18 June 2015

German FCO fines garage producers for price fixing

The German Federal Cartel Office (FCO) has fined ten producers of standard-sized prefabricated concrete garages for having participated in illegal price coordination.  Nine of the companies involved in the price fixing arrangements conspired regarding garage sales in the Southern part of Germany.  Representatives of their companies met several times per year to repeatedly agree on minimum sales prices during the period 2005-2012.  The cartelists introduced three different price zones and agreed to differentiate prices according to the volumes sold and types of customers (private constructors on the one hand and architects or building companies as commercial customers on the other).  In addition, the cartel agreed on surcharges for road toll, energy and steel costs.  Some of the cartelists conspired in additional meetings during 2005 and 2009 to agree on customer protection and specifically higher prices for the regions with postal codes starting with 78 and 79.

An additional company from Northern Germany entered into bilateral anticompetitive arrangements with the leniency applicant Rekers to coordinate garage prices offered within the Northern German States between 2006 and 2009.

The investigation of the FCO was launched upon Rekers’ leniency application based on which Rekers managed to escape a fine.  The FCO reports that all companies cooperated with the FCO during the proceedings and agreed to settlements which led to reductions in their fines.  All decisions are binding and cannot be appealed by the parties.

A Guide to Doing Business in China

We explore the key issues being considered by clients looking to unlock investment opportunities in the People’s Republic of China.

Doing Business in China
Share on LinkedIn Share on Facebook Share on Twitter
    You might also be interested in

    Keepwell deeds, also known as letters of comfort, are a credit protection tool commonly used by Chinese companies issuing debt offshore.

    23 February 2021

    We discusses recent developments and emerging trends in competition litigation involving the Competition Appeal Tribunal.

    28 November 2016

    The European Commission’s proposed Geo-Blocking Regulation fails to address some of the key e-commerce concerns the Commission had previously identified.

    21 June 2016

    This article was written by Andrew Morrison (associate) Ultra Finishings On 10 May 2016 the UK Competition and Markets Authority (the CMA) fined Ultra Finishing Limited (Ultra) £786,668 for...

    21 June 2016

    You may also be interested in...

    Legal services for your business

    This site uses cookies to enhance your experience and to help us improve the site. Please see our Privacy Policy for further information. If you continue without changing your settings, we will assume that you are happy to receive these cookies. You can change your cookie settings at any time.

    For more information on which cookies we use then please refer to our Cookie Policy.