VARIOUS: EU fines gas-insulated switchgear cartel allegedly led by Siemens

Record ID: 474447

  • Title: VARIOUS: EU fines gas-insulated switchgear cartel allegedly led by Siemens
  • Date: 25th January 2007
  • Summary: (EU)MUNICH, GERMANY (FILE - NOVEMBER 15, 2006)(REUTERS) EXTERIOR OF SIEMENS HEADQUARTERS SIEMENS LOGO VARIOUS EXTERIORS VARIOUS EXTERIORS OF SIEMENS BUILDINGS (GOOD SHOTS OF EXTERIORS OF SIEMEN COMPANY BUILDINGS)
  • Embargoed: 9th February 2007 12:00
  • Keywords:
  • Topics: European Union,Economic News
  • Reuters ID: LVA1TKYYO7JBVG0K37JIX148Q4QD
  • Story Text: The European Commission on Wednesday, (January 24) imposed
    7 million euros (977 million US dollars) against makers of electrical power system switchgear, after finding they had fixed prices.
    Germany's Siemens was fined 396.6 million euros in the case involving gas-insulated switchgear, the highest for a single offence by a single company. Siemens said it would appeal.
    "The Commission has fined 11 groups of companies 750 million, 712,000 and 500 euros (750.712.500 euros) for participating in a cartel affecting gas insulated switch gear which is equipment used in electricity substations. This is a cartel that lasted for more than 16 years and is regarded by the commission as a very serious infringement," said Jonathan Todd the spokesman for the EU Competition Commissioner Nelly Kroes
    Japan's Mitsubishi Electric was fined 118.6 million euros, Toshiba Corp. 91 million euros and Hitachi Ltd. 51.8 million euros.
    Alstom of France has sold the unit that participated in the cartel, but was fined 65 million euros. Areva bought the Alstom unit without knowing about the cartel and therefore was fined only 53.5 million euros.
    Other fines, in euros, were: Fuji of Japan, 3,750,000; Japan AE Power Systems, 1,350,000; Schneider of France, 8,100,000 and Siemens of Austria, 22,050,000.
    "The total fines imposed in this case are the largest the Commission has ever imposed on a single cartel. It's slightly less than the total of the vitamins cartel cases but that was 8 separate cartels. The fine on Siemens of over 396 million euros is the largest ever fine imposed by the commission on a single company for participating in a single cartel . The reason why the fine on Siemens is so large is because they played a leadership role organising the cartel and the duration of their participation in the cartel as well as their very large size," Todd said
    Gas insulated switchgear is heavy, expensive equipment that controls the flow of energy in electrical power systems. It is sold as a distinct product, and as part of fully functional power sub-stations.
    Kroes said in a written statement that the Commission had put an end to a cartel which had cheated public utility companies and consumers for more than 16 years.
    Although it is the highest fine for an individual violation by companies, the overall fine for the sector is behind the record 790.5 million euros imposed by the EC on a vitamin cartel in 2001.
    Siemens said that it would go to the European Court of Justice to take legal action against antitrust fines charged by the European Commission.
    The president of Siemens' Power Transmission and Distribution unit, Udo Niehage, said the fines were completely exaggerated and Siemens couldn't understand how the Commission arrived at such amounts.
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