NMa fines 12 manufacturers of prefab concrete products for cartel offences

The Netherlands Competiton Authority (NMa) imposes fines amounting to a total of more than EUR 3 million on nine manufacturers of prefab concrete piles, and fines of well over EUR 2 million on three manufacturers of concrete floor elements. The highest individual fine amounts to more than EUR 1 million. The NMa imposes the fines for infringements of the Competition Act. The sanctions are based on information which the NMa received after a joint appeal of the NMa and the Cabinet calling on undertakings to 'come clear'. Evidence was also gathered from sources elsewhere.

Prefab concrete piles
The NMa considers it proven that nine undertakings producing concrete piles, for the period of 1 January 1998 to 31 December 2001 at any rate, held periodical meetings in order to coordinate their individual production and sales volumes for the Netherlands with regard to piles. In the sanctions procedure evidence was used which had been handed over to the NMa by eight of the undertakings as part of a leniency request.

Prefab concrete floor elements
As to the three undertakings which produce concrete floor elements, the NMa establishes that they held periodical meetings in the period of 1 January 1998 to March 2003, in order to coordinate their individual sales volumes for the Netherlands. The fact that the infringement was committed over a long period, has led to severe fines. More than ever before, the undertakings involved could have realised their behaviour was illicit, also taking into account the NMa investigation into (structural) infringements of the Competition Act in the construction sector. In the sanctions procedure evidence was used which had been handed over to the NMa by three undertakings as part of a leniency request.

Accelerated sanctions procedure
In November 2005 the NMa issued statements of objection against the undertakings involved, on the grounds of their participation in a cartel structure in subsectors of the concrete sector relating to prefab concrete piles and concrete floor elements. In drawing up the sanctions decisions, the NMa followed accelerated sanctions procedures in order to allow companies to 'come clear' quickly. This procedure entailed that the undertakings were not heard individually, but were given the opportunity to put forward their reaction to the statements of objection collectively via their representative, Mr J.C. Blankert. All undertakings involved in the infringement of cartel legislation in the subsectors of prefab concrete piles and concrete floor elements, have chosen to participate in the accelerated sanctions procedure. The NMa has reduced the fines imposed on these undertakings by 15%, because of their participation in the accelerated sanctions procedure.

The undertakings have to pay the imposed fines within thirteen weeks. Meanwhile, an amount of almost EUR 2 million has already been paid, and payment guarantees have been received for more than EUR 1 million. The fine payments received by the NMa are forwarded to the Treasury.

Progress made in investigations into construction industry
Up until now, the NMa has sent statements of objection to well over 1460 undertakings in the construction sector and related sectors, on suspicion of an infringement of the Competition Act. This includes the sectors of Roadworks and Civil Engineering [GWW], Installation Engineering, Concrete Paving Stones, Cable and Network Companies, Horticultural Services Providers and Building and Housing [B&U]. Fines have been imposed on approximately 1240 of these (construction) companies as part of the specially opened accelerated procedures. The total fining amount is approximately EUR 225 million. Meanwhile, regular sanctions procedures have been initiated involving companies not willing to take part in accelerated procedures. The fining decisions in these regular procedures will follow before the end of this year.

The NMa will continue monitoring compliance with the prohibition on cartels in the construction sector. Undertakings suspecting an infringement of the Competition Act other than the ones already established within the construction sector, may report this to the NMa and submit a request for leniency. On the basis of a leniency request, undertakings may be granted immunity from fining or a reduction of the fine ('leniency'), if they inform the NMa of cartels in which they have themselves participated. It is conditional that undertakings report with the Leniency Office on an individual basis and pass on valuable information. With a view to this, the NMa has drawn up guidelines. The Leniency Office may be contacted via 070 330 1710 (telephone), 070 330 1700 (fax) or email: clementie [at] acm [punt] nl (clementie[at]acm[dot]nl).