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Swedish court slams down on asphalt cartel

“We are disappointed”, builder NCC says after having been ordered to pay a higher competition-impeding fee than previously set.

The Swedish Marketing Court slams down on the Swedish building companies NCC and Peab after a long-drawn asphalt cartel investigation.

NCC, second biggest builder in Sweden, have been ordered to pay a higher competition-impeding fee than previously set by the City court. The fee is to be raised from 150 million kronor (€14.3 million) to 200 million kronor.

“We are surprised and disappointed by the Market Court raising the levy in the light of that we strongly contributed to enhance the Competition Authority's investigation”, says Ulf Wallin, Senior Legal Advisor in the NCC group. “We believe that the contribution rate is too high and today's ruling means a significant strengthening of previous practice”.

The inquiry in the asphalt cartel was kicked off in 2001, following complaints from the Swedish Competition Authority and former employees at NCC to that there was price co-operation between a group of actors on the asphalt market.

CompanyFee, SEK
NCC AB200 000 000
Peab Asfalt AB33 420 000
Peab Asfalt Syd AB1 500 000
Peab Sverige AB40 000 000
S. Grus & Asfalt AB2 500 000

Peab’s three subsidiaries Peab Asfalt, Peab Asfalt Syd and Peab Sverige will together pay nearly 75 million kronor. S. Grus & Asfalt got their fee lowered to 2.5 million kronor while Svenska Väg, that was convicted by the City court, was cleared by the Marketing court.

According to NCC, the company has been an active participant in uncovering the facts in the cartel investigation. Not surprisingly they are critical to the raised fee.

“This had been a golden opportunity for the Market Court to show that it is worth money to contribute. Our assessment is that the ruling threatens to reduce the company's willingness to facilitate investigations in similar situations”, says Ulf Wallin, Senior Legal Advisor in the NCC group.

Last Updated (Monday, 01 June 2009 12:56)

 
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