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EU: Commission planning Goldman Sachs fine that tests jurisdiction limits

 |  December 18, 2013

Reports say the European Commission is set to fine Goldman Sachs early next year following an investigation into underwater power cable collusion, a sanction that will test the Commission’s jurisdiction over private equity investors.

The Commission conducted a probe into an alleged power cable cartel that allegedly includes Italy-based cable maker Prysmian; Goldman Sachs acquired the Italian company in 2005.

Among the accused include nearly one dozen companies following a four-year investigation, according to sources. But Goldman Sachs denied any knowledge of such accused price-fixing or other anticompetitive behavior before it acquired the Italian firm.

The case will test the Commission’s jurisdiction over such private equity firms, which have so far argued that they should be treated differently than other companies in such investigations.

Full Content: HITC Business

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