Fines for clay roof tile cartel: 66 million euros declared final – 70 million euros invalid due to loophole in legal succession provisions

15.06.2015

With its decision of 29 May 2015 the Düsseldorf Higher Regional Court imposed fines amounting to around 42 million euros on two manufacturers of clay roof tiles. This final court decision concludes the Bundeskartellamt's proceedings against the members of the clay roof tile cartel.

At the end of 2008 and in early 2009 the authority had imposed fines on nine manufacturers of clay roof tiles and some of the managers involved (see Bundeskartellamt press release of 22 December 2008). Whereas five of the companies accepted the fines, four companies appealed against the authority's decision. Two of the latter were sold or restructured during the appeal proceedings and so were able to benefit from a loophole in the German law on fines (see Bundeskartellamt press release of 2 June 2015 for more information on the loophole).

Andreas Mundt, President of the Bundeskartellamt: "We are pleased that the violations of competition law have now been legally established. The Higher Regional Court has thus confirmed the fines amounting to 42 million euros. Even though in this case the previous law was still applicable, the decision once again highlights a loophole in the law which makes it possible for cartel participants to avoid being fined by carrying out internal restructuring measures. As a result the fines imposed by the Bundeskartellamt totalling approx. 70 million euros have now been rendered invalid. The legislator has not yet adequately closed this loophole. The fact that seven companies are being brought to justice for their violation with fines running into millions whilst two are able to avoid liability is unjust and unacceptable in terms of competition policy, especially as there is no such loophole in EU competition law."

In 2006 the companies concerned had agreed to add an energy cost surcharge to their prices for clay roof tiles. Final fines totalling approx. 60.5 million euros were imposed on them as a result. Furthermore, five companies agreed in 2006 to raise the price of beaver tiles. Final fines totalling approx. 5.5 million euros were imposed on them for this violation of competition law.

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