The Competition Authority imposed fines of 470 million euros on Schneider Electric, Legrand, Rexel and Sonepar, four companies in the electrical material and distribution sector, for a “vertical cartel” between “manufacturers and distributors”, announced on Wednesday, October 30 .
This significant amount, higher than the total sanctions imposed by the Competition Authority in 2022 and 2023, “It is explained, in particular, by the fact that vertical price cartel practices are systematically considered one of the most serious anti-competitive practices”explained the instance.
This agreement, which extends for a period from 2012 to 2018, concerns low-voltage electrical equipment. It would have allowed manufacturers “set the resale prices of your products to end customers and distributors to preserve your margin”according to the Competition Authority.
Of the four companies, the manufacturer Schneider Electric received the largest fine: 207 million euros. the group “firmly discuss the conclusion” from the Competition Authority, according to a press release published Wednesday.
Judicial information opened in 2018
Its distributors Rexel and Sonepar were fined 124 million and 96 million euros respectively. Rexel “reserves the right to appeal”like the manufacturer Legrand, sentenced to 43 million euros, according to the respective press releases.
A judicial investigation was opened in 2018, following a report from the French Anti-Corruption Agency and an article published in Half partwhich led to searches at all four companies.
Schneider Electric, Rexel and Legrand were charged at the end of 2022, in particular with “agreement” and “active corruption” for the first, and with “passive corruption” for the other two, they subsequently announced.
In detail, the agreement would have materialized, according to the Competition Authority, within the framework of the “exemption”, “not illegal”but who “in order to maintain high standard prices in France, limiting, in particular, intra-brand competition, to the detriment of end customers”.
