2023-09-21 14:14:16
The European Commission has imposed a fine of 1.2 million euros on the German arms manufacturer Diehl for an agreement (“cartel”) with its Swiss competitor RUAG on the sales of grenades, the Competition Commissioner announced on Thursday. Didier Reynders.
This is the first time that the Commission has had to take this type of decision for the defense sector. “In this period when geopolitical realities are evolving, it is also a reminder that we will not tolerate any cartel in any sector, whether strategic or not,” commented the Belgian, who took over the portfolio a fortnight ago of Competition to her colleague Margrethe Vestager, campaigning for the presidency of the European Investment Bank (EIB).
Immunity
Both companies admitted the facts, but RUAG was immunized because it was it which revealed them to the European executive. The two manufacturers shared the national markets of the European Economic Area (EEA) for almost 14 years, between 2007 and 2021.
The Commission specifies that the fine would have been “very low” if it had only taken into account the general methodology of the guidelines. It therefore used its discretionary power to increase the amount in order to make it more dissuasive. Once the facts came to light, both companies cooperated with the Commission, which allowed Diehl to reduce its fine.
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