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The Court endorses the fines imposed by the CNMC for electric cable posters

Date: March 2, 2024 Time: 00:28:06

The National Court has confirmed that the sanctions imposed in 2017 by the National Commission for Markets and Competition (CNMC) against various companies for setting up various cartels for the distribution and manufacture of electrical cables, which resulted in fines of more than 44 million euros. For its part, in several judgments dated in the middle of last May, the contentious court ratifies the decision of the CNMC, which in no case incurred a “lack of motivation or disproportion”, as the sanctioned companies alleged.

In 2017, the CNMC dismantled five cartels made up of eleven companies and a business association for the manufacture and distribution of electric cables for fixing prices and dividing up projects. In this way, according to Competition, the companies manufactured and distributed low and medium voltage electrical cables for the construction of hospitals, domestic use, housing construction, works of energy companies, telephone, railway, naval and large international projects.

Fix prices to secure revenue

The sanctioned companies, based in Madrid, Barcelona, ​​Valencia and Portugal, rigged prices and other commercial conditions, and divided up the projects to ensure profits, with the consequent increase in the cost of the works. The sanctions imposed by the competition regulatory body amount to 44.7 million euros for companies and 80,000 euros for the Spanish Association of Manufacturers of Cables and Electrical Conductors and Fiber Optic (Facel).

Among the sanctioned companies there are two whose parent companies are Abengoa and Iberdrola, Negocios Industriales y Comerciales, and Amara, respectively. One of the cartels was created by the 7 main manufacturers of low and medium voltage cables: Cabelte; General Cable Group; Miguelez; nexans; Prysmian Cables España and its parent company Draka Holding; Jointly and severally and its parent Company Industrial Quintas & Quintas, and Top Cable.

Companies that violated the rules

Likewise, the CNMC sanctioned three cartels that carried out incorrect practices; the first of them is Industrial Electrical Products (Peisa) and the manufacturing companies General Cable, Peisa and Top Cable.

Another was that of Nixa and the companies General Cable, Negocios Industriales y Comerciales and its parent Abengoa, Prysmian Cables Spain and its parent Draka Holding, and Top Cable, and the third of the Amara manufacturing companies, whose parent company is Iberdrola; General Cable, Prysmian Cables and its parent Draka Holding.

In addition, a cartel was dismantled between two distributors, Comaple and its parent company Oteinver, and Negocios Industriales y Comerciales and its parent company Abengoa, which distributed 25 cable supply projects to companies such as Repsol, Petronor, Técnicas Reunidas and Initec.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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