Due to its insensitivity to corrosion, textile CFRP (carbon fibre reinforced polymer) reinforcement enables the construction of thin-walled concrete structures such as shells, vaults and girder webs with minimal concrete cover. In contrast to tensile and flexural behaviour, strutting and compressive membrane action of cracked thin-walled carbon reinforced concrete (CRC) elements and the interaction of compressive stresses with transverse tensile loading have not yet been investigated. While for steel reinforced concrete components, extensive biaxial testing has shown a significant reduction of concrete compressive strength as a function of the lateral tensile stress (compression softening), the effect of biaxial loading on CRC structures has not been quantified yet. However, a different behaviour is expected due to different bond properties of steel and CFRP in concrete, smaller crack spacings and the tendency of the CFRP reinforced concrete for in-plane splitting. This paper presents an extensive experimental campaign for investigation of the influence of transverse tension and cracking on the compressive strength of CRC with refined measurement techniques. Based on a literature review on compressive softening behaviour and conventional test setups for steel reinforced concrete, a novel test setup was developed. The phenomenology of compression softening in CRC as well as the main factors influencing compressive membrane behaviour are highlighted. Based on the experimental findings a constitutive law for compression softening behaviour of CRC is proposed.