These cases have in common that: (a) all of the investigations began by a leniency application; (c) all of the cases closed by way of settlement decisions; and (b) they all relate to cars and trucks, which Commissioner Vestager described as a key sector for European industry and consumers.
The first case concerns intercontinental maritime transport of vehicles (maritime car carriers). The second case concerns supply of spark plugs which are used to ignite the petrol in a car engine (spark plugs). The third and the fourth cases relate to supply of braking systems.
Maritime car carriers
The Commission found that, from October 2006 to September 2012, one Chilean, one Norwegian/Swedish, and three Japanese carriers participated in a cartel in the market for deep sea transport of new cars, trucks and other large vehicles (such as combine harvesters and tractors), on various routes between Europe and other continents. The companies coordinated prices, allocated customers and exchanged commercially sensitive information about elements of the price, such as charges and surcharges added to prices to offset currency or oil prices fluctuations. They also agreed to maintain the status quo in the market and to respect each other's traditional business on certain routes or with certain customers, by quoting artificially high prices or not quoting at all in tenders issued by vehicle manufacturers.
A total of €395 million fines were imposed, calculated on the basis of the Commission's 2006 Guidelines on fines, with all five of the carriers receiving reductions under the Commission's 2006 Leniency Notice (ranging between 20% and 100%) and the Commission's 2008 Settlement Notice.
Spark plugs
The Commission found that, from 2000 to 2011, one German and two Japanese companies participated in a cartel concerning supplies of spark plugs to car manufacturers in the EEA. In order to avoid competition, the companies exchanged commercially sensitive information and in some instances agreed on the prices to be quoted and the share of supplies to certain customers, and to respect historical supply rights.
A total of €76 million fines were imposed, calculated on the basis of the Commission's 2006 Guidelines on fines, and again, all participants received reductions pursuant to the Commission's 2006 Leniency Notice (between 28% and 100%) and the Commission's 2008 Settlement Notice.
Braking systems
The Commission found two cartels relating to braking systems: hydraulic braking systems (HBS) and electronic braking systems (EBS). The Commission found that: from February 2007 to March 2011, one US and two German companies discussed general sales conditions for the supply of HBS to two customers, Daimler and BMW; and from September 2010 to July 2011, two Germany companies coordinated their behaviour in relation to a tender for EBS for Volkswagen. In both cartels, the car part suppliers aimed at coordinating their market behaviour by exchanging sensitive information, including on pricing elements.
A total of €75 million fines were imposed, calculated on the basis of the Commission's 2006 Guidelines on fines, with all participants benefiting from reductions under the Commission's 2006 Leniency Notice and the Commission's 2008 Settlement Notice.
These cases continue the Commission's focus on the car and trucks industries, with 10 previous decisions having been reached in relation to the sector. Commissioner Vestager confirmed the Commission will continue to focus on the sector for so long as details of breaches of competition law continue to be uncovered. In this connection, the Commission's investigation into several German car manufacturers continues.
The settlement decisions are the 26th, 27th and 28th settlement decisions since the introduction of the settlement procedure for cartels in June 2008. Under a settlement procedure, companies that have participated to a cartel acknowledge their participation in the infringement and their liability for it, and in return receive a 10% reduction in fines. This benefits the Commission as well since it can reduce the length of the investigation and thereby free up resources to tackle other suspected cases.
Given the number of cases closed by a settlement decision it would be fair to say that the settlement procedure as a "success story" as referred to by the Commission. However, the settlement procedures are not immune from problems. In particular, where not all of the parties to a cartel choose to settle ("hybrid" cases), it can raise some complex issues. Settlement, if the procedure is initiated by the Commission, is an option available to companies involved in a cartel to reduce fines and to avoid a prolonged investigation, but parties need to consider carefully before doing so especially where some parties may not agree to settle.
With thanks to Akihiro Kudo of Ashurst for his contribution.
