IP/10/790 Brussels, 23 June 2010

Antitrust: Commission fines 17 bathroom equipment manufacturers Euro 622 million in price fixing cartel

The European Commission has fined 17 bathroom equipment manufacturers a total of Euro 622,250,783 for a price fixing cartel covering six EU countries. A large number of household names are among the 17 undertakings fined: Artweger, Cisal, Dornbracht, Duravit, Duscholux, Grohe, Hansa, Ideal Standard, Kludi, Mamoli, Masco, Roca, RAF, Sanitec, Teorema, Villeroy & Boch and Zucchetti. The 12 year cartel covered ceramics such as sinks, baths, taps, and fittings. Masco received full immunity from fines under the Commission's Leniency Programme, as it was the first to provide information about the cartel. The fines of five undertakings were reduced because of their likely inability to pay the fine given their financial situation.

"These 17 companies fixed prices for baths, sinks, taps and other bathroom fittings for 12 years in six countries covering 240 million people. The cartel will have harmed businesses such as builders and plumbers and, ultimately, a large number of families. However, as the objective of anti-cartel enforcement is not to precipitate the fall of companies in financial difficulties, the Commission reduced the fines on five companies to a level they could afford. Companies should be in no doubt that the Commission will continue its fight on cartels and the level of fines will continue to be such that it should dissuade them from engaging in illegal behaviour in the first place," said Joaquín Almunia, Commission Vice President and Competition Commissioner.

The Commission decision shows that between 1992 and 2004, 17 companies coordinated the sales price for bathroom fixtures and fittings in Germany, Austria, Italy, Belgium, France and The Netherlands. The coordination took place during meetings of 13 national trade associations in Germany (over 100 meetings), Austria (over 80), Italy (65), and also Belgium, France and The Netherlands, and in bilateral contacts. It consisted of fixing price increases, minimum prices, and rebates, and exchanging sensitive business information.

The practices are very serious infringements of the EU competition rules and prohibited by Article 101 of the EU Treaty.

In setting the fines, the Commission took into account the affected sales of the companies involved, the very serious nature of the infringement and its long duration.

The fines are as follows:

Name reduction Fine* (Euro)
Artweger (AT)   2,787,015
Cisal (IT)   1,196,269
Dornbracht (DE)   12,517,671
Duravit (DE)   29,266,325
Duscholux (AT)   1,659,681
Grohe (DE) 30% 54,825,260
Hansa (DE)   14,758,220
Ideal Standard (US) 30% 326,091,196
Kludi (DE)   5,515,445
Mamoli (IT)   1,041,531
Masco (US) 100% 0
RAF (IT)   253,600
Roca (ES)   38,700,000
Sanitec (SU)   57,690,000
Teorema (IT)   421,569
V&B (DE)   71,531,000
Zucchetti (IT)   3,996,000
TOTAL   622,250,783

(*) Legal entities within the undertaking may be held jointly and severally liable for the whole or part of the fine imposed.

Masco, a US company whose main subsidiaries are Hansgrohe and Hüppe, got full immunity under the Leniency Programme as it was the first to provide information about the cartel to the Commission.

The Commission also took into account the cooperation of Grohe of Germany and Ideal Standard of the US and reduced their fines by 30 %.

More exceptionally, the fines of three companies were reduced by 50% and those of another two by 25% given their difficult financial situation.
A total of ten companies claimed they would be unable to pay a fine: to assess their claims, the Commission looked at recent financial statements, provisional current year statements and future projections, several financial ratios that measure a company's solidity, profitability, solvency and liquidity, and relations with banks and shareholders. The Commission also looked at the social and economic context of each company. Finally, the Commission assessed whether the companies' assets would be likely to lose significant value if the companies were to be forced into liquidation as a result of the fine. The analysis is company-specific and aims to be as objective and quantifiable as possible to ensure equal treatment and preserve the deterrence aspect of EU competition rules.

欧州委、カルテル制裁金を5社減額 倒産の恐れ考慮


 カルテルを結んでいたのは、アイディール・スタンダード(米国)、V&B(ドイツ)など米欧の17社。1992年から2004年にかけてド イツなど欧州6カ国で、洗面台、浴槽、蛇口などの価格を調整、EU競争法(独占禁止法)に違反したと欧州委は判断した。

 浴室関連の設備メーカーは比較的規模の小さい企業が多く、17社のうち10社が「制裁金を支払えない」と申し立てたという。08年以降の金 融危機で住宅投資が減少、企業収益が悪化していた背景もあるとみられる。

 アルムニア欧州委員(競争政策担当)は記者会見で「制裁金の減額はあくまで例外措置」と説明。各社ごとの経営状態を精査した結果、3社の制 裁金を当初の金額から50%、2社の制裁金を25%それぞれ減額した。減額の対象企業は明らかにしていない。

"The objective of anti-cartel enforcement is not to precipitate the fall of companies in financial difficulties," said Almunia.

The overall decision on who could qualify for fine reductions was taken based on several factors. The commission looks at annual financial statements, including the provisional one for the current year, ratios that look at profitability and solvency as well as the company's relationship with its banks and shareholders, Almunia said. Based on the circumstances of this case, "we believe that this fine is excessive," said Wabco's CEO Jacques Esculier. The company has strong grounds to appeal the fine although it is still waiting to see the full judgment before deciding, Esculier added.