Article 5
This Decision is addressed to: Erste Bank der oesterreichischen Sparkassen AG Graben 21 A - 1010 Wien Raiffeisen Zentralbank Österreich Aktiengesellschaft Am Stadtpark 9 A - 1030 Wien Bank Austria Aktiengesellschaft Vordere Zollamtsstraße 13 A - 1030 Wien Bank für Arbeit und Wirtschaft Aktiengesellschaft Seitzergasse 2-4 A - 1010 Wien Österreichische Postsparkasse Aktiengesellschaft Georg-Coch-Platz 2 A - 1018 Wien Österreichische Volksbanken-Aktiengesellschaft Peregringasse 3 A - 1090 Wien Niederösterreichische Landesbank-Hypothekenbank Aktiengesellschaft Kremser Gasse 20 A - 3100 St.Pölten Raiffeisenlandesbank Niederösterreich-Wien AG Friedrich Wilhelm Raiffeisenplatz 1 A - 1020 Wien This Decision shall be enforceable pursuant to Article 256 of the EC Treaty. Done at Brussels, 11 June 2002. For the Commission Mario Monti Member of the Commission (1) OJ 13, 21.2.1962, p. 204/62. (2) OJ L 1, 4.1.2003, p. 1. (3) OJ L 354, 30.12.1998, p. 18. (4) OJ C 48, 24.2.2004. (5) On 1 January 1994, the date of Austria's accession to the European Economic Area, the last remaining legal bases for all the agreements were removed. (6) 42.290 (RLB). (7) In terms of population size, the number of bank branches and bank employees in Austria is well above the EU average. Banks have basically two main sources of profit: net interest income, by far the largest source of income, and the profit from service transactions and commission business. In a nutshell, oversupply and weak demand for credit in Austria were bringing pressure to bear on interest margins and hence making possible only slight increases in net interest income, whereas commission income was enjoying dynamic growth. (8) 41.916 (Erste). A shakeout occurred only sporadically and slowly (1990 merger between Zentralsparkasse and Länderbank, 1992 merger between Girocentrale and Österreichisches Creditinstitut, 1997 acquisition of Creditanstalt by Bank Austria and of GiroCredit by Erste Bank). (9) For evidence see Section 5.4. (10) See footnotes 141 and 283 and footnotes 130, 152, 168, 280 and 350. (11) See recital 279. (12) 41.570 (BA). (13) 23.274 et seq. (14) 23.178 et seq. (15) 20.743 et seq. (16) In Austria a distincti on is made between single-tier segments, as in the case of joint stock banks (Aktienbanken), provincial mortgage banks (Landes-Hypothekenbanken), building societies (Bausparkassen) and specialised banks, and multi-tier, or "decentralised", segments. Savings banks (Sparkassen) and credit unions (Volksbanken) have a two-tier structure, and agricultural credit cooperatives (Raiffeisenbanken) have a three-tiered one. Within these multi-tiered segments, which call themselves "bank groupings" (Bankengruppen), the respective lead institution performs coordination functions for the line of business carried on. The multifarious relationships and mutual rights and obligations between lead institutions and individual sector members are governed by the Banking Act (Bankwesengesetz). (17) For descriptions of the Austrian banking market, see inter alia Commission decisions COMP/M.2125, HypoVereinsbank/Bank Austria, recital 21, COMP/M.2140, BAWAG/PSK, recital 9 and COMP/2402, Creditanstalt/RZB/JV, recital 15. The market shares mentioned further on in this section relate to retail banking and corporate banking (lending and deposit sides) and were obtained from the public versions of the abovementioned decisions, annual reports, publications and other publicly available sources. Although in terms of its scope the Lombard network goes far beyond retail and corporate banking, covering all essential competition parameters (see below), these market shares give a representative picture of the overall market positions of the banks and bank groupings concerned. (18) References in this Decision to "CA" are to be read as references to Creditanstalt-Bankverein, which was subsequently renamed Creditanstalt AG, prior to the merger. (19) COMP/M.2125, HypoVereinsbank/Bank Austria. (20) References in this Decision to "GiroCredit" are to be read as references to GiroCredit Bank Aktiengesellschaft der Sparkassen before the merger. References to "Erste" are, in respect of the period before 4 October 1997, to be read as references to Erste oesterreichische Spar-Casse Bank, and in respect of the period after that date, as references to Erste Bank der österreichischen Sparkassen AG. (21) Within the savings bank grouping there are special links which confer on it a group-like structure. All Austrian savings banks hold shares in Erste, which in turn has holdings in a number of savings banks. In its capacity as lead institution, Erste is required to perform various services for the savings banks affiliated to it, which result in a dense network of mutual rights and obligations. (22) The market share of Erste on its own comes to approximately 7 %. (23) The first tier comprises some 615 legally independent local agricultural credit cooperatives, which are engaged mainly in the business of retail banking and corporate banking for small and medium-sized enterprises. As the second tier they operate at the level of the Austrian provinces eight regional provincial agricultural credit cooperatives (Raiffeisen-Landesbanken - RLB), the shares in which are held by the primary banks. The RLB themselves engage in retail banking and corporate banking business and act as clearing houses for the primary banks, supplying extensive business and consultancy services to them. The third tier consists of RZB, more than 80 % of the shares in which are held by the RLB. Although the agricultural credit cooperatives are legally independent entities not subject to directions from the RLB and/or RZB, they have, owing to the united front they present in the market and the regionality principle, a restricted competitive relationship with one another. (24) The market share of RZB on its own comes to approximately 2 %. (25) Since 1 December 2000 74,82 % of PSK's share capital has been held by BAWAG and 25,18 % by KSP Unternehmensbeteiligungsgesellschaft mbH; see COMP/M.2140, BAWAG/PSK. (26) BAWAG and PSK continue to operate, however, as legally independent limited companies and banking institutions. (27) The market share of ÖVAG on its own comes to less than 1 %. (28) "NÖ" is an abbreviation of Niederösterreich (the province of Lower Austria). (29) Before that, the province of Lower Austria was NÖ Hypo's sole shareholder. ÖVAG and NÖ Hypo continue to operate as limited companies and banking institutions. (30) Like the other seven provincial mortgage banks (Landes-Hypothekenbanken), NÖ Hypo is an ordinary member of the Association of Austrian Provincial Mortgage Banks (Verband der österreichischen Landes-Hypothekenbanken, hereinafter called Hypo-Verband). (31) Before this, RLB had carried out transactions for its own account to only a very limited extent. References to "RBW" are, in respect of the period before the re-registration, to be read as references to Raiffeisenbank Wien reg Gen mbH. (32) Definitions: 1. Retail banking: (a) deposits: customers can dispose of sight deposits at any time (these generally consist of low-interest-bearing current, payroll and pension accounts). Savings deposits are cash deposits in accounts which, unlike sight deposits, serve investment purposes and they can be withdrawn on production of a "(capital) savings booklet" (in the case of "variable" savings deposits, the interest payable may be altered by the credit institution in the light of money and capital market developments, while "fixed-interest" savings deposits have an agreed duration and interest rate). "Preferential rates" may be offered for deposits (which may then be called "bonus-carrying" deposits). Charges/fees may be levied, e.g. for maintaining an account, entering amounts into an account, cheque transactions or the use of ATM cards; (b) loans: these cover personal loans (including building loans and mortgages), "works council members loans" (both in Austrian schillings and in foreign currency) and charges/fees (in particular the "handling fee"); (c) other areas are payment transactions, in particular transfer charges (both in Austria and cross-border) and security transactions (e.g. custody charges, buying and selling fees). 2. Corporate banking can be subdivided into banks and non-banks: (a) the former category comprises interbank business (interbank charges, for both domestic and cross-border payment transactions, including value-date rules, and for letters of credit), federal financing and bill discounting/collection charges; (b) non-banks corresponds, with regard to deposits, to retail banking. In the case of loans, there are both operating loans (including the "fixed advance" or "cash advance", a short-term loan to the most creditworthy corporate customers, in both domestic and foreign currency, where the interest rate is based on the money market and is fixed, as is the duration) and investment credit; (c) other services in the corporate banking sphere are payment transactions, export financing (in particular the "house bank margin" and the "house bank margin commission"), documentary business and security issues. (33) The word Konditionen (conditions) is often used in the original (German) version of the documents cited in this Decision to mean "interest rates" or "rates", and has been so translated here. (34) Source: OeNB. (35) The document was subsequently found in the course of the inspections. It is a list drawn up (by BA) of measures decided on at the Lombard Club meeting on 8 May 1996; see recital 248. (36) See section 5.2. (37) The sources of verbatim quotations are cited in a footnote at the end of the last paragraph dealing with the relevant meeting. (38) See Article 20(2) of the 1979 Banking Act. (39) See Article 20(3) of the 1979 Banking Act; no such agreements have been concluded since 1980. (40) See Article 21(9) of the 1979 Banking Act. (41) See Grubmayr, Die Ausnehmungen der Banken, Versicherungen und Genossenschaften aus dem Kartellgesetz (1991) p. 8 et seq. Only the competition agreement and the base rate agreement remained in force until the end of 1993. (42) Higher Restrictive Practices Court 9 September 1991, Oct 7/91 - Current account charges - WBl 1991, pp. 394, 396. (43) Gugerbauer, Die kartellrechtliche Bankenbereichsausnahme im EWR, Österreichisches Bank-Archiv 9/92, p. 770 et seq. (44) T. Eilmansberger, EWG - Kartellrecht und Banken, in S. Griller, ed., Banken im Binnenmarkt (1992), p. 711 et seq. (45) Profil of 20 September 1993, 2767; 2413, 2417. (46) 26.309; 25.111. (47) 43.101 (BA). (48) Austria Presse Agentur (APA) of 27 January 1994. (49) APA of 1 September 1994. (50) Salzburger Nachrichten of 25 November 1997. (51) 6867; 6884 and 85; 6888; see recital 347. (52) 8586 et seq. (53) 21.251 et seq. (54) 8523 et seq.; 8569 et seq.; 8573 et seq.; 32.223 et seq. (55) 39. (56) 21.361 et seq. (57) 1564 et seq. (58) 12.175 et seq. (59) 14.342; 14.259. (60) e.g. 21.189. (61) 4359 et seq. (62) On the ORF's "Journal zu Gast" programme, quoted in the press on 21 February 2001. (63) 41.519 (BA). (64) The subheadings in italics are intended only to assist the reader and have no legal significance. (65) 1914. (66) See recital 306. (67) 23.051, 23.053. (68) 23.178 et seq. (69) 36.339; 14.321; 1286 et seq.; 2314. (70) 1278; 790; 13.175; 1972; 14.431; 12.102. (71) 14.634. (72) As a rule RZB represented the agricultural credit cooperative grouping at committee meetings. In the case of Vienna Lending and Deposit Rates Committee meetings, this role was occasionally performed by RLB/RBW. (73) See recital 257. (74) 20.210 et seq. (75) 20.764 (CU stands for credit union). (76) 20.952. (77) 20.757. (78) 4231; 14.370. (79) The key lending rates are the rates at which the National Bank makes central bank money available to credit institutions. See, for example, footnotes 144, 153, 157, 216, 217, 244, 261, 285 and 319. (80) See, for example, footnote 144. (81) 38.174. (82) See, for example, 26.489, 26.491, 38.174 or 31.640 et seq. (83) 14.439. (84) 20.801. (85) See footnote 246. (86) 26.726. (87) See, for example, footnote 224. (88) See, for example, footnote 160. (89) 15.431; 20.755. (90) See, for example, footnote 160. (91) See, for example, footnote 225. (92) 26.726. (93) See, for example, footnote 144. (94) See, for example, footnote 154. (95) See, for example, footnote 195. (96) See footnote 210. (97) See footnote 217. (98) See footnote 292. (99) See footnote 217. (100) See footnote 247. (101) See footnote 262. (102) See footnotes 279 and 309. (103) See footnote 288. (104) See footnote 342. (105) See footnote 344. (106) 23.178. (107) See footnote 216. (108) See footnote 216. (109) See, for example, footnote 271. (110) See, for example, footnote 210. (111) See footnotes 216 and 304. (112) See, for example, recital 187 et seq. (113) See footnote 264. (114) See, for example, footnotes 262 and 332. (115) See footnote 263. (116) See, for example, footnotes 277 and 189. (117) See footnotes 155 and 226. (118) 14.634. (119) See, for example, footnote 155. (120) See, for example, footnote 167. (121) See footnote 218. (122) See footnote 244. (123) See footnote 311. (124) See footnote 351. (125) See footnote 233. (126) See, for example, footnotes 210, 215, 233, 234, 242 and 283. (127) e.g. 2560. (128) 108; 136 to 138. (129) 1991. (130) 3507 et seq. (131) 2535 et seq. (132) See recitals 190. (133) See recitals 241. (134) 2582. (135) See, for example, 26.489, 26.491, 38.174 or 31.640 et seq. (136) 38.174. (137) 14.439. (138) 13.704 and evidence at recital 128. (139) 2565. (140) 36.030 et seq. (141) 20.682. (142) A footnote, the reference is at the end of the last paragraph dealing with the relevant committee in each case, indicates where to find quotes (the arabic numerals refer to the page numbers of the investigation file). (143) i.e. the interest rate paid by the national bank on the purchase of bills of exchange or securities which are not yet mature, for the period running from the date of purchase to the date of maturity. The Austrian National Bank's discount rate has not existed since 1 January 1999, when it was replaced by the base rate. (144) 1310 et seq.; 14.491 et seq.; 12.041 et seq. (145) In this case amounting to several tens of millions. (146) 38.167; 38.157; 38.159. (147) 14.251; 1238. (148) i.e. CA, BA, RZB, BAWAG, PSK, GiroCredit, Erste and ÖVAG. (149) 26.398. (150) 1203. (151) CA - 3 Banken Beteiligungsfonds Aktiengesellschaften; Bank Austria Wohnbaubank Aktiengesellschaft; S-Wohnbaubank Aktiengesellschaft; Hypo-Wohnbaubank Aktiengesellschaft; Raiffeisen Wohnbaubank Aktiengesellschaft; IMMO-Bank Aktiengesellschaft; BAWAG Wohnbaubank Aktiengesellschaft. (152) 19.565 et seq. (153) 2474; 14.336. (154) 14.485; 12.369. (155) 14.483; 14.734 et seq.; 491; 12.212 et seq.; 26.473, 26.475 and 38.174. (156) 2020; 26.499. (157) 1235. (158) 2019. (159) See 2018. (160) 14.474; 706. (161) The Vienna interbank offered rate was the rate at which banks could lend each other money in the short term, i.e. for a period of 3 to 6 months (three or six month VIBOR); it corresponded to the monthly average of the short-term rates published by eight credit institutions in Vienna; it was replaced on 1 January 1999 by the EURIBOR. (162) 2467 et seq. (163) 16.328. (164) 14.249; 491. (165) 15.773 et seq.; 12.210; 26.577. (166) 2469 et seq. (167) 34.645. (168) 31.673. (169) 26.588. (170) This took the form of attempts by creditors to apply pressure on banks by pointing to more favourable offers by other banks. (171) 3669; 15.767; 31.686. (172) 15.431. (173) 20.743 et seq.; 2014 et seq.; 700 et seq.; 26.620. (174) 26.458. (175) 38.169. (176) APA, 2 August 1994. (177) 38.168. (178) 22.165 et seq. (179) 3662. (180) 14.239 et seq. (181) The secondary market is the market for securities already in circulation (especially on the stock exchange). An average secondary market yield is regularly calculated from the yields of these securities. (182) 16.358; 649; 15.755 et seq.; 14.470. (183) 3971 et seq. (184) 3971 et seq. (185) 14.463 et seq.; 26.778; 36.331. (186) 20.020 et seq. (187) 13.704. (188) 2461. (189) 14.225. (190) 19.701. (191) 9683. (192) 4521 et seq.; 5562. (193) 2466. (194) 1226; 2343. (195) 172. (196) 1226; 2343; 36.334. (197) 1197. (198) 36.335. (199) 1998 et seq.; 12.086; 2321; 2325; 14.455; 1296 et seq. (200) 1318. (201) 2327; 2333. (202) 1194. (203) 1195. (204) 12.387. (205) 19.185. (206) 3618 et seq. (207) 17.308; 17.311. (208) 36.338. (209) 19.532. (210) 2993; 1292. (211) 12.388. (212) 14.326 et seq.; 1991; 1290 et seq. (213) 14.223; 1221 et seq. (214) 3610 et seq. (215) 20.117; 1454. (216) 1288 et seq.; 250 et seq.; 14.447; 38.153; 20.139 et seq.; 4101. (217) 2316; 14.219. (218) 36.339; 14.321; 1286 et seq.; 2314. (219) See 2626. (220) 3598 et seq. (221) All securities listed on the Vienna stock exchange for official dealing or regulated unofficial dealing are included in the arrangement. The transactions must therefore as a rule be settled in accordance with the provisions of the Arrangement Order. The execution of arrangement transactions is ensured by an arrangement security deposited by participants. (222) 4657 et seq.; 38.171; 38.172. (223) 19.534. (224) 1189 et seq.; 914 et seq. (225) 14.315 et seq.; 1284 et seq.; 914 et seq.; 26.500. (226) 14.445; 2308; 1282. (227) 3984; 2389 et seq. (228) 3984; 15.832 et seq. (229) 2310. (230) 3594. (231) 2626; 27.014. (232) 38.161. (233) 2516. (234) 14.439 et seq.; 786 et seq.; 2398. (235) 14.218; 2407. (236) 27.037. (237) 36.443 et seq. (238) 2391 et seq.; 2387. (239) 1184; 3555. (240) See footnote 239. (241) 14.437; 27.054. (242) 488 et seq.; 36.344; 38.175; 23.632. (243) 36.345 et seq. (244) 1278; 790; 13.175; 1972; 14.431; 12.102. (245) 2371; 1149. (246) 2374. (247) 14.309 et seq.; 36.058; 243 et seq. (248) 16.327; 14.310. (249) 2358 et seq. (250) 12.644. (251) 38.151; 38.170. (252) 11.600 et seq. (253) 38.158. (254) 908 et seq.; 14.430. (255) 12.112; 2530; 793; 797 et seq. (256) 1996 et seq. (257) 2535. (258) 3543 et seq. (259) 19.540. (260) Interest rate for short-term money market and open market transactions. (261) 905; 1967; 4104. (262) 14.299; 12.530; 236; 2547. (263) 36.143 et seq. (264) 895. (265) 1214 et seq.; 16.326. (266) 496. (267) 4144. (268) 12.775. (269) 27.388. (270) See footnote 268. (271) 1963 et seq.; 14.423; 2554; 230; 36.055. (272) 38.164. (273) The record refers erroneously to the Minilombard, but it is the Federal Lending and Deposit Rates Committee of 26 February 1996 which is meant (see recital 221). (274) 1181. (275) 19.543. (276) 19.545. (277) 12.125; 889 et seq.; 1296 et seq.; 27.405. (278) 38.165 et seq.; 1962; 21.639. (279) 12.127; 12.407; 1958 et seq.; 14.420; 1267 et seq. (280) 3507 et seq. (281) 1147. (282) 1178. (283) 12.129; 2577; 36.053; 1954 et seq. (284) 14.411; 882; 36.051. (285) 36.048. (286) 14.201 et seq. 1206 et seq. (287) 36.160. (288) 1952. (289) 38.163. (290) 27.337. (291) 14.287 et seq.; 12.131 et seq.; 12.140; 1952; 36.049. (292) 2046; 1144; 2582 et seq. (293) 38.162. (294) According to a document submitted by BA, the [representatives] agreed to ATS 20 million instead of ATS 30 million; 27.300. (295) 1172; 27.472; 14.407. (296) 36.171. (297) 42.234 et seq. (298) 12.142; 14.407 (see footnote 295). (299) 2585. (300) NB: One basis point equals one hundredth of a percentage point. (301) 1171. (302) 39. (303) 14.195 et seq.; 15.826; 37.681 et seq. (304) 14.405; 773; 12.148. (305) 19.778. (306) 19.780. (307) 1167; 776 et seq. (308) 37.683 et seq. (309) 36.041; 12.151; 773; 14.396. (310) 4298 et seq.; 4306 et seq.; 4299 et seq.; 3487. (311) 14.192. (312) In January 1999 APA reported that Raiffeisen Bausparkasse had carried out an interest-rate cut and a rate comparison which was severely criticised by its competitors (s-Bausparkasse, Wüstenrot). The five building societies had "agreed not to publicise a comparison of their savings products. Raiffeisen had broken this agreement by publishing in the previous week and opened the way to fresh competition. With this policy, the building societies would beat even the banks, which themselves do not advertise rate comparisons", APA 21 January 1999; Die Presse 22 January 1999. (313) 19.556 et seq. (314) See footnote 292. (315) 2522. (316) 1259; 20.457. (317) Since 1998, Bayerische Hypo- und Vereinsbank AG. (318) Since 1998, SKWB Schoellerbank Aktiengesellschaft. (319) 14.391 et seq.; 718; 2540. (320) 2526. (321) 1450. (322) 14.387 et seq.; 2497 et seq.; 1257. (323) See footnote 321. (324) 37.300. (325) 14.181; 864; 15.831. (326) 1713. (327) 1946; 14.282; 854; 1257. (328) 4250; 4320. (329) 848 et seq.; 14.285 et seq.; 3301 et seq.; 1942 et seq.; 1253; 27.543. (330) 842 et seq. (331) 2544. (332) 842 et seq. (see footnote 330); 14.282. (333) 14.498. (334) 4471. (335) 35.837. (336) 19.565 et seq. (337) 2637; 1376 et seq. (338) 4231; 14.370. (339) 19.573. (340) 1247. (341) 1914. (342) 2560. (343) 1631 et seq.; 1245; 14.274; 14.360 et seq.; 15.716. (344) 15.716 (PSK). (345) 2565; 14.360. (346) 4450. (347) 12.172; 36.168. (348) 2581; 14.270; 4383; 1600; 1243; 12.173. (349) 36.030 et seq.; 38.179 et seq.; 20.682, see footnote 141. (350) 36.362. (351) 954; 1241 et seq. (352) 16.335; 21.132. (353) 1033; 14.262 et seq., 21.159. (354) 14.342; 12.175; 1564. (355) 12.178; 16.582; 1553; 14.258; 823. (356) VKI - Verein für Konsumenteninformation. (357) AK - Arbeiterkammer. (358) 22.189. (359) Die Presse on 21 November and Salzburger Nachrichten on 25 November. (360) 36.365. (361) 3884. (362) 2049; 2480; 38.173; 4009. (363) 4359. (364) 19.855; 19.858. (365) 19.797; 19.801; in 1992, they had already considered whether to invite ABN Bank Austria and West-LB, since at the time these institutions were "particularly 'actively' involved in export financing" and were undercutting the minimum margins agreed by the other banks (see recital 336). The problem was solved, however, by talking directly to the banks concerned, West-LB making a "definite promise" to stop undercutting the agreed margins; 34.148; 38.177. (366) 19.805; 19.839. (367) 19.792 et seq.; 38.176; 26.256. (368) 19.795; 19.800. (369) 19.808; 19.811. (370) The export financing system distinguishes 11 types of liability. G3 refers to tied loans and G9 to purchases of receivables (which together made up some 53 % of the National Bank's liability undertakings in 1997). (371) See footnote 295. (372) 21.229 et seq. (373) 21.235. (374) 21. 246 et seq. (375) See footnote 52. (376) For evidence in the file, see footnote 51. (377) See footnote 52. (378) 8523 et seq.; 8569 et seq.; 8573 et seq. (379) 7569 et seq.; 7503, 7507 et seq. (380) 8249 et seq. (381) See recitals 145 and 257. These committees met in Burgenland, Carinthia (e.g. Klagenfurt, Villach), Lower Austria (e.g. Stockerau, Wr Neustadt, Hollabrunn, St Pölten), Upper Austria (e.g. Linz, Steyr, Wels), Salzburg, Styria (e.g. Graz, Weiz, Bruck/Mur), the Tyrol (e.g. Innsbruck) and Vorarlberg (e.g. Bregenz). Naming, or even more so describing, all the regional cartel meetings is beyond the scope of this Decision. This section therefore focuses on the functioning of the regional committees in the overall context of the network and their links with the talks organised in Vienna. (382) 23.178. (383) See footnote 362. (384) See footnote 308; 25.486. (385) See footnote 384. (386) See recital 145. (387) See footnote 242; 38.1754. (388) 2327; 2333. (389) See footnote 287 and recital 265. (390) 2019. (391) See recital 98; however, the RZB representative also passed on the results of the Federal Lending and/or Deposit Rates Committee talks to other banks (such as WiF-Bank or Kathrein & Co Bank AG). (392) See 2018. (393) 20.210 et seq. (394) e.g. 21.159, 21.111, 20.944, 20.682. (395) See 643, 23.027. (396) 43.234 et seq. (397) 488 et seq.; 36.344; 38.175, 23.632. (398) 41.916 (Erste). (399) 42.290 (RLB). (400) 41.875 (Erste). (401) According to the representatives of ÖVAG and NÖ Hypo at the oral hearing in January 2000. (402) With the exception of the base rate and competition agreements, which lost their legal basis only at the end of 1993. (403) See section 5.4. (404) See 36.048, 36.316 and the examples given in section 14.3.3. (405) Vienna and Federal Lending and/or Deposit Rates Committees (including the Consumer Lending Rates and Liberal Professions Lending Rates Committees), the Minilombard and Controller Committees. (406) Report (43.186), recital 163. (407) The Commission obtained the opinion of an economist on the report. This opinion indicates a number of methodological and academic weaknesses in the report. The report's writer subsequently refuted this criticism. The Commission will not take account of the dispute between the experts in the following considerations, and will thus not go into the banks' criticisms of the quality of the opinion. (408) e.g. to increase consumer lending rates by 0,5 % in January 1995 or to cut savings rates in November/December 1996. (409) At the deposit rates talks on 19 May 1995 it was expressly decided not to change lending rates. (410) In recitals 103 and 104. (411) Report, recital 77. (412) See recital 7. (413) 42.303 (RLB), 42.229 (RZB). (414) 42.082 (BAWAG). (415) Case 172/80 [1981] ECR 2021, paragraphs 6 et seq. (416) 42.228 (RZB). (417) OECD, Enhancing the role of competition in the regulation of banks, DAFFE/CLP (98) 16, p. 9. (418) Crédit Lyonnais, Commission Decision 98/490/EC of 20 May 1998, OJ L 8, 8.8.1998, p. 28. (419) Directive 2001/24/EC of 4 April 2001, OJ L 125, 5.5.2001, p. 15. (420) See, for example, Banco di Sicilia, Commission Decision 2000/600/EC of 10 November 1999, OJ L 256, 10.10.2000, p. 21; Crédit Lyonnais, cited above; Crédit Foncier, Commission Decision 2001/89/EC of 23 June 1999, OJ L 34, 3.2.2002, p. 36. (421) 41.579 (BA), 42.106 (BAWAG). (422) Second Report on Competition Policy, point 52. (423) Case 172/80 Züchner [1981] ECR 2021, paragraph 6. (424) Although, in three subsequent decisions (1986), the Commission did not expressly adopt a position on interest rate agreements, the Court of Justice confirmed in Case 267/86 Van Eyke [1988] ECR 4769 that Article 81(1) was applicable to interest rate agreements between banks. (425) Press release, 16 November 1989, IP/89/869. (426) OJ L 95, 9.4.1992, p. 50, essentially upheld by the Court of First Instance in Cases T-39/92 and T-40/92 CB and Europay v Commission [1994] ECR II-49. (427) See, for example, judgment of the Court of First Instance delivered on 20 March 2002 in Case T-16/99 Lögstör Rör (Deutschland) GmbH v Commission, [2002] ECR II-1633, paragraph 327. (428) The EFTA Surveillance Authority itself has no longer been able to take action on the matter since 1995; see Article 4 of the Agreement on Transitional Arrangements for a period after the Accession of certain EFTA States to the European Union, reproduced in Tichy/Dedichen, Securing a Smooth Shift Between the Two EEA Pillars, 32 CMLRev (1995), pp. 131, 136, and judgment of the Court of Justice in Case C-321/97 Andersson v Sweden [1999] ECR I-3551. (429) Court judgments relating to the implementation of directives by EFTA States before their accession to the EU seem in the present instance, to suggest that the Commission does not have competence in respect of 1994; see opinion of Advocate General Saggio in Case C-290/98 Commission v Austria, in which it was assumed that Austria was obliged to comply with Community law only as from the time of its accession to the EU. (430) Case T-1/89 Rhône-Poulenc v Commission [1991] ECR II-867, paragraph 120; Joined Cases T-25/95 etc. Cimenteries CBR and Others v Commission [2000] ECR II-491, paragraph 2061. (431) Case 48/69 ICI v C ommission [1972] ECR 619, paragraph 64. (432) Established case-law; see Joined Cases 40/73 etc. Suiker Unie and Others v Commission [1975] ECR 1663, paragraphs 173 and 174; Case T-7/89 Hercules Chemicals NV-SA v Commission [1991] ECR II-1711, paragraph 258; Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij [1999] ECR II-931, paragraph 720. (433) Joined Cases T-25/95 etc. Cimenteries CBR and Others v Commission [2000] ECR II-491, paragraphs 1852 and 1898. (434) Case C-49/92 P Commission v Anic Partecipazioni [1999] ECR I-4125, paragraph 121; Joined Cases T-202/98 etc. Tate & Lyle and Others v Commission [2001] ECR II-2035, paragraph 58; Joined Cases T-45/98 and T-47/98 Krupp Thyssen Stainless and Others v Commission, judgment delivered on 13.12.2001, not yet reported, paragraph 152; Case T-9/99 HFB and Others v Commission, judgment delivered on 20.3.2002, not yet reported, paragraph 284. (435) Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij [1999] ECR II-931, paragraph 696; Case T-9/99 HFB and Others v Commission, judgment delivered on 20.3.2002, not yet reported, paragraph 186. (436) Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij [1999] ECR II-934, paragraph 697. (437) See section 5.2. (438) Including the Vienna and Federal Lending and/or Deposit Rates Committees, the Consumer and Liberal Professions Lending Rates Committees, the Minilombard Committee and the Controller Committee. (439) For evidence, see the documents cited in section 5.4. (440) 42.206 (RZB). (441) Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij [1999] ECR II-931, paragraph 741; Joined Cases T 45/98 and T-47/98 Krupp Thyssen Stainless GmbH and Others v Commission, judgment delivered on 13.12.2001, not yet reported, paragraph 152. (442) See, for example, Commission Decision of 21 November 2001 in the Vitamins case, paragraph 728. (443) See footnote 344; 22.165 et seq. (444) 394. (445) 14.634. (446) 14.694, 14.648. (447) 47.135, 47.138. (448) 47.137. (449) 47.139 (450) 12.644. (451) 23.493. (452) 23.239. (453) 16.893. (454) 42.742, 42.751 (ÖVAG). (455) See footnote 165. (456) See footnote 282. (457) See footnotes 173, 180 and 185. (458) See footnote 254. (459) See footnote 314. (460) See footnote 338. (461) See footnotes 319 and 323. (462) See footnote 362. (463) See footnote 315. (464) See recital 255. (465) See footnote 530. (466) See Commission Decision 96/438/EC of 5 June 1996 Fenex, paragraph 51, OJ L 181, 20.7.1996, p. 28. (467) See paragraphs 380 et seq. (468) Case C-219/95 P. Ferriere Nord v Commission [1997] ECR I-4411, paragraph 20; Joined Cases C-215/96 and C-216/96 Carlo Bagnasco and Others [1999] ECR I-135, paragraph 47. (469) Case 22/78 Hugin v Commission [1979] ECR 1869, paragraph 22; Joined Cases C-209 to 215/78 and 128/78 Van Landewyck v Commission [1980] ECR 3125, paragraph 172; Carlo Bagnasco and Others, ibid., paragraph 48. (470) Case T-143/89 Ferriere Nord v C ommission [1995] ECR II-917, paragraph 33; Case C-219/95 P Ferriere Nord v Commission, cited above, paragraphs 18 et seq. (471) Case C-250/92 Gøttrup Klim [1994] ECR I-5641, paragraph 54; Carlo Bagnasco and Others, cited above, paragraph 47. (472) Case T-77/94 VGB and Others v Commission [1997] ECR II-759, paragraph 126 among others. (473) Case 22/78 Hugin v Commission, cited above, paragraph 25. (474) Case C-309/99 Wouters and Others, judgment delivered on 19.2.2002, [2002] ECR I-1577, paragraph 95 with references to case-law. See also Case C-35/96 Commission v Italy [1998] ECR I-3851, paragraph 49 (That effect is all the more appreciable in this case because the various types of import or export operations within the Community, as well as transactions between Community traders, require customs formalities to be carried out; emphasis added). (475) See, for example, Joined Cases T-213/95 and T-18/96 SCK and FNK v Commission [1997] ECR II-1739, paragraph 181, where a market share of around 40 % was deemed sufficient for there to be an appreciable effect. (476) e.g. 41.887 (Erste); joint submission at hearing of 18 January 2000 (43.443). (477) Decision of 8 September 1999 (Cases IV/34.010, 33.793, 34.234 and 34.888, Nederlandse Vereniging van Banken and others), OJ L 271, 21.10.1999, p. 28. (478) VGB, cited above, paragraph 126. (479) Case T-17/99, KE KELIT Kunststoffwerk GmbH v Commission, judgment of the Court of First Instance delivered on 20.3.2002, not yet reported, paragraph 58 among others. (480) Case 172/80 Züchner [1981] ECR 2021, paragraph 18. (481) See, for example, 8166 et seq., according to which foreign transactions involving international investment funds are increasing disproportionately. Austrian residents transfer small amounts direct to foreign funds. The latter also receive small amounts by direct debit. See also 4660 and 4663 on the results of a cost comparison with the Federal Republic of Germany, in which distant giro transfers come out better than the Austrian giro system. No information that refers to the more favourable terms available in using such distant giro transfers is therefore to be passed on to customers. (482) In 1998, foreign nationals purchased ATS 205 billion worth of Austrian securities, and Austrian nationals purchased ATS 147 billion worth of foreign securities; Die Presse, 21 April 1999. (483) In 1998, exports accounted for 29,3 % of GDP; 64 % of all exports went to other EU countries; see footnote 482. (484) The Austrian capital market, on the other hand, traditionally plays no more than a subordinate role as far as the raising of capital is concerned. (485) See footnote 482; Der Standard, 27 April 1999, p. 21. (486) See footnote 308; 37.685. (487) See recital 8 and, more exhaustively, sections 7 to 12. (488) It is clear from their own documents that the banks wished to replace unrestricted, in their view "destructive", competition by restricted, in their words "controlled", "reasonable", "disciplined", "eased", "limited", "moderate" or "orderly", competition. For evidence, see the documents referred to in section 5.3. (489) See the following quotations from the documents obtained: all the major banks were sticking "to the agreed interest rates" or were "essentially sticking to the agreements reached", "recommended rates were [...] being followed", the banks were "essentially satisfied" with the implementation of their decisions, there was "not a single instance" of the agreed "minimum rates being undercut", the "cuts agreed had in the meantime been implemented" and "the interest rates agreed had been largely observed", which meant that the market now presented a "very uniform rates picture". (490) For evidence, see recital 274. (491) See footnote 470. (492) RLB did not (prior to the merger) itself take part in the committees mentioned. (493) See Joined Cases T-45/98 and T-47/98, Krupp Thyssen Stainless GmbH and Others v Commission, judgment delivered on 13.12.2001, [2001] ECR II-3757, paragraph 298 among others, and Case T-17/99, KE KELIT Kunststoffwerk GmbH v Commission, judgment delivered on 20.3.2002, [2002] ECR II-1647, paragraph 101 among others. (494) Case T-6/89 Enichem Anic SpA v Commission [1991] ECR II-1623. (495) Case C-279/98 P Cascades SA v Commission [2000] ECR I-9693, paragraph 79. (496) Joined Cases T-45/98 and T-47/98, Krupp Thyssen Stainless GmbH and Others v Commission, judgment delivered on 13.12.2001, [2001] ECR II-3757, paragraph 57 with other references. (497) Case T-65/89 BPB Industries Plc and British Gypsum Ltd v Commission [1993] ECR II-389, paragraph 154; Joined Cases 6 and 7/73 Instituto Chemioterapico Italiano SpA and Commercial Solvents v Commission [1974] ECR 223, paragraph 41; Case C-286/98 P Stora v Commission [2000] ECR-9925, paragraph 26; Case C-297/98 P SCA Holding v Commission [2000] ECR I-10101, paragraph 11. (498) See, for example, the documents cited in recital 431. (499) In view of this fact, it does not matter whether BA itself or its share management company (Anteilsverwaltungsgesellschaft), Anteilsverwaltung-Zentralsparkasse Wien (AVZ), should have been regarded as the parent company. At the relevant time, AVZ held (a), including the undertakings controlled by it, 49,8 % of BA's voting capital and (b) 56,1 % of the voting capital of GiroCredit. (500) See, for example, the documents cited in recital 431. (501) See management board minutes, file p. 3054 et seq. (502) OJ C 207, 18.7.1996, p. 4. (503) Joint presentation on the 1996 Leniency Notice at the hearing of 18 January 2000. (504) Judgment of the Court of First Instance in Case T-112/98 Mannesmannröhren-Werke v Commission [2001] ECR II-729, paragraph 65, with further references. (505) Mannesmannröhren-Werke, cited above, paragraph 70. (506) 42.470 (BAWAG). (507) Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij NV [1999] ECR II-931, paragraphs 451 et seq. (508) Case T-62/98 Volkswagen v Commission [2000] ECR II-2707, paragraph 195. (509) On the law and administrative practice, which are neither unclear nor confusing, see section 14.1. (510) 43.460 (written record of the hearing of 18.1.2000). (511) Case T-143/89 Ferriere Nord v Commission, cited above, paragraph 41; Case T-176/95 Accinauto v Commission [1999] II-1635, paragraph 119; Joined Cases T-202/98, T-204/98 and T-207/98 Tate & Lyle and Others v Commission [2001] ECR II-2035, paragraph 127. (512) See footnote 510. (513) Order of the Court of Justice in Case C-137/95 P SPO and Others v Commission [1996] I-1611, paragraph 54; Case C-219/95 P Ferriere Nord v Commission, cited above, paragraph 33. (514) It is irrelevant in this respect whether the practices at issue were also aimed at market sharing or quantity restriction. (515) Opinion of Advocate General Mischo in Case C-283/98 P Mo och Domsjö v Commission [2000] ECR I-9855, paragraph 101, and the argument in Joined Cases T-45/98 and T-47/98 Krupp Thyssen Stainless and Others v Commission, judgment delivered 13.12.2001, [2000] ECR II-3757, paragraph 199. (516) See recital 430. (517) See recitals 380 et seq. (518) Case C-279/98 P Cascades v Commission [2000] ECR I-9693, paragraph 62. (519) The banks take the view that the infringement is only a "minor infringement", or at most a "serious infringement", within the meaning of the Commission guidelines on the method of setting fines imposed pursuant to Article 15(2) of Regulation No 17 (the guidelines), OJ C 9, 1998, p. 3; see 43.459 (written record of the hearing of 18.1.2000). (520) See recital 374. (521) See paragraphs (58) et seq. (522) The market shares that the Commission has referred to here are shares of the market in private and corporate customer business (both lending and deposits), calculated on the basis of figures from the public versions of Commission decisions, from company reports, from publications and from other public sources. Private and corporate business are the banks' main product markets. Market shares calculated in this way consequently give a representative picture of the overall market position of the banks and banking groupings concerned, and provide an appropriate basis on which to divide them into categories. (523) See Sections 14.1 and 16.2.1. (524) 42.290 (RBW). (525) Case T-9/99 HFB v Commission, judgment delivered 20.3.2002, [2002] ECR II-1487, paragraph 596. (526) Case T-31/99 ABB Asea Brown Boveri v Commission, judgment delivered 20.3.2002, [2002] ECR II-1881, paragraph 213. (527) 42.405, 42.407, 42.411, 42.419, 42.426 and 42.437 (BAWAG). (528) 42.294 (RLB). (529) See recitals 58 et seq. (530) The Vienna and Federal Lending and Deposit Rates Committees (including the Consumer Lending Rates and Liberal Professions Committees), and the Minilombard and Controller Committees. (531) Though RZB and ÖVAG never convened Vienna Lending Rates or Deposit Rates Committees, and BAWAG never convened Federal Lending Rates or Deposit Rates Committees. (532) Case T-308/94 Cascades v Commission [1998] ECR II-925, paragraphs 230 et seq. (533) Sections B and C of the Leniency Notice are not relevant here, section B because the Commission had already carried out inspections, and section C because those inspections had provided sufficient evidence. (534) Commission Decision of 18 July 2001, Graphite electrodes, OJ L 100, 16.4.2002, p. 1, recital 230. (535) Joined Cases T-305/94 etc. Limburgse Vinyl Maatschappij NV [1999] ECR II-931, paragraphs 451 et seq. (536) See, for example, Joined Cases T-45/98 and T-47/98 Krupp Thyssen Stainless and Others v Commission, judgment delivered 13.12.2001, [2001] ECR II-3757, paragraph 270; Case T-16/99 Lögstör Rör (Deutschland) v Commission, judgment delivered 20.3.2002, [2002] ECR II-1633, paragraph 351. (537) Case T-13/89 ICI v Commission [1992] ECR II-1021, paragraph 393. (538) See Commission Decision of 21 October 1998, Pre-insulated pipe cartel, OJ L 24, 30.1.1999, p. 1, paragraph 177. (539) 45.949. (540) The fact that the present Decision does not maintain the objections put forward in the supplementary statement of objections changes nothing in this respect. (541) That account alone makes up one third of the joint exposition of the facts. (542) Case T-347/94 Mayr-Melnhof v Commission [1998] ECR II-1751, paragraph 331.