Car – Photo John Karakatsanis
(BRUSSELS) – The European Commission fined car parts suppliers Brose and Kiekert a total of EUR 18 million Tuesday for taking part in two cartels concerning supplies of closure systems for cars in the European Economic Area.
Magna was not fined as it revealed both cartels to the Commission.
Magna, based in Canada and Brose, based in Germany took part in a bilateral cartel concerning supplies of door modules and window regulators for a certain car model of Daimler group. Magna and Kiekert, based in Germany, took part in a separate bilateral cartel concerning supplies of latches and strikers to BMW group and Daimler group. All three companies acknowledged their involvement in the cartels and agreed to settle the case.
“Components such as door modules, window regulators and latching systems are essential for the proper functioning of cars, they provide protection against injury and ensure safety and comfort,” said EC vice-president Margrethe Vestager, in charge of competition policy: “The three suppliers colluded to increase their profits from the sale of these components. These cartels ultimately hurt European consumers and adversely impacted the competitiveness of the European automotive sector.”
The three car equipment suppliers addressed in this decision coordinated their pricing behaviour and exchanged commercially sensitive information. The aim of the three companies involved in both cartels was to preserve each party’s existing business and to avoid a deterioration of the prevailing pricing levels of the supplies. The coordination took place through meetings, phone calls or e-mail exchanges.
The Commission’s investigation revealed the existence of two separate infringements. The following table details the participation and the duration of each company’s involvement in each of the two infringements:
| Undertaking | Scope | Start date | End date |
First infringement | MAGNA | Sales of door modules and window regulators for passenger C-class car models A205, C205, S205 and W205 to Daimler | 12 August 2010 | 21 February 2011 |
BROSE | 12 August 2010 | 21 February 2011 | ||
Second infringement | MAGNA | Sales of latches and strikers for passenger cars to BMW and Daimler (for Daimler only in relation to supplies of G/GN/GL2-latches and strikers through the joint purchasing initiative “Industriebaukasten” between Daimler and BMW) | 15 June 2009 | 7 May 2012 |
KIEKERT | 15 June 2009 | 7 May 2012 |
In terms of fines, Magna received full immunity for revealing both cartels, thereby avoiding an aggregate fine of ca. 6 million; Brose and Kiekert benefited from reductions of their fines for cooperating with the Commission investigation; and Kiekert was granted partial immunity for the second infringement, as it was the first company to submit compelling evidence that enabled the Commission to extend the duration of the second alleged infringement until 15 June 2009.
More information on this case will be available under the case number AT.40299 in the public case register on the Commission’s competition website, once confidentiality issues have been dealt with. For more information on the Commission’s action against cartels, see its cartels website.
