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EU: Goldman Sachs fights cartel fine in General Court

By  |  June 16, 2014

Goldman Sachs has reportedly appealed a fine issued to the company by the European Commission for cartel behavior conducted by its power cable company, a case experts say highlights the risk taken by private equity firms when they acquire firms embroiled in anticompetitive behavior.

According to an unnamed source, the US investor appealed the $51 million fine to the General Court. Goldman Sachs was fined by the European Commission last April after Italy-based Prysmian was fond to have manipulated cable prices by the European Commission. Goldman Sachs acquired Prysmian in 2005, but divested the Italian cable maker in 2010.

The Commission found Prysmian had colluded to fix high-voltage power cable prices since 1999 for nearly a decade.

Experts say the Commission’s fine on Goldman Sachs represents EU regulators’ willingness to sanction not only cartel members, but also their owners, which raises the risk of investors.

Full content: Wall Street Journal

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