Antitrust Law Daily Wrap Up, ANTITRUST NEWS: General Electric Asserts Price Fixing by Refrigerant Compressors Cartel, (Feb 20, 2013)

By William Zale, J.D.

General Electric has brought an antitrust suit alleging that Whirlpool Corp., Danfoss A/S, Household Compressors Holding SpA, and others agreed to fix the price of refrigerant compressors sold in the United States and elsewhere in the world. The complaint in General Electric Co. v. Whirlpool Corp. was filed in the federal district court in Louisville on February 15, 2013.

Refrigerant compressors are used in household refrigerators as part of the system that creates cold air that keeps food fresh or frozen. GE alleges that as the largest U.S. purchaser of refrigerant compressors, it has been a target and a victim of cartel activity in or affecting the United States.

The defendants and their co-conspirators allegedly agreed to, and in fact did, illegally inflate, raise, fix, and artificially stabilize the price of refrigerant compressors sold in the United States and elsewhere in the world. The defendants allegedly also agreed to, and in fact did, illegally restrict capacity, restrict innovation, stabilize market shares, allocate customers, territories, and product types, and otherwise restrain competition in the manufacture and sale of refrigerant compressors in the United States and elsewhere in the world. The result of the conduct has been to raise the prices paid by their customers, including GE, to supra-competitive levels, reducing the attractiveness of their products in terms of price and quality, and thereby damaging their businesses, according to the complaint.

GE asserts claims for violation of Section 1 of Sherman Act, fraud, and conspiracy and seeks award of treble damages and attorney fees, as well as compensatory and punitive damages for tortious or otherwise illegal conduct.

The case is No. 3:13-cv-00213-JGH.

Attorneys: John R. McCall (Frost Brown Todd LLC) for General Electric Co.

Companies: General Electric Co.; Whirlpool Corp.; Danfoss A/S; Household Compressors Holding SpA

News: Antitrust