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Competition: Huge fine imposed on members of the heating pipe cartel case

United Kingdom
26/10/1998
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Huge fine imposed on members of the heating pipe cartel case


A total of ECU 92.2 million in fines has been imposed by the European Commission on producers found to have participated in the so-called heating pipe cartel. The pipes in question are used for district heating systems. The Commission found evidence of market sharing, price fixing and bid-rigging as well as concerted attempt to remove a non-participant in the cartel from the market.


According to the Commission, the cartel was initiated in 1990, originally in Denmark. Since then, it has grow to cover the whole of the European market. The ten companies fined include five of the largest suppliers of these products. The investigation was initiated after a compliant was lodged by a non-participating competitor who was rapidly losing market share.


The extremely high level of the fines imposed was due to the duration of the cartel and the fact that it involved some of the most noxious anti-competitive practices. An additional aggravating factor was that the cartel continued even after the Commission had uncovered strongly incriminating evidence of these practices.


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