Germany: Highest fine in Bundeskartellamt history to be imposed on cement cartel
The Bundeskartellamt has welcomed the decision of the Federal Court of Justice (BGH) to impose fines on a cement cartel. Andreas Mundt, President of the Bundeskartellamt believes that this decision will create the necessary legal security for the Bundeskartellamt to calculate its fines. On a clear statement from the BGH, the Bundeskartellamt will adjust its guidelines on the calculations of fines to the decision.
In the 1990’s, leading producers of cement had formed a cartel to carve up the German cement markets among themselves. For this reason, the Bundeskartellamt imposed fines on several companies in 2003; these were, among others, Holcim, HeidelbergCement, Lafarge Zement and Schwenk Zement or, respectively, their predecessors. These fines were later contested by the companies to the Düsseldorf Higher Regional Court which decided in 2009 that fines amounting to 278.7 million Euros should be imposed on the cartel members. The BGH has now confirmed this decision and merely reduced the fine by 5% on account of the long duration of the proceedings.
The proceedings have therefore now been concluded with fines on these and other companies amounting to a total of 380 million Euros – the highest fine ever imposed in a Bundeskartellamt proceeding.
In the proceedings the BGH also had to decide on the constitutionality of the key provision on the fining of cartel law violations. In 2005, the level of fines imposed for cartel law infringements was harmonized with European legal practice in an amendment to the German competition law (Gesetz gegen Wettbewerbsbeschränkungen, GWB). Since then a fine imposed on a company can amount to up to 10% of its turnover (Section 81 (4) GWB). The provision was disputed among legal scholars. The BGH has now confirmed the constitutionality of this fine provision; it has added the instruction that the limitation of the fine to 10% of the turnover of the respective company should not be regarded as a capping threshold, as is done in European cartel law, but as a maximum value within a range of fines. The amount of fine imposed in the present case was not influenced by the differing methodology.
President Mundt: “The calculation method prescribed by the BGH will probably lead to large companies facing higher fines in the future.”
Full Content: BHG
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI