The European Commission imposed fines over 17 European producers of prestressing steel for operating a cartel that lasted 18 years until 2002 and covered all but three of the then European Union Member States. Further to this decision, and based on their cooperation in the investigation process, the Commission has reduced these fines to the companies ArcelorMittal, Emesa/Galycas/ArcelorMittal (Espaňa), WDI/Pampus and Rautaruukki/Ovako.

The Commission decision concluded that the 17 producers of prestressing steel violated the European Union's ban on cartels and restrictive business practices. This is the fourth cartel decision since the beginning of February bringing the total amount of antitrust fines imposed so far in 2010 to 1.433 million Euro.

Steel Cartel in Europe

During 18 years, the companies fixed individual quotas and prices, allocated clients and exchanged sensitive commercial information. In addition, they monitored price, client and quota arrangements through a system of national co-ordinators and bilateral contacts. This is in breach of Article 101 of the Treaty on the Functioning of the European Union.

The first pan-European cartel meetings were held in Zurich, Switzerland, hence the "Club Zurich" name it was initially referred to. Later it became "Club Europe". But there were also two regional branches, in Italy ("Club Italia") and in Spain/Portugal (“Club España”). The different branches were interconnected by overlapping territory, membership and common goals. The companies involved usually met in the margin of official trade meetings in hotels all over Europe. The Commission has evidence of over 550 cartel meetings.

In setting the fines, the Commission takes into account the sales of the companies involved in the market concerned in the last year prior to the end of the cartel (2001), the very serious nature of the infringement, the geographic scope of the cartel and its long duration. The Commission increased the fines for ArcelorMittal Fontaine and ArcelorMittal Wire France by 60% because they had already been fined twice for cartels in the steel sector. Saarstahl was also previously fined in the steel beams cartel, but received full immunity in the present cartel because it was the first to come forward with information under the Commission's 2002 Leniency Notice.

The Commission recognised the more limited participation of Proderac and Emme Holding by reducing their fine by 5%. Because of the very long duration of the cartel, the fines on several companies would have exceeded the legal maximum of 10% of the 2009 turnover, and was therefore reduced to this level.

In addition, the Commission granted reductions of fines for cooperation under the 2002 Leniency Notice to Italcables/Antonini (50%), Nedri (25%), Emesa and Galycas (5%), ArcelorMittal and its subsidiaries (20%) and WDI/Pampus (5%). The fine for ArcelorMittal España was reduced by 15% for its co-operation outside the Leniency Notice. Redaelli and SLM did not meet the requirements for co-operation and therefore received no reduction of the fine.

Finally, the Commission accepted three inability-to-pay applications and granted reductions of respectively 25%, 50% and 75% of the fine that would otherwise have been imposed. It had received 13 such applications, under the Commission's 2006 Fines Guidelines.