Brussels, 05/04/2011 (Agence Europe) - On Monday 4 April, the European Commission fined 17 producers of prestressing steel a total of € 269,870,750 for operating a cartel from1984 until 2002 and sharing among themselves the markets for prestressing steel and curled steel wires which are used with concrete in construction sites.
This is the second time the initial fine of €518 million imposed on the same steel makers on 30 June 2010 has been reduced (see EUROPE 10171 and 10231). This reduction was allowed largely to avoid the bankruptcy of a number of Arcelor/Mittal subsidiaries which would not otherwise have been able to meet the payment of the amount required. “Inability-to-pay claims will be accepted only when it is clear the fine would send a company into bankruptcy, which is rare even in the current difficult times”, said Almunia.
Arcelor/Mittal is, indeed, the main beneficiary of Monday's decision, since it will now have to pay only €45.7 million, rather than the €276 million imposed in June 2010, later reduced to €230 million in October of that same year. The Commission acknowledged that the company was not “legally obliged” to pay for its subsidiaries, especially as it had held shares in these firms during only part of the time the cartel was in existence. (F.G./transl.rt)