ABB Asea Brown Boveri Ltd, Brugg Rohrsysteme GmbH, Dansk Rørindustri A/S, Henss/Isoplus Group, Ke-Kelit Kunststoffwerk Ges mbH, Oy KWH Tech AB, Løgstør Rør A/S, Pan-Isovit GmbH, Sigma Tecnologie Di Rivstimento S. r. l. and Tarco Energie A/S have infringed Article 85(1) of the Treaty by participating, in the manner and to the extent set out in the reasoning, in a complex of agreements and concerted practices in the pre-insulated pipes sector which originated in about November/December 1990 among the four Danish producers, was subsequently extended to other national markets and brought in Pan-Isovit and Henss/Isoplus, and by late 1994 consisted of a comprehensive cartel covering the whole of the common market.
The duration of the infringements was as follows:
- in the case of ABB, Dansk Rør, Løgstør, Pan-Isovit and Tarco from about November/December 1990 to at least March or April 1996,
- in the case of Henss/Isoplus, from about October 1991 up to the same time,
- in the case of Brugg from about August 1994 up to the same time,
- in the case of Ke-Kelit from about January 1995 up to the same time,
- in the case of KWH from at least March 1995 up to the same time,
- in the case of Sigma from about April 1995 up to the same time.
The principal characteristics of the infringement consisted in:
- dividing national markets and eventually the whole European market amongst themselves on the basis of quotas,
- allocating national markets to particular producers and arranging the withdrawal of other producers,
- agreeing prices for the product and for individual projects,
- allocating individual projects to designated producers and manipulating the bidding procedure for those projects in order to ensure that the assigned producer was awarded the contract in question,
- in order to protect the cartel from competition from the only substantial non-member, Powerpipe AB, agreeing and taking concerted measures to hinder its commercial activity, damage its business or drive it out of the market altogether.
The undertakings named in Article 1 shall forthwith bring the said infringement to an end, if they have not already done so. They shall henceforward refrain in relation to their activities in pre-insulated pipes from any agreement or concerted practice which may have the same or a similar object or effect as the infringement, including any exchange of commercial information by which they might be able to monitor adherence to or compliance with any tacit or express agreement regarding market-sharing, price fixing or bid-rigging in the Community.
The following fines are hereby imposed on the undertakings named in Article 1 in respect of the infringements found therein:
(a) ABB Asea Brown Boveri Ltd, a fine of ECU 70 000 000;
(b) Brugg Rohrsysteme GmbH, a fine of ECU 925 000;
(c) Dansk Rørindustri A/S, a fine of ECU 1 475 000;
(d) de Henss/Isoplus-group, a fine of ECU 4 950 000, for which the following companies are jointly and severally liable:
- HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft mbH & Co KG,
- HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft mbH Verwaltungsgesellschaft,
- Isoplus Fernwärmetechnik Vertriebsgesellschaft mbH (formerly Dipl-Kfm Walter Henss GmbH Rosenheim),
- Isoplus Fernwärmetechnik GmbH, Sondershausen,
- Isoplus Fernwärmetechnik Gesellschaft mbH - stille Gesellschaft,
- Isoplus Fernwärmetechnik Ges mbH, Hohenberg,
(e) Ke-Kelit Kunststoffwerk Ges mbH, a fine of ECU 360 000;
(f) Oy KWH Tech AB, a fine of ECU 700 000;
(g) Løgstør Rør A/S, a fine of ECU 8 900 000;
(h) Pan-Isovit GmbH, a fine of ECU 1 500 000;
(i) Sigma Tecnologie Di Rivestimento S. r. l., a fine of ECU 400 000;
(j) Tarco Energi A/S, a fine of ECU 3 000 000 ECU.
The fines shall be paid within three months of the date of notification of this Decision to the following account:
Account No 310-0933000-43,
European Commission,
Banque Bruxelles-Lambert,
Agence Européenne,
Rond-Point Schuman/Schumanplein 5,
B-1040 Brussel.
After three months, interest shall automatically be payable at the rate charged by the European Central Bank on its ecu transactions on the first working day of the month in which this Decision was adopted, plus 3,5 percentage points, namely, 7,5 %.
This Decision is addressed to:
(a) ABB Asea Brown Boveri Ltd,
Affolternstrasse 44,
8050 Zurich,
Switzerland,
c/o ABB IC Møller A/S,
Treldevej 191,
DK - 7000 Fredericia;
(b) Brugg Rohrsysteme GmbH,
Adolf-Oesterheld-Strasse 31,
D - 31515 Wunstorf;
(c) Dansk Rørindustri A/S,
Nymarksvej 37,
DK - 7000 Fredericia;,
(d) De Henss/Isoplus group, represented by:
- HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft mbH & Co KG,
Aisingerstrasse 12,
D - 83026 Rosenheim,
- HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft mbH,
Verwaltungs-gesellschaft,
Aisingerstrasse 12,
D - 83026 Rosenheim,
- Isoplus Fernwärmetechnik GmbH,
Aisingerstrasse 12,
D - 83026 Rosenheim,
- Isoplus Fernwärmetechnik Ges mbH,
Furthoferstrasse 1A,
A - 3192 Hohenberg,
- Isoplus Fernwärmetechnik Ges mbH - stille Gesellschaft,
Furthoferstrasse 1A,
A - 3192 Hohenberg,
- Isoplus Fernwärmetechnik GmbH,
Gluckaufstrasse 34,
D - 99706 Sondershausen;
(e) Ke-Kelit Kunststoffwerk Ges mbH,
Ignaz-Meyer-Strasse 17,
Postfach 68,
A - 4017 Linz;
(f) Oy KWH Tech AB,
Kappelinmäentie 240,
FIN - 65370 Vaasa;
(g) Løgstør Rør A/S,
Danmarksvej 11,
DK - 9670 Løgstør;
(h) Pan-Isovit GmbH,
Leipziger Strasse 130,
D - 36037 Fulda;
(i) Sigma Tecnologie di Rivestimento Srl,
Via Campagna Sopra 14,
I - 25017 Lonato (BS);
(j) Tarco Energi A/S,
Erritsø Møllebanke 10,
DK - 7000 Fredericia.
This Decision shall be enforceable pursuant to Article 192 of the EC Treaty.
Done at Brussels, 21 October 1998.
For the Commission
Karel VAN MIERT
Member of the Commission
(1) OJ 13, 21.2.1962, p. 204/62.
(2) OJ 127, 20.8.1963, p. 2268/63.
(3) Articles 2(2)(a)(iii) and 14 of Council Directive 93/38/EEC of 14 June 1993 coordinating the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors (OJ L 199, 9.8.1993, p. 84); Directive as last amended by European Parliament and Council Directive 98/4/EC (OJ L 101, 1.4.1998, p. 1).
(4) With effect from 1 January 1996 ABB's worldwide activities in rail transport were merged with those of Daimler-Benz Transportation in a joint venture company named ADTRANZ: see Commission Decision 97/25/EC (Case No IV/M.580 - ABB/Daimler Benz); (OJ L 11, 14.1.997, p. 1). The then Chairman of ABB's Transportation Segment was appointed Chairman and Chief Executive Officer of the new company. The District Heating activity remained in the main ABB group structure and is now part of its Power Generation segment.
(5) Henss Rosenheim changed its name to Isoplus Fernwärmetechnik Vertriebsgesellschaft mbH as of 1 January 1997, and on 6 August 1997 absorbed Henss Berlin which no longer exists as a separate legal entity.
(6*) All references in this Decision to numbered appendices are to the appendices to the Statement of Objections.
(7) EuHp was set up on 29 April 1991, holding its inaugural meeting in Billund, Denmark. While Pan-Isovit had initially declined to join, Isoplus (to its considerable displeasure) was not invited.
(8) According to Løgstør, there were discussions for the Netherlands, Austria and Sweden as well as Germany but apart from the fact that the participants were the same, no further details are available. At the time Austria and Sweden were not Member States of the European Community.
(9) Løgstør sales in Italy via Socoløgstør were part of its overall European quota and the Commission rejects Løgstør's contention that 'the Italian market is not relevant to the case against Løgstør`. Løgstør is also identified as a participant in the first meeting of the contact group for Italy, as well as in a meeting concerning Italy held in Zurich on 9 June 1995.
(10) The full name appears in the original document.
(11) Løgstør later qualified this statement by stating that a project (unidentified) worth DKK 30 million was awarded to Henss/Isolus 'exceptionally` in lieu of compensation (Reply to Statement of Objections, p. 66).
(12) [1972] ECR 619.
(13) [1975] 1663.
(14) [1991] ECR II-1711, at (256).
(15) See footnote 14, at (262) and (263).
(16) See footnote 14; at (264).
(17) The Commission accepts that there is no evidence that Ke-Kelit or Sigma, who were involved only in the arrangements on their national market, were aware of any plan to eliminate Powerpipe.
(18) [1992] ECR II-1021, at point 304.
(19) OJ L 230, 18.8.1986, p. 1.
(20) The share capital of Henss Berlin was owned by one of the directors of Henss Rosenheim and his spouse.
(21) The holding entity HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft is constituted as a 'GmbH & Co KG`, i.e. a limited partnership with a private limited liability company acting as the general partner (Komplementär) with personal liability; the other individual partners (Kommanditisten) are liable only up to a specified sum. The general partner or Komplementär in the GmbH Co KG in question here is HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft mbH Verwaltungs-gesellschaft.
(22) Under this agreement, Dr Henss, his business associate and their respective spouses placed their shareholdings in a series of Henss/Isoplus companies into HFB Holding für Fernwärmetechnik Beteiligungsgesellschaft mbH & Co. KG. The shareholdings were in the following companies:
- Isoplus Fernwärmetechnik Vertriebsgesellschaft mbH (formerly Dipl. Kfm Walter Henss GmbH), Rosenheim,
- Dipl. Kfm Walter Henss Fernwärmerohrleitungsbau GmbH, Berlin,
- Isoplus Fernwärmetechnik GmbH, Sondershausen,
- Isoplus Fernwärmetechnik Ges.mbH, Hohenberg,
plus three other companies in Budapest, Schlüchtern and Lehrte.
Since the date of the Einbringungsvertrag HFB Holding has divested itself of the shareholding of Dr Henss (via a trustee) in Isoplus Fernwärmetechnik Ges.mbH, Höhenberg, but the identity of the transferee and the current ownership of these shares is not known to the Commission.
(23) He held the shares pursuant to a trust agreement (Treuhandvertrag) of 20 December 1993; having acquired them on the same date from the lawyer acting for Isoplus in the present proceedings: it may be concluded that the lawyer had also held them as a trustee for Dr Henss (see 157).
(24) OJ C 207, 18.7.1996, p. 4.
