Cartels in the automotive sector. New fines from the Commission
On 29 September 2020, the Commission has fined Brose and Kiekert for taking part in two cartels concerning supplies of closure systems for cars in the European Economic Area (EEA).
Automotive closure systems cover a series of products which provide protection against injuries ensuring proper closing of all doors, windows and trunks in order to increase passengers’ safety while driving. In the 2009-2012 period, 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 the Daimler group. Magna, furthermore, took part in a separate bilateral cartel with Kiekert, based in Germany, concerning supplies of latches and strikers to the BMW and Daimler groups. More particularly, through meetings, phone calls and e-mail the three companies coordinated their pricing behaviour exchanging commercially sensitive information in order to preserve each party’s business and to avoid a deterioration of the pricing levels of their supplies.
Consequently, following an investigation started in 2015 the Commission decided to fine Brose for approximately € 3,2 million and Kiekert for approximately € 15 million, granting Magna full immunity for revealing both cartels. In accordance with the Guidelines on the method of setting fines, the Commission took into account, amongst other things, the sales value in the EEA, the nature of the infringements, their geographic scope and their duration. Furthermore, the two companies benefitted from a reduction on the basis of the 2006 Leniency Note for their cooperation with the Commission, and a further 10% reduction on the basis of the 2008 Settlement Notice for acknowledging their involvement in the cartels.
Marco Stillo