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2013 Wire Harnesses Commission Decision. Eric Van Ginderachter Director, Cartels Directorate, European Commission. WH Decision - Overview. € 141 million fine, including 10% settlement reduction 7 th settlement decision Five Separate Infringements:
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2013 Wire HarnessesCommission Decision Eric Van Ginderachter Director, Cartels Directorate, European Commission
WH Decision - Overview • € 141 million fine, including 10% settlement reduction • 7th settlement decision • Five Separate Infringements: • Toyota (Sumitomo, Yazaki, Furukawa), Honda (idem), Nissan (Sumitomo and Yazaki), Renault I (Sumitomo and SYS), Renault II (idem + Leoni) • No single overarching scheme • Different participants (companies and individuals) • Two types of infringements: • Single and continuous infringements – Toyota and Honda • Single bid cartels – Nissan, Renault I and Renault II
WH – value of sales calculation • Principle – Fining Guidelines 2006 • VoS = last full business year preceding the end of the infringement • In practice: Toyota infringement (Sumitomo and Yazaki) • Duration: 03/2000 to 08/2009 • Last BY - 04/2008 to 03/2009 • WH case - Single and continuous infringements • Last full BY – not representative of the harm of the cartels • In practice: average of the 3 last BY • average VoS around >30 %
WH – VoS calculation • Principle – Fining Guidelines 2006 VoS = last full business year preceding the end of the infringement • WH case – Single bid cartels – Lack of registered sales • Lead time • Unsuccessful collusion
WH – VoS calculation • No registered sales (lead time) – Nissan infringement • Participants - Sumitomo and Yazaki • Duration: 10/2006 to 12/2006 - registered sales only post infringement in 2010 → VoS = € 0 • Calculation: estimates of the yearly volume of WH at the time of the quotation X winning bid • In practice: 1000 WH estimate X Yazaki winning bid of €110 = € 110 000
WH – VoS calculation • No registered sales (unsuccessful collusion) – Renault II infringement • Participants - Sumitomo, SYS and Leoni • Only Leoni got part of the business • Calculation: estimates of the yearly volume of WH at the time of the quotation X winning bid of Leoni + equally apportioned between the three participants • In practice:1000 WH estimate X Leoni winning bid of €120 = € 120 000 / 3 = € 40 000 each
WH – VoS calculation • Direct vs. Indirect sales • Direct sales – sale and delivery in EEA Ex: WH sold and delivered to Toyota Belgium • Indirect sales – sale and delivery outside EEA – transformation into another product – sale and delivery in EEA Ex: WH sold and delivered to Toyota Japan – car build in Japan – imported and sold in EEA • Commission's fines calculated only on the basis of direct sales