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Brrussels -The European Commission fined 17 steel producers a total of €518m on Wednesday for running a price-fixing cartel, with industry giant ArcelorMittal hit the hardest.
The European Union's competition watchdog said the companies ran a cartel that lasted 18 years to fix the prices of prestressing steel, the long, curled steel wires used in construction to make foundations, balconies or bridges.
The cartel operated in every member of the European Union except Britain, Ireland and Greece between 1984 and 2002, the commission said. It was also in Norway.
ArcelorMittal was handed a fine of €276.5m, which includes a 20% reduction for cooperating with the commission's investigation.
"It is amazing how such a significant number of companies abused nearly the entire European construction market for such a long time and for such a vital product," said EU Competition Commissioner Joaquin Almunia.
"This was almost as if they were acting in a planned economy," he said, warning that the commission would have "no sympathy for cartelists" and that repeat offenders would face more fines.
Austrian company voestalpine AG, which was hit with a €22m fine, said it would take legal action against decision.
"During all stages of the proceeding, voestalpine has made it abundantly plain to the EU Commission that the company has never been involved in the prestressing steel cartel," it said in a statement.
The cartel broke up in 2002 after German company DWK/Saarstahl revealed its existence under an EU leniency programme which was introduced that year. The company was spared a fine for being the first to come clean.
Met in hotels around Europe
In addition to Luxembourg-based ArcelorMittal and DWK/Saarstahl, the cartel included companies from Spain, Portugal, Austria, Italy and Scandinavia.
The cartel held more than 550 meetings since its first gathering in Zurich, the commission said.
It was known as "Club Zurich" before changing to "Club Europe." It also had regional branches called "Club Italia" in Italy and "Club Espana" in Spain and Portugal.
"The companies involved usually met in the margin of official trade meetings in hotels all over Europe," it said.
The 17 companies fixed individual quotas and prices, allocated clients and exchanged sensitive commercial information, it said.
"In addition, they monitored price, client and quota arrangements through a system of national co-ordinators and bilateral contacts," said the commission, which started its probe with surprise inspections in September 2002 and June 2006 at the premises of suspected cartel members.
The commission said any person or firm "affected by anti-competitive behaviour" could seek damages in national courts.
"Even though the Commission has fined the companies concerned, damages may be awarded without these being reduced on account of the Commission fine," it said.
It was the fourth anti-cartel ruling by the commission since February, raising the total of fines slapped on companies so far this year to €1.5bn.
- AFP
