehr in several areas. According to statements from the industry, the company is both expensive and dominant in the market, particularly when it comes to programmable ammunition that detonates in the air.
Warning of difficult regulation
Podszun also warned Capital that such a market position could make regulation more difficult in the long term. Companies on which states or armed forces are heavily dependent can no longer be easily regulated. This effect could become even more pronounced in the coming years, particularly as a result of the billion-dollar European rearmament programs.
According to Capital, Rheinmetall itself did not comment on the allegations. However, the group has long been pointing to the sharp increase in demand for ammunition, military vehicles and defense systems as a result of geopolitical tensions and is significantly expanding its production capacities worldwide.
Claudia Stephan, editorial team at finanzen.net
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