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EU revises fines for gigantic pre-stressing steel cartel

Monday, 11 October 2010 15:56:57 (GMT+3)   |  
       

The European Commission (EC) has recently announced its revision of the fines it determined in June for 17 producers of pre-stressing steel based in EU member states for operating a cartel between January 1984 and September 2002 for more than 18 years. The total amount was changed from €518.5 million to a total of €458.4 million.

The EC's decision concluded that the producers from all EU member states, except for the United Kingdom, Ireland and Greece, violated the European Union's ban on cartels and restrictive business practices by establishing a "price-fixing and market-sharing cartel", also affecting Norway.

According to the EC report, during 18 years the companies fixed quotas and individual prices, allocated customers and exchanged significant commercial information. Moreover, they controlled the agreements relating to prices, the customers and the quotas thanks to a system of national coordinators and bilateral contacts.

Following further studies on the fines determined in June, the EC determined the following amounts (Within each group there may be individual companies that are each liable for part or the total amount. In total, there are 36 companies concerned):


Company

Fine (€)*

1.

ArcelorMittal

230,400,000

2.

Emesa/Galycas/ArcelorMittal

36,720,000

3.

GlobalSteelWire/Tycsa

54,389,000

4.

Proderac

482,250

5.

Companhia Previdente/Socitrel

12,590,000

6.

Fapricela

8,874,000

7.

Nedri/HIT Groep

6,934,000

8.

WDI/Pampus

46,550,000

9.

DWK/Saarstahl

0

10.

voestalpine Austria Draht

22,000,000

11.

Rautaruukki/Ovako

4,300,000

12.

Italcables/Antonini

2,386,000

13.

Redaelli

6,341,000

14.

CB Trafilati Acciai

2,552,500

15.

I.T.A.S.

843,000

16.

Ori Martin/Siderurgica Latina Martin

19,800,000

17.

Emme Holding

3,249,000

TOTAL

458,410,750

The cartel broke up in 2002 after German company DWK/Saarstahl revealed its existence under an EU leniency program which was introduced that year. The company was spared a fine for being the first to come clean.

The product in question is used in the construction sector with concrete.


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