The European Commission has fined 14 Community producers of welded
steel mesh a total of 9.5 mecus for organising a cartel in
contravention of Article 85 of the EEC Treaty, which outlaws anti-
competitive agreements between undertakings. Many of the agreements
of the cartel took effect in 1981 and lasted at least until November
1985, when the Commission began its investigations.
The case involves a series of agreements or concerted practices
designed to fix prices or delivery quotas and to share markets in
welded steel mesh, a product widely used in the building industry, in
civil engineering and in many other industries. The companies
concerned were the main producers in the six original member states
and accounted for 47 per cent of production in 1985 in a total output
worth about 810mecu for the same year.
For the most part, particular arrangements concerned just one part of
the common market, such as France, Benelux or Germany, but there was
always an effect on cross-border trade, since this complex of
restrictive arrangements was intended to protect national markets.
Furthermore, the main companies operating in the market, including
importers, were party to the arrangements, which were themselves based
on reciprocal agreements.
In determining the amount of the fines, the Commission has taken into
account the relatively long duration of most of the infringements
(between two and five years), their serious nature and the fact that
they involved practices such as export bans, market partitioning and
price fixing, which have been outlawed by the Commission in many
previous cases. The Commission nevertheless took into account that at
the time when the cartel was operating the industry was going through
a period of crisis linked to the general crisis in the European steel
industry and, in particular, had also been suffering from a structural
decline in demand and the associated problems of excess capacity.
Some of the undertakings which were originally party to the
arrangements subsequently withdrew and thus reduced the effectiveness
of the cartel.
The individual fines imposed by the Commission on the different
undertakings involved in the arrangements are as follows:
BAUSTAHLGEWEBE (Germany) 4 500 000 ECU
TREFILUNION (France) 1 375 000 ECU
TREFILARBED (Luxembourg) 1 143 000 ECU
BOËL/TREBOS (Belgium) 550 000 ECU
THIBODRAAD (Netherlands) 420 000 ECU
VAN MERKSTEIJN (Netherlands) 375 000 ECU
FERRIERE NORD (Italy) 320 000 ECU
STEELINTER (Belgium) 315 000 ECU
SOTRALENTZ (France) 228 000 ECU
SOCIETE DES TREILLIS ET
PANNEAUX SOUDES (France) 150 000 ECU
SOCIETE METALLURGIQUE DE
NORMANDIE (France) 50 000 ECU
ZND BOUWSTAAL (Netherlands) 42 000 ECU
MARTINELLI (Italy) 20 000 ECU
IRLO (Italy) 13 000 ECU