2004/275/EC: Commission Decision of 10 October 2001 declaring a concentration to be incompatible with the common market — Council Regulation (EEC) No 4064/89 (Case COMP/M.2283 — Schneider/Legrand) (notified under document number C(2001) 3014) (Text with EEA relevance)

Article 2
This Decision is addressed to:
SCHNEIDER ELECTRIC S.A. 43-45, boulevard Franklin Roosevelt F 92500 Rueil-Malmaison France
Done at Brussels, 10 October 2001.
For the Commission
Mario Monti
Member of the Commission
(1) OJ L 395, 30.12.1989, p. 1; corrected version: OJ L 257, 21.9.1990, p. 13.
(2) OJ L 180, 9.7.1997, p. 1; corrected version: OJ L 40, 13.2.1998, p. 17.
(3) OJ C 86, 6.4.2004.
(4) OJ C 86, 6.4.2004.
(5) Turnover calculated in accordance with Article 5(1) of the Merger Regulation and with the Commission notice on calculation of turnover (OJ C 66, 2.3.1998, p. 25). Where the figures relate to turnover for a period preceding 1 January 1999, they are calculated on the basis of the average ecu exchange rates and converted to euros on a one-to-one basis.
(6) "Evolution of the strategic positioning of our main competitors".
(7) Parts of this document have been omitted to ensure that no confidential information is disclosed; these are contained in square brackets and marked with an asterisk.
(8) Legrand, Medium-term plans.
(9) Message from the parties dated 25 July 2001.
(10) Schneider document (reply to question 316): "Developing switchboard business".
(11) OJ L 77, 26.3.1973, p. 29.
(12) www.cenelec.org/Info/about.htm.
(13) www.dke.de/en/wir/normung.
(14) Reply by the parties dated 21 June 2001 to question 187.
(15) General catalogue for 2001, p. 319 (bold characters as in the original).
(16) Catalogue for 2000, p. 800.
(17) www.cebec.be/leaflets/cebec.html.
(18) Legrand document "Overview medium-term plan July 2000".
(19) Legrand, Form 20-F SEC.
(20) Crédit Suisse First Boston report on Legrand (11 September 2000), Williams de Broë report on Schneider (4 January 2000).
(21) Legrand, Form 20-F SEC.
(22) Hager, reply to phase I questionnaire.
(23) Schneider, reply to question 109.
(24) The electrical power of an item of equipment or an installation depends on two parameters: the strength of the electrical current (which characterises the rate of electrical charge flowing through the relevant conductor), measured in amperes (A); and the electrical voltage (which determines the force ensuring the flow of electric charge and hence the creation of electric current), measured in volts (V).
Overcurrent occurs when the electric current circulating is greater than that for which the relevant electrical circuit was designed (for example, if the downstream installation requires more power than was allowed for). This results in the overheating of the electrical conductors, which may lead to the failure of the installation or indeed to a fire. A short circuit involves a current leakage within an installation. The leakage may, for example, be caused by accidental contact between a person and a live wire: in such cases, the person will establish the electrical connection between the wire (which the person touches) and the ground (on which the person is standing). The potential difference between the wire and the ground will then create an electrical current (leakage), which will pass from the live wire to the ground through the person.
(25) The parts of electrical equipment with which the user can normally come into contact without danger.
(26) Conductor which normally is not live. The neutral conductor is to be distinguished from phase conductors, which are live. In single-phase current, electricity circulates normally between one phase and the neutral point. In three-phase current, electricity circulates between phases.
(27) I.e. a live conductor.
(28) Spie Trindel, reply to phase I questionnaire.
(29) Form CO, p. 54.
(30) Gewiss, reply to phase I questionnaire.
(31) Legrand, reply to question 65.
(32) Replies by the parties to points 68 and 113 of the questionnaire of 6 April 2001.
(33) Points 70 and 112 of the questionnaire of 6 April 2001.
(34) Bticino, Medium-term plan [...]*.
(35) Legrand, Medium-term plans.
(36) Schneider, European price convergence.
(37) Commission notice on the definition of relevant market for the purposes of Community competition law (OJ C 372, 9.12.1997, p. 5).
(38) See, for example, the seminal article "The extent of the market" by Stigler and Sherwin, Journal of Law and Economics vol. 28, 555-585, October 1985.
(39) Annex, reply to point 25 of the questionnaire of 6 April 2001.
(40) Annex, replies to points 25 and 64 of the questionnaire of 6 April 2001.
(41) Annex, reply to point 64 of the questionnaire of 6 April 2001; memo submitted by the parties on 13 March 2001-"Definition of product market for segments 1, 2 and 4".
(42) It should be noted that the parties base their arguments particularly on the Commission Decision of 3 June 1999 in Case IV/M.1434 - Schneider / Lexel, which they believe established such a European definition for the geographic markets. However, that Decision did not in fact reach any conclusion on the exact size of the geographic markets.
(43) Legrand, Form 20-F SEC.
(44) IEC 64/1167/CD provided by the parties further to their reply to point 320 of the questionnaire of 6 April 2001.
(45) Legrand and Bticino, Medium-term plans.
(46) Bticino, Medium-term plan.
(47) Legrand and Bticino, Medium-term plans.
(48) Schneider, Three-year plan (2001-2002-2003), country/zone: Germany.
(49) Gewiss, reply to phase I questionnaire.
(50) Legrand, Form 20-F SEC.
(51) Legrand and Bticino, Medium-term plans.
(52) Legrand and Bticino, Medium-term plans.
(53) Schneider, Three-year plan (2001-2002-2003).
(54) Legrand and Bticino, Medium-term plans.
(55) Schneider, Three-year plan (2001-2002-2003).
(56) Belonging to GE.
(57) Belonging to Legrand.
(58) Legrand, Medium-term plans.
(59) Legrand, Medium-term plans.
(60) Legrand, Medium-term plans.
(61) Hagemeyer, reply to phase II questionnaire.
(62) GE, supplement to its reply to the phase II questionnaire.
(63) Legrand, Medium-term plans.
(64) Schneider, European price convergence.
(65) Message dated 3 July 2001 in reply to a request for information made by the Commission on 2 July 2001.
(66) Annex 39 to Form CO.
(67) Reply by the parties dated 21 June 2001 to a request for information dated 13 June 2001.
(68) Form CO, p. 52.
(69) Reply dated 23 February 2001, point 6.
(70) Reply by the parties to point 9 of the questionnaire of 22 March 2001.
(71) Form CO, p. 52.
(72) "Busbar trunking - SBU presentation". Document supplied in reply (Annex 8) to the questionnaire of 22 March 2001, p. 10.
(73) Document supplied as Annex 39 to Form CO, p. 4.
(74) "Busbar trunking - SBU presentation", loc. cit., p. 9.
(75) Form CO, p. 52.
(76) "Busbar trunking - SBU presentation", loc. cit., p. 10.
(77) Loc. cit., p. 9.
(78) Reply by the parties to point 4 of the questionnaire of 22 March 2001.
(79) "Busbar trunking - SBU presentation", loc. cit., p. 9.
(80) "Presentation of the busbar trunking marketing approach", document supplied by Schneider in reply (Annex 6) to the questionnaire of 22 March 2001, p. 4.
(81) Reply by the parties dated 21 June 2001 to a Commission request for information dated 13 June 2001.
(82) Reply dated 17 February 2001, point 6.
(83) Reply by the parties to point 7 of the questionnaire of 22 March 2001.
(84) Form CO, p. 53.
(85) Point 472.
(86) Points 126-224.
(87) Reply by the parties dated 21 June 2001 to a Commission request for information dated 13 June 2001.
(88) Reply of 21 June 2001 to a Commission request for information dated 13 June 2001.
(89) Reply of 21 June 2001 to a Commission request for information dated 13 June 2001.
(90) Reply by the parties dated 19 July 2001 to point 1 of the questionnaire of 22 March 2001.
(91) Reply to the statement of objections, point 484.
(92) Point 485 et seq.
(93) Reply to the statement of objections, point 489.
(94) E-mail message of 12 March 2001.
(95) Points 506 and 509.
(96) Form CO, p. 90.
(97) Annex to Schneider's reply to point 98 of the questionnaire of 29 June 2001.
(98) Point 523.
(99) Point 512 et seq.
(100) Reply dated 10 July 2001, question 15.
(101) Reply dated 18 June 2001.
(102) In its Decision of 28 September 1992 in Case IV/M.256 - Linde/Fiat, cited by the parties in support of their argument, the Commission relied on considerations of demand-side complementarity and supply-side substitutability, but left the question of the precise definition of the product market open.
(103) Catalogue for 2001, p. 6.
(104) Commission notice on the definition of relevant market for the purposes of Community competition law, point 20.
(105) Reply dated 22 June 2001.
(106) Cooper Menvier S.A., reply to phase II questionnaire for competitors (segment 5) dated 29 June 2001.
(107) Commission notice on the definition of relevant market for the purposes of Community competition law, point 20.
(108) This has a different pin configuration from the standard one which distinguishes one connection point and serves to prevent the connection of certain equipment that could introduce parasites into the circuit.
(109) Reply by the parties dated 21 June 2001 to question 149.
(110) The following standards were mentioned by the parties (reply dated 10 July 2001, question 10): TAE in Germany, TDO in Austria, RTT in Belgium, RITA in Portugal, RJ 12 in Spain, RJ 11 in Greece and Italy and BS in the United Kingdom.
(111) See table annexed to reply to question 139 dated 21 June 2001.
(112) See document entitled "LPR Annex" provided in reply to point 139 of the questionnaire of 6 April 2001.
(113) Source:
document "LPR Annex" (see footnote 113).
(114) Reply by the parties dated 21 June 2001 to question 187.
(115) See point 62 above.
(116) Reply by the parties dated 21 June 2001 to question 187.
(117) Reply by the parties dated 10 July 2001 to question 31.
(118) See points 202-210 above.
(119) Reply by the parties to points 238 and 240 of the questionnaire of 6 April 2001.
(120) Reply by the parties to point 240 of the questionnaire of 6 April 2001.
(121) Reply by the parties to point 242 of the questionnaire of 6 April 2001.
(122) Points 202-210.
(123) Reply by the parties dated 11 July 2001 to a request for information made by the Commission on 6 July 2001.
(124) Reply to point 246 of the questionnaire of 6 April 2001.
(125) Annex to the parties' reply to point 66 of the questionnaire of 6 April 2001.
(126) Reply by the parties dated 20 July 2001 to a request for information made by the Commission on 3 July 2001.
(127) Reply by the parties dated 20 July 2001 to a request for information made by the Commission on 3 July 2001.
(128) "General comment" on the Annex to the reply from Schneider to point 139 of the questionnaire of 6 April 2001.
(129) Reply by the parties to point 244 of the questionnaire of 6 April 2001.
(130) Legrand annex to point 139 of the questionnaire of 6 April 2001.
(131) Reply by the parties to point 244 of the questionnaire of 6 April 2001.
(132) Annex to Legrand's reply to point 139 of the questionnaire of 6 June 2001.
(133) Legrand annex to point 193 of the questionnaire of 6 April 2001.
(134) Reply by the parties to point 244 of the questionnaire of 6 April 2001.
(135) Annex to Legrand's reply to point 139 of the questionnaire of 6 June 2001.
(136) Reply by the parties dated 25 June 2001 to a request for information made by the Commission on 21 June 2001.
(137) Annex to the parties' reply to point 245 of the questionnaire of 6 April 2001.
(138) Annex to Legrand's reply to point 139 of the questionnaire of 6 April 2001.
(139) Annex 16 to Form CO.
(140) Annex 16 to Form CO.
(141) Reply by the parties dated 16 July 2001 to a request for information made by the Commission on 3 July 2001.
(142) Form CO, p. 102.
(143) Reply of 19 March 2001 to point 25 of the questionnaire of 14 March 2001.
(144) Catalogue for 1999, p. 366/367.
(145) Commission notice on the definition of relevant market for the purposes of Community competition law, point 7.
(146) Reply of 19 March 2001 to point 25 of the questionnaire of 14 March 2001.
(147) Supplement to Form CO of 14 March 2001, p. 12.
(148) Polylux, reply dated 9 July 2001.
(149) Commission notice on the definition of relevant market for the purposes of Community competition law, point 8.
(150) IEC and EN standards 60947-5-1.
(151) Reply by the parties to point 29 of the questionnaire of 15 March 2001.
(152) Supplement to Form CO, p. 15.
(153) Reply by the parties to point 291 of the questionnaire of 6 April 2001.
(154) Reply by the parties to point 290 of the questionnaire of 6 April 2001.
(155) Reply by the parties to point 70 of the questionnaire of 29 June 2001.
(156) Schneider annex to the reply to point 33 of the questionnaire of 15 March 2001.
(157) Schneider annex to the reply to point 33 of the questionnaire of 15 March 2001.
(158) Legrand annex to the reply to points 12, 3 and 40 of the questionnaire of 15 March 2001.
(159) Point 774.
(160) Reply by Schneider to point 33 of the questionnaire of 20 March 2001.
(161) Page 1 of the Baco document attached to the reply by Legrand to points 12, 34 and 40 of the questionnaire of 20 March 2001.
(162) Reply to the statement of objections, point 776.
(163) Reply to the statement of objections, point 777.
(164) Point 784.
(165) Reply to the statement of objections, point 783.
(166) Supplement to Form CO, p. 17.
(167) Medium-term plan 2001-2005 France Baco, p. 20. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(168) Record of the meeting of the Acquisitions Committee of 17 October 1997, page 6. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(169) Point 786.
(170) Points 788 and 789.
(171) Medium-term plan 2001-2005 Baco France, pp. 34, 39, 41 and 43. Annex 4 supplied in reply to point 113 of the questionnaire of 29 June 2001.
(172) Medium-term plan 2001-2005 Baco France, pp. 34, 39, 41 and 43. Annex 4 supplied in reply to point 113 of the questionnaire of 29 June 2001.
(173) Annexes supplied by the parties in response to point 69 of the questionnaire of 29 June 2001.
(174) Reply to the statement of objections, point 784.
(175) Supplement to Form CO and reply to point 30 of the questionnaire of 20 March 2001.
(176) Crédit Suisse First Boston report on Legrand (11 September 2000).
(177) Crédit Suisse First Boston report on Legrand (11 September 2000).
(178) Legrand, Form 20-F SEC.
(179) Form CO, p. 54.
(180) Replies to the Article 11 questionnaire of 28 February 2001, p. 11.
(181) Reply to questionnaire of 29 June 2001 (point 106).
(182) Legrand, Form 20-F SEC.
(183) Moeller, reply to phase I questionnaire.
(184) Crédit Suisse First Boston report on Legrand (11 September 2000).
(185) Legrand, Medium-term plans and Schneider, Three-year plans.
(186) E-mail sent by the parties on 28 February 2001.
(187) Legrand, Medium-term plans.
(188) Legrand, Three-year plans.
(189) Information meeting Schneider Electric/Legrand, 15 January 2001.
(190) Legrand, Medium-term plans.
(191) Schneider, Three-year plan (2001-2002-2003).
(192) Legrand, Medium-term plans.
(193) Legrand, Medium-term plans.
(194) Schneider, Three-year plan.
(195) Schneider, Three-year plan.
(196) Legrand, Medium-term plans.
(197) Legrand, Medium-term plans.
(198) Legrand, Medium-term plans.
(199) Legrand, Medium-term plans and Form 20-F SEC.
(200) Schneider, Convergence guidelines.
(201) Legrand, Form 20-F SEC.
(202) Schneider, documents provided in reply to question 311.
(203) Reply by Schneider to Hagemeyer questionnaire.
(204) Legrand, Medium-term plans.
(205) Legrand, Medium-term plans.
(206) Reply by the parties to point 148 of the questionnaire of 6 April 2001.
(207) Medium-term plan Spain Bticino, page marked PMT2C'4. Document supplied in response to point 315 of the questionnaire of 6 April 2001.
(208) Legrand, Medium-term plans.
(209) Legrand, Medium-term plans.
(210) Crédit Suisse First Boston report on Legrand (11 September 2000), Dresdner Kleinwort Wasserstein report on Schneider (18 January 2001).
(211) Legrand, Medium-term plans.
(212) Schneider, reply to question 84.
(213) Hager, reply to phase I questionnaire.
(214) Reply by the parties dated 22 June 2001 to a request for information made by the Commission on 19 June 2001.
(215) Points 500 and 533.
(216) E-mail sent by the parties on 30 July 2001 in reply to a request for information made by the Commission on 20 July 2001.
(217) Reply by the parties dated 19 July 2001 to a request for information made by the Commission on 12 July 2001.
(218) Reply by the parties dated 19 July 2001 to a request for information made by the Commission on 12 July 2001.
(219) Form CO, p. 90.
(220) Medium-term plan 2001-2005 Legrand SNC France. Document annexed to Legrand's reply to point 315 of the questionnaire of 6 April 2001.
(221) Reply from ABB dated 7 March 2001.
(222) Reply from Siemens dated 28 February 2001.
(223) Reply from GE dated 26 February 2001.
(224) Reply from Hager dated 6 March 2001.
(225) Point 569.
(226) Reply to the statement of objections, point 573.
(227) Point 577.
(228) See inter alia the reply from Rexel dated 25 June 2001.
(229) Medium-term plan Italy Bticino, page marked Annex 4.
(230) Medium-term plan Legrand Portugal, page marked PMT 8.
(231) On the page marked (PMT 7).
(232) Eunea's 1996 Three-year strategic plan, p. 3.
(233) Point 580.
(234) See points 495 to 502.
(235) Medium-term plan [...]* Bticino, page marked PMT2C'4. Document supplied in response to point 315 of the questionnaire of 6 April 2001.
(236) Medium-term plan Legrand, 2001-2005 [...]*, pages marked LRP 3 (next). Document supplied in response to point 315 of the questionnaire of 6 April 2001.
(237) Page marked LRP 7.
(238) Page marked Annex 3.
(239) Medium-term plan Arnould, page marked Annex 3.
(240) Medium-term plan Legrand, page marked PMT2C'4.
(241) Medium-term plan Spain Bticino, page marked PMT2C'4. Document supplied in response to point 315 of the questionnaire of 6 April 2001.
(242) Medium-term plan 2001-2005 Legrand Italy, page marked Annex 4.
(243) Alombard product/market strategy. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(244) See points 495 to 502.
(245) The data provided by the parties refer to "segment 5.A.1" and therefore include telephone and television sockets, weatherproof wiring accessories and VDI sockets sold as part of the range of sockets and switches. However, the parties have stated that market shares do not vary significantly if telephone, television and VDI sockets and weatherproof wiring accessories are excluded.
(246) See above quotations, footnote 210.
(247) The market shares of all competitors in the sockets and switches market not featured in Table 37 reflect data for 1999 provided by the parties in Form CO.
(248) Medium-term plan Legrand Greece, referred to in footnote 211.
(249) Reply dated 10 July 2001, question 21, referring to the replies to questions 20 and 4.
(250) Reply dated 10 July 2001, question 19.
(251) Reply from Simon to the phase II questionnaire for competitors (segment 5).
(252) The parties have not provided estimates of the market shares of those competitors for the purpose of the present proceedings.
(253) Market shares according to the parties' reply to the statement of objections, point 659.
(254) SAFT URA - Medium-term plan 2001-2005.
(255) Kaufel, e-mail of 3 July 2001.
(256) Reply by Hager dated 6 March 2001.
(257) Reply by the parties to point 239 of the questionnaire of 6 April 2001.
(258) Annex supplied by Legrand in reply to point 239 of the questionnaire of 6 April 2001.
(259) Form CO, p. 102.
(260) Legrand catalogue for 2001, p. 206 et seq.
(261) Arnould general catalogue for 2001.
(262) Form CO, p. 102. See also the Annex supplied by Legrand in reply to point 132 of the questionnaire of 6 April 2001.
(263) Reply by Rexel to the Commission's phase II questionnaire.
(264) Sarel general catalogue for 2001, pp. 448-449.
(265) Polylux, reply dated 9 July 2001.
(266) Record of the meeting of the Acquisitions Committee of 17 October 1997. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(267) Medium-term plan 2001-2005 France Baco, p. 9. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(268) Point 798 et seq.
(269) Schneider internal document supplied in response to point 113 of the questionnaire of 10 July 2001. Record of the meeting of Schneider's Acquisitions Committee of 17 October 2001, p. 5.
(270) Medium-term plan 2001-2005 France Baco. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(271) Page 11.
(272) Page 9.
(273) Page 5.
(274) Record of the meeting of the Acquisitions Committee of 17 October 1997. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(275) Point 801 et seq.
(276) See Table 26 above and reply to the statement of objections, point 799.
(277) See Table 26 above.
(278) Medium-term plan 2001-2005 Baco France, pp. 39 and 41. Document supplied in response to point 113 of the questionnaire of 10 July 2001.
(279) Medium-term plan 2001-2005 Baco France, pp. 39, 41 and 43. Document supplied in response to point 113 of the questionnaire of 10 July 2001.
(280) Medium-term plan 2001-2005 France Baco, pp. 39, 41 and 43. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(281) Products/services supply plan 2000 Electromechanical dialogue. Annex 8 supplied in reply to point 40 of the questionnaire of 20 March 2001.
(282) Record of the meeting of the Acquisitions Committee of 17 October 1997, p. 2. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(283) Medium-term plan 2001-2005 France Baco, p. 20. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(284) Record of the meeting of the Acquisitions Committee of 17 October 1997, p. 6. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(285) Reply by the parties to point 13 of the questionnaire of 15 March 2001.
(286) Reply by the parties dated 20 July 2001 to a request for information made by the Commission on 10 July 2001.
(287) Point 806 et seq.
(288) Reply to the statement of objections, point 807.
(289) Medium-term plan 2001-2005 France Baco, p. 34. Document supplied in response to point 113 of the questionnaire of 29 June 2001.
(290) Commission notice on remedies acceptable under Council Regulation (EEC) No 4064/89 and under Commission Regulation (EC) No 447/98 (OJ C 68, 2.3.2001, p. 3).
2004/275/EC: Commission Decision of 10 October 2001 declaring a concentration to be incompatible with the common market — Council Regulation (EEC) No 4064/89 (Case COMP/M.2283 — Schneider/Legrand) (notified under document number C(2001) 3014) (Text with EEA relevance)

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