Reply #65: Brussels imposes €992m fine on lift cartel [View All]

[Ghost Dog]

http://www.ft.com/cms/s/8ee3b9ac-c1f1-11db-ae23-000b5df10621.html

The European Union’s top antitrust regulator on Wednesday slapped a record €992m fine on ThyssenKrupp and four other lift manufacturers, in the latest sign that the Brussels watchdog is drastically ramping up the financial pain for companies that violate competition rules.

It was the highest penalty imposed by the European Commission, topping a previous record set only last month. Brussels hopes that the recent increase in antitrust fines will deter companies from abusing the law and encourage people involved in cartels to blow the whistle on co-conspirators in exchange for immunity.

Neelie Kroes, the EU competition commissioner and the ­official behind Brussels’ get-tough approach, said the lift and escalator cartel had behaved “outrageously”, while her spokesman said taxpayers, public authorities and other customers had been “ripped off big time” by the cartel.

ThyssenKrupp, the German engineering group, received the toughest penalty, €479.7m ($630m, £322.5m). Otis, a unit of US group United Technologies, was fined €224.9m, Schindler of Switzerland was given a €143.7m penalty and Finland’s Kone was ordered to pay €142.1m. Mitsubishi’s Dutch subsidiary was fined €1.8m.

Ms Kroes said: “The damage caused by this cartel will last for many years because it covered not only the initial supply but also the subsequent maintenance of lifts and elevators. For these companies the memory of this fine should last just as long.”

The Commission said the lifts installed in its own headquarters as well as at the European Court of Justice in Luxembourg were covered by the cartel. It urged customers of the companies involved in the agreement to renegotiate their contracts, and said they might have the right to sue for damages.

/...