EU fines 30-firm copper cartel €314m

Europe's top antitrust authority slapped a €314

Europe's top antitrust authority slapped a €314.7 million fine on 30 companies for taking part in a copper fittings cartel, the fifth-biggest penalty ever imposed by EU competition authorities.

Aalberts of the Netherlands received about a third of the total penalty, which was announced today.

The company was fined €100.8 million - almost double its first-half net profit of €51 million.

It said it did not plan to take a provision for the fine as it was investigating whether to appeal.

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The 30 companies belong to the groups IMI, Delta, Advanced Fluid Connections, Legris, Frabo, Mueller, Tomkins, Flowflex, Viegener and Sanha Kaimer as well as Aalberts, the European Commission said.

Britain's IMI and Delta were fined €48.3 million and €28.3 million respectively.

Germany's Viegener was fined €54.3 million and Legris of France €46.8 million.

The Commission said in a statement its investigation had found that companies had met in Paris to discuss prices and had uncovered scribbled notes by British competitors signalling price rises using a specific code for each company.

The cartel took place between 1988 and 2004, with price lists agreed for Germany, Spain, Italy, France, Greece, Britain, Portugal and Sweden. Some of the companies had continued with the cartel or had given misleading information to Brussels after it began probing the industry, resulting in their fines being increased, the Commission said.

"We will not only punish firms severely for cartel behaviour, but also increase the fines for flagrantly continuing after a Commission dawn raid and for providing wrong or misleading information," EU Competition Commissioner Neelie Kroes said. Copper fittings are used in tubes for plumbing, heating and sanitation and their prices were higher because of the cartel.