Record fine for engineering companies

30 Apr 2007

Chaiman of the Czech office for the Protection of Competion (UOHS) Martin Pecina has reduced in his second instance decision the record fine imposed on 16 international engineering companies. The verdict has taken effect and the companies can turn to the Regional Court in Brno.

Companies were fined for long-term international cartel agreement. The overall fine of Kc941.88m remains the highest in the UOHS history despite a decline from Kc979m. The UOHS lowered the fine in the case of Areva to prove turnover that is decisive for the size of the fine (Areva will pay Kc10m instead of Kc28m). Siemens AG succeeded as well (Kc107.25m instead of the original fine of Kc126.6m). The Office shortened the period of its participation in the cartel by one year.

The UOHS concluded that the companies coordinated their price bids in tenders for gas insulated switchgear projects in order for all of them to win some of the contracts. The agreement was applied almost all over the world since 1988. Swiss company ABB which was also involved in the cartel has not been fined because it informed about the cartel according to leniency programme.

Fines

ALSTOM (Société Anonyme)	85.581.000,- CZK
AREVA T&D SA	69.552.000,- CZK
AREVA T&D AG	58.926.000,- CZK
AREVA T&D Holding SA	10.000.000,- CZK
Fuji Electric Holdings Co., Ltd.	44.408.000,- CZK
Fuji Electric Systems Co., Ltd.	44.408.000,- CZK
Hitachi Ltd.	54.600.000,- CZK
Hitachi Europe Limited	54.600.000,- CZK
Japan AE Power Systems Corporation	44.408.000,- CZK
Mitsubishi Electric Corporation	75.348.000,- CZK
Toshiba Corporation	70.762.000,- CZK
Siemens AG	107.248.000,- CZK
Siemens Aktiengesellschaft Österreich	88.816.000,- CZK
VA Tech Transmission & Distribution GmbH & Co KEG	44.408.000,- CZK
Siemens Transmission and Distribution Limited	44.408.000,- CZK
Nuova Magrini Galileo S.p.A.	44.408.000,- CZK
total	941.881.000,- CZK

External Relations Department