Antitrust Law Daily Wrap Up, ANTITRUST NEWS: European Commission imposes fines in first auto parts cartel matter, (Jul 10, 2013)
Organizations Mentioned:Furukawa Electric Co. | Leoni AG | Leoni AG. | S-Y Systems Technologies | Sumitomo | Yazaki
By Jeffrey May, J.D.
The European Commission (EC) announced today that it has fined auto parts suppliers Sumitomo, Yazaki, Furukawa, S-Y Systems Technologies (SYS), and Leoni a total of more than € 141 million for operating five cartels for the supply of wire harnesses to auto makers. Wire harnesses, often described as the “central nervous systems” of cars, conduct electricity in automobiles, the EC explained.
Auto makers impacted by the conduct included Toyota, Honda, Nissan, and Renault. The challenged conduct took place between 2000 and 2009.
The suppliers agreed to settle the dispute. Yazaki was fined €125,341,000. Furukawa was fined €4,015,000. SYS was fined €11,057,000. Leoni was fined €1,378,000. No fine was imposed on Sumitomo. That company received full immunity for revealing the existence of the cartel and for participating in the EC's leniency program.
“Today's decision shows the first results in the Commission's wider investigative effort to detect and sanction any illegal cartels in markets for car parts,” said Joaquin Almunia, Commission Vice President in charge of competition policy. “Such cartels may harm the competitiveness of the automotive industry and artificially inflate prices for final buyers of cars.”
The EC noted that it is currently investigating other areas of the auto parts sector, including occupant safety systems, bearings, thermal systems, and lighting.
Companies: Sumitomo; Yazaki; Furukawa Electric Co.; S-Y Systems Technologies; Leoni AG.
News: Antitrust