European Commission fines lift manufacturers
The European Commission has imposed fines on ThyssenKrupp (FWB: TKA; LSE: THK) and four other lift manufacturers in an antitrust case in an effort to make it more expensive for cartels to violate competition rules. The companies involved did business in Germany, the Netherlands, Belgium, and Luxembourg between 1995 and 2004, coordinating bids so that designated groups would win specific contracts. The European Union’s competition commissioner said that the lift and escalator cartel had “ripped off” taxpayers, the government, and private customers with its practices.
The improper actions by the cartel extended not only to supply of their product initially, but also to later maintenance of the lifts and escalators they installed. In addition to the fines, the Commission also urged customers to renegotiate their contracts with the companies involved and said that there could be grounds for lawsuits for damages caused through the cartel’s misbehavior.
Among the companies found to be involved in the cartel were ThyssenKrupp, which was fined €479.7 million; Otis Elevators, a division of United Technologies (NYSE: UTX), fined €224.9 million; Schindler (SWX: SCHNEU), fined €143.7 million, and Kone (OMXHelsinki: KNE), fined €142.1 million. All the companies that received fines said that they were examining the ruling. United Technologies said that Otis will appeal the judgment.
The Commission pointed out that it was itself a victim of the cartel, which had installed lifts in its headquarters as well as at the European Court of Justice in Luxembourg.
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