Cartel agreement concerning turntable ladders for fire engines punished with a 17.5 million Euro fine.

The Bundeskartellamt has imposed a fine of 17.5 million Euro against Iveco Magirus Brandschutztechnik GmbH in Ulm for its involvement in anti-competitive agreements on the manufacture of fire engines equipped with turntable ladders. The other participant in the anti-competitive agreements was Metz Aerials GmbH & Co. KG, Karlsruhe, which belongs to the Austrian Rosenbauer group. No fine was imposed against Rosenbauer because the company had informed the Bundeskartellamt of the cartel agreement in 2010 by way of a leniency application. In May 2010 the Bundeskartellamt conducted a search. The proceedings against the sales managers and CEOs involved were referred to the competent public prosecutor's office for examination under criminal law.

The President of the Bundeskartellamt, Andreas Mundt, stated: "It is not only illegal agreements on prices that cause significant damage to the economy. If so-called competitors agree to divide business among each other the municipalities' system of public tendering is undermined. As a result, not the best manufacturer with the most economic bid will be awarded the contract but the one whose turn it is according to the agreement."

The cartel agreement concerned the manufacture of fire engines with turntable ladders between 1998 and November 2007. Iveco and Rosenbauer have a combined market share of close to 100% on this market. During the cartel period the companies' sales managers met at regular intervals and divided tenders among each other on the basis of project lists. The objective was to divide the market up in a ratio of 50/50. In order to conceal the cartel agreements, the sales managers initially communicated via prepaid mobiles and since the football world championship 2006 in a "football code" referring to cartel meetings as "trainings" and to rebates in the form of match results.

The order imposing the fine is not yet final and can be appealed against at the Düsseldorf Higher Regional Court. The fined company's willingness to end the proceedings by settlement has been considered in the calculation of the fine.

The proceedings on anti-competitive agreements concerning turntable ladders for fire engines have therefore been concluded. The proceedings against Iveco on account of anti-competitive agreements on the manufacture of fire engines (B12-11/09) are still ongoing. The orders imposing fines on the other members of this cartel, which were issued in February 2011 (cf. Bundeskartellamt press release of 10 February 2011), have now become final.