Bundeskartellamt imposes multi-million fines against manufacturers of mortar

03.07.2009

The Bundeskartellamt has imposed fines totalling € 39.69 million against several companies in the mortar sector. Nine companies and as many senior executives are accused of having participated in anti-competitive agreements on set-up fees for dry mortar silos. The companies concerned are maxit Deutschland GmbH, Knauf Gips KG, Knauf Marmorit GmbH, Schwenk Putztechnik GmbH & Co., BaumitBayosan GmbH & Co KG, Hasit Trockenmörtel GmbH, Saint Gobain Weber GmbH, quick-mix GmbH & Co. KG and Schäfer Krusemark GmbH & Co. KG.

In May 2006 and January 2007 the Bundeskartellamt conducted searches at the above companies during which it seized substantial evidence. According to the Bundeskartellamt’s findings, in 2004 and 2005, following a number of coordination activities, agreement was reached in almost the entire mortar sector to charge as of 2006 a set-up fee for erecting dry mortar silos in addition to the costs for the mortar. The agreement, which was implemented at the beginning of 2006, concerned the sale of dry mortar silos across Germany.

In the proceedings, the Bundeskartellamt’s new guidelines on the setting of fines of 15 September 2006 were applied (Bundeskartellamt`s Guidelines on the Setting of Fines of 15 September 2006). These had been issued following a statutory increase in the level of fines. Consequently, the calculation of the fines was based on the companies’ turnover achieved with mortar, as well as their revenue from the set-up fee, in order to take sufficient account of the economic significance of the agreements. In the case of two companies belonging to corporate groups with an annual turnover of more than € 1 billion, the fines were significantly raised to enhance the deterrent effect of the Bundeskartellamt's decision.

The investigations against the federal association of the German specialised trade for building materials (Bundesverband Deutscher Baustoff-Fachhandel e.V.) and the trade cooperations hagebau and Eurobaustoff connected with these proceedings will shortly be concluded.

The orders imposing the fines are not yet final. The persons and undertakings concerned can appeal against them.

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