The Bundeskartellamt has imposed fines totalling 165 million euros against six companies in the clay roof tile sector and eight persons responsible on account of their participation in anti-competitive agreements concerning clay roof tiles. The companies involved are Creaton AG and Pfleiderer Dachziegel GmbH, which belong to the Belgian Etex Group, Koramic Dachprodukte GmbH & Co. KG, a subsidiary of the Austrian Wienerberger Group, Monier GmbH, which formerly belonged to the Lafarge Group, Erlus AG and Gebr. Laumans GmbH & Co.KG. The fines against the group companies are in the medium to high double-digit million range.

At a trade association meeting in July 2006, almost the entire sector had agreed to raise prices by 4 – 6% by levying a so-called “energy cost surcharge” for that year. Already in the spring of that year, Etex, Koramic, Lafarge and Erlus had agreed on a massive price increase in a specific clay roof tile segment. The July agreement concerned the entire product range of the clay roof tile industry. With a market volume of over 1 billion euros in 2006 the entire roofing tile market represents an important part of the building sector.

In these proceedings the guidelines on the setting of fines issued by the Bundeskartellamt in 2005 were applied, in which the level of fines was increased. Accordingly, the fines against four companies belonging to groups with an annual turnover of over 2 billion euros, were significantly raised to increase the deterrent effect. The remaining clay roof tile manufacturers, however, are SMEs and mainly single product manufacturers. Moreover, the role of the cartel initiator within a group was taken into closer consideration.

After a search of the companies in December 2006, during which substantial evidence was seized, two of the companies filed leniency applications. In accordance with the Bundeskartellamt’s Leniency Programme, the cooperation offered by both companies was taken into account as a mitigating factor in the calculation of the fines. The accusations were also admitted by other companies, which have announced their acceptance of the fines. The proceedings against two further SMEs, which have also admitted to the accusations, are nearing conclusion.

Another fine proceeding in this sector is also about to be concluded: This is targeted against the parent company of a group, whose management was informed of the agreement to levy an “energy cost surcharge”.

The President of the Bundeskartellamt, Dr Heitzer, stated: “These, in some cases, high fines, are meant to send out a clear signal. Unfortunately the building materials trade, which over the last decades has often earned itself a bad name because of its illegal cartel agreements, has obviously still not learnt its lesson. The price agreements which were uncovered also directly harmed the own home builder, which at the turn of 2006 also had to contend with the discontinuation of the home buyer allowance as well as an increase in value-added tax in 2007”.

The decisions are not yet final. The companies and individuals affected can appeal against the orders imposing the fines at the Düsseldorf Higher Regional Court.