BUNDESKARTELLAMT IMPOSES FINES ON STEEL FORGING COMPANIES

04.02.2021

The German Federal Cartel Office (“Bundeskartellamt”) has imposed a fine on three steel forging companies and two senior staff members totaling approximately 35 million Euros for the exchange of competition-sensitive information.

After the investigation, Bundeskartellamt has stated for many years, leading German steel forging companies had meetings up to three times a year, and senior staff has exchanged competition-sensitive information with each other and with other forging companies from other European countries. This included information in particular about the respective cost situation of the companies, their pricing strategies, and concrete negotiations with suppliers and customers. With these meetings, companies aimed to to passing on the companies’ costs for manufacturing forged steel products and any changes in costs in full to their customers.

The companies cooperated extensively with the Bundeskartellamt; therefore, the authority chose to reduce the fines. On the other hand, the Bundeskartellamt did not initiate a proceeding against the foreign forging companies for discretionary reasons.

You can find the Bundeskartellamt’s statement here.

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Zumbul Attorneys-at-Law

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