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French Regulator Fines Schneider Electric, Legrand, Rexel, and Sonepar €470 Million for Price Fixing

By  |  October 30, 2024
France, startups, venture capital, investment, business

France’s competition authority has fined four major electrical equipment companies—Schneider Electric, Legrand, Rexel, and Sonepar—a combined €470 million (approximately $508 million) over allegations of price-fixing. According to Reuters, the fines penalize two separate pricing agreements that allegedly manipulated market prices for electrical equipment over several years.

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    The French Competition Authority detailed that Schneider Electric, one of the largest fined entities, is required to pay €207 million, while Rexel and Sonepar were fined €124 million and €96 million, respectively. Legrand, another major player, was fined €43 million. These agreements allegedly began between Schneider Electric and its distribution partners, Rexel and Sonepar, from December 2012 through September 2018. Another agreement between Legrand and Rexel reportedly lasted from May 2012 to September 2015.

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    Schneider Electric responded to the ruling, asserting that it “firmly disagrees” with the authority’s findings, maintaining that its distribution practices comply with competitive standards. “The company rejects any allegation that its distribution practices are not compliant with competition rules,” Schneider stated, according to Reuters.

    Each of the four companies involved has voiced opposition to the decision. Sonepar has already announced its intention to appeal to the Paris Court of Appeal, underscoring the company’s commitment to challenging the ruling.

    This ruling comes on the same day that Schneider Electric reported a notable 6% rise in third-quarter revenue, reaching €9.3 billion on a reported basis. The company’s steady growth underscores its prominent position in the global market despite recent legal challenges.

    Source: Reuters