Wednesday, February 25, 2015

TRUCKS: FINE WORKS off the mark – SOURCES – Business Week

TRUCKS: FINE WORKS off the mark – SOURCES – Business Week

2015-02-25 15:31
 
 

BRUSSELS (AFX) EU Commission warns that take information in German newspapers about a fine of 4-5 billion for truck cartel too seriously.

That said sources in the Commission for Direkt on Wednesday. Handelsblatt stated on Monday the total fine as “up to 4 billion euros” and the Frankfurter Allgemeine Zeitung on Wednesday that 4.5-5 billion.

“I can not confirm any media data on fines . But often they look only at the accounts and calculating the maximum amount that can be 10 percent of sales. It has never occurred, “a source said.

” In other cases, the companies’ own lawyers estimates based on past cartel cases. I do not know where they may have received digits from “continued the source.

Volvo, Scania, DAF, Daimler, Iveco, Volvo-owned Renault Trucks and MAN accused of running a cartel from January 1997 to January 2011 to slow the introduction of new environmental technologies.

Volvo has reserved EUR 400 million and Daimler € 600 million.

The sources of the Commission, told the news agency Direkt that the Commission decide very late in investigation how big fines are for individual companies in the cartel. It occurs naturally only after the Commission has demonstrated its debt.

Company only informed in advance regarding the fine in cases where the Commission wants to reach an agreement for the expeditious case.

Then informed the company about a range of possible fines. But the amount just referring to their own company and not for others in the cartel. No total amount is not something companies access to.

“But no agreement is probably not in this case. (Competition Commissioner Margrethe) Vestager told you, it becomes very difficult because of the large number of companies involved, “said a source Direkt.

If the European truck manufacturers fined 4-5 billion would be by far the highest total for any cartel. Only three cases have exceeded 1 billion: Television and computer screens 1.47 billion (2012), automotive glass 1.18 billion (2008) and interest rate derivatives 1.04 billion (2013).

It is entirely up to the Commission to decide whether to try to reach a settlement with the company to get a quick act of cartel case. It requires that companies plead guilty, waives the right to appeal and cooperate well with the Commission during the investigation.

Some hybrid cases have occurred where part of the cartel participants have made up and others do not.

A settlement reduces the fine by 10 per cent a company that makes up.

A settlement should not be confused with reduced fines for their cooperation with the Commission during the investigation. These reductions vary greatly. The hope is to completely avoid fines because there were men who revealed the cartel to the Commission.

The sources declined to comment on whether the goal is to complete the investigation before year end. No time limit is to cartel investigations.

The Commission sent a so-called statement of objections (Statement of Objections) to the companies on 20 November. Subsequently, companies have the right to defend themselves in writing and may request an oral hearing.

Direct-GB

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