Bundeskartellamt imposes further multi-million fine on manufacturers of fire-fighting vehicles

Today the Bundeskartellamt imposed a fine amounting to € 30 million on IVECO Maidus Brandschutztechnik GmbH, Ulm. The company is accused of having implemented illegal price-fixing and quota agreements together with three other manufacturers of fire-fighting vehicles and of having carved up the German market for fire-fighting vehicles among themselves since at least 2001.

In February 2011, after settlements had been agreed, the Bundeskartellamt had already imposed fines totalling € 20.5 million on the other companies involved, i.e. Albert Ziegler GmbH & Co. KG, Giengen an der Brenz, Schlingmann GmbH & Co. KG, Dissen, the Rosenbauer Group with business locations in Luckenwalde and Leonding/Austria, as well as on a Swiss chartered accountant (cf. Bundeskartellamt press release of 10 February 2011). In a further proceeding a fine amounting to € 17.5 million had been imposed on Iveco on account of illegal agreements in the sector of turntable ladder vehicles (cf. Bundeskartellamt press release of 27 July 2011). These fines have now become final.

Andreas Mundt, President of the Bundeskartellamt, stated: "With the fine imposed today we have concluded our proceedings on fire-fighting vehicles. By taking decisive action we have put an end to the manufacturers' practice of dividing up municipal contracts among themselves. On the basis of our decisions the municipalities harmed by this practice also have the possibility to claim damages."

The companies mentioned above are the leading manufacturers of fire-fighting vehicles in Germany. For years the companies granted one another a certain share of sales, so-called target quotas. The companies would notify their order intake to an accountant based in Switzerland. The latter would then compile lists which were used to monitor adherence to the agreed quotas at regular meetings of the cartel at Zurich Airport. The companies also coordinated price increases.

In addition to the "Zurich meetings" of the managing directors, regular meetings were held at sales manager level. At these meetings invitations to tender received from municipalities for orders of fire-fighting vehicles were divided among the cartel members.

In both cases the companies' aim was to consolidate their customer allocation system and prevent competition moves on prices and rebates.

The proceedings against the sales managers, CEOs and directors involved were referred to the competent public prosecutors offices for examination under criminal law.

In addition to the other companies which have already been fined, IVECO also filed an application for leniency with the Bundeskartellamt. Its cooperation with the authority was taken into account in the calculation of the fine.

The fine is not yet final; the order imposing the fine and can be appealed to the Düsseldorf Higher Regional Court.