The European Commission has slapped a fine of over ¤458 million on the world’s largest steel maker ArcelorMittal and 16 others for operating a price-fixing cartel for nearly two decades.
“It is amazing how such a significant number of companies abused nearly the entire European construction market for such a long time and for such a vital product. This was almost as if they were acting in a planned economy, “ said Joaquín Almunia, Commission Vice-President in charge of Competition.
The Commission is the executive arm of the European Union. Earlier on June 30, the European Commission had fined 17 Prestressing steel producers ¤518.5 million for fixing prices of a type of steel used in concrete. On September 30, 2010 the Commission corrected errors in the calculation of the fine, after which the new figure stands at ¤458 million.
Prestressing steel comprises of long, curled steel wires used with concrete in construction sites to make foundations, balconies or bridges. ArcelorMittal was imposed the largest individual fine — over ¤230 million. Besides, the Commission increased the fines for ArcelorMittal Fontaine and ArcelorMittal Wire France by 60 per cent because they had already been fined twice for cartels in the steel sector.
The Commission has fined 17 pre-stressing steel producers a total of over ¤458 million for operating a price-fixing and market-sharing cartel between January 1984 and September 2002 in all the countries that then formed the EU except the United Kingdom, Ireland and Greece, the Commission said.
During 18 years, the companies fixed individual quotas and prices, allocated clients and exchanged sensitive commercial information. In addition, they monitored price, client and quota arrangements through a system of national co-ordinators and bilateral contacts, it added.This is in breach of Article 101 of the Treaty on the Functioning of the European Union, the regulator said.