FRANCE
French Competition Authority fines four welding electrode producers for collusive tendering
On 16 December 2010, the French Competition Authority imposed fines totalling € 101,000 on four welding electrode producers (Le Bronze Industriel (LBI); Schrub; Ohlmann and Weldur) for colluding on tenders to supply car manufacturers Renault and Peugeot between 2002 and 2005.
In its decision, the Competition Authority found that the welding electrode producers had exchanged price lists before submitting offers to the car manufacturers. The Competition Authority also found that, for the first invitation to tender launched by Renault, LBI, Schrub and Ohlmann allocated among themselves the electrode references according to their turnover realised with Renault in 2001, in order to maintain their respective margins and market share.
When setting the fines, the Competition Authority took into account as an aggravating circumstance the fact that LBI was the leader of the anticompetitive practices. However, LBI benefited from a fine reduction for not having contested the facts. In addition, the Competition Authority significantly moderated the fines imposed on all the producers in order to take into account their serious financial difficulties, due notably to the economic crisis. As a result, the Competition Authority imposed symbolic fines. The Competition Authority thus seems to have taken into account the criticisms made last January by the Paris Court of Appeal, which notably castigated the Competition Authority for not having considered the major effect of the economic crisis on the steel sector and significantly reduced the fines imposed on the producers in this sector (see VBB on Competition, Volume 2010, No. 1).
GERMANY
German Federal Cartel Office imposes fines on chemicals wholesale cartel
On 13 December 2010, the German Federal Cartel Office ("FCO") imposed fines totalling € 15.11 million on twelve companies active in the sector for the wholesaling of chemicals for having engaged in a long-term series of anticompetitive practices. Representatives of these companies are reported to have engaged in price fixing, allocation of quotas and customers in six regional cartels, some of which were found to have lasted for the past four decades. The anticompetitive agreements concerned commodity industrial chemicals, which were distributed directly from the wholesalers' warehouses.
The FCO's investigations were triggered by a leniency application made by Brenntag AG, which as a result has been granted full immunity from fines. All twelve companies fined cooperated with the FCO during the proceedings and their cooperation is reflected in the amount of the fine imposed.
The FCO is continuing its investigations against fifteen other companies in the same sector, mainly in Bavaria and Baden-Württemberg.
OTHER DEVELOPMENT
ROMANIA: On 26 October 2010, the Romanian Competition Council (RCC) imposed a fine of around € 950,000 (RON 4,056,264) on a professional association, the Body of Expert and Licensed Accountants of Romania (CECCAR) for fixing the minimum tariffs applied by its members.
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