Prysmian, Nexans and eight other cable companies on July 12 lost their challenge against an EUR 302 million (USD 353 million) EU cartel fine.
July 12, 2018
Investment bank Goldman Sachs , the world’s biggest cablemaker Prysmian , Nexans and eight other cable companies on July 12 lost their challenge against an EUR 302 million (USD 353 million) EU cartel fine, as reported by a news website. The companies had appealed to the General Court, Europe’s second-highest court, asking for the European Commission’s 2014 decision to be thrown out and their fines reduced.
The EU antitrust enforcer said the group ran a power cable cartel for almost 10 years from 1999, sharing markets and allocating customers between themselves. ABB escaped a 33 million euro sanction by alerting the authorities.
The court rejected the appeals. Prysmian was hit with the biggest fine at 104.6 million euros, which included a joint fine of 37.3 million euros with Goldman Sachs. The bank acquired the Italian company via one of its private equity funds in 2005 but has since sold its holding.
The group said in a statement it would appeal the general court’s decision at the EU’s highest court, the European Court of Justice. Other cartel members were Japanese cable firms Exsym Corporation, J-Power Systems Corporation and Viscas Corporation, Korean peer LS Cable & System and General Cable Corp via its subsidiary Silec.
Fines were also given to Danish company NKT Holding, South Korean firm Taihan Electric Wire Mitsubishi Cable Industries, Sumitomo Electric Industries and Hitachi Metals Ltd. Sumitomo and Hitachi were J-Power Systems’ previous owners. Antitrust enforcers in Japan, South Korea and Australia have already levied million-dollar fines against cable companies for anti-competitive practices.
