2006/894/EC: Commission Decision of 17 December 2002 relating to a proceeding under Article 65 of the ECSC Treaty against Alfa Acciai SpA, Feralpi Siderurgica SpA, Ferriere Nord SpA, IRO Industrie Riunite Odolesi SpA, Leali SpA, Acciaierie e Ferriere Leali Luigi SpA in liquidazione (in liquidation), Lucchini SpA, Siderpotenza SpA, Riva Acciaio SpA, Valsabbia Investimenti SpA, Ferriera Valsabbia SpA and the association of undertakings Federacciai (Federazione delle Imprese Siderurgiche Italiane) (Case C.37.956 — Reinforcing bars) (notified under document number C(2002) 5807)
Date: 2002-12-17
Institutions: European Commission
Subjects: Italy, fine, infringement procedure (EU), iron and steel industry, plate, price agreement, production quota, restriction on competition, restrictive trade practice, sale

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Official Journal of the European Union

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II

(Acts whose publication is not obligatory)

COMMISSION

COMMISSION DECISION

of 17 December 2002

relating to a proceeding under Article 65 of the ECSC Treaty against Alfa Acciai SpA, Feralpi
Siderurgica SpA, Ferriere Nord SpA, IRO Industrie Riunite Odolesi SpA, Leali SpA, Acciaierie e
Ferriere Leali Luigi SpA in liquidazione (in liquidation), Lucchini SpA, Siderpotenza SpA, Riva
Acciaio SpA, Valsabbia Investimenti SpA, Ferriera Valsabbia SpA and the association of undertakings
Federacciai (Federazione delle Imprese Siderurgiche Italiane)

(Case C.37.956 — Reinforcing bars)

(notified under document number C(2002) 5807

(Only the Italian text is authentic)

(2006/894/EC)

On 17 December 2002 the Commission adopted a decision relating to a proceeding under Article 65 of the ECSC Treaty.
In accordance with the provisions of Article 30 of Council Regulation (EC) No 1/2003 of 16 December 2002 on the
implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty, (1) the Commission herewith
publishes the names of the parties concerned and the main content of the decision, including the penalties imposed, having
regard to the legitimate interest of undertakings in the protection of their business interests. A non-confidential version of
the full text of the decision is available in the authentic language and in the Commission's working languages at the
website of the Directorate-General for Competition: http://europa.eu.int/comm/competition/index_en.html.

I.

SUMMARY OF THE INFRINGEMENT

Attribution of liabilities

(1)

(2)

Addressees and nature of the infringement

The Decision is addressed to Alfa Acciai SpA, Feralpi
Siderurgica SpA, Ferriere Nord SpA, IRO Industrie Riunite
Odolesi SpA, Leali SpA, Acciaierie e Ferriere Leali Luigi SpA
in liquidazione (in liquidation), Lucchini SpA, Siderpotenza
SpA, Riva Acciaio SpA, Valsabbia Investimenti SpA, Ferriera
Valsabbia SpA and the
association of undertakings
Federacciai
(Federazione delle Imprese Siderurgiche Ita-
liane).

took part

The addressees
in a single, complex and
continuous infringement of Article 65(1) of the Treaty
establishing the European Coal and Steel Community
(hereinafter ‘the Treaty’) which had as its object or effect the
fixing of prices and which provided the basis
for
agreements limiting or controlling output or sales on the
Italian market for concrete reinforcing bar in bars or coils.

(1) OJ L 1, 4.1.2003, p. 1.

(3)

(4)

(5)

The addressee Alfa Acciai SpA is an undertaking to which
can be attributed not only the behaviour of Alfa Acciai SpA
but also the behaviour of Acciaieria Meghara SpA (as from
1996), Alfa Acciai srl (before 1996) and Acciaierie di Sicilia
SpA.

The addressee Feralpi Siderurgica SpA is an undertaking to
which can be attributed not only the behaviour of the
existing Feralpi Siderurgica SpA but also the behaviour of
Feralpi Siderurgica srl (from 1990) and the former Feralpi
Siderurgica SpA.

The addressees Leali SpA and Acciaierie e Ferriere Leali
Luigi (in liquidation) are undertakings to which can be
attributed not only the behaviour of Leali SpA and
Acciaierie e Ferriere Leali Luigi SpA but also the behaviour
of Acciaierie e Ferriere Leali Luigi SpA (until November
1998), which they replaced. After that date, Leali SpA is
solely liable for the behaviour objected to.

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(6)

(7)

(8)

The addressees Lucchini SpA and Siderpotenza SpA are
undertakings to which can be attributed not only the
behaviour of Lucchini SpA and Siderpotenza SpA but also
the behaviour of the joint undertakings Siderpotenza SpA
(until 1991) and Lucchini Siderurgica SpA (until the end of
1997).

The addressee Riva SpA is an undertaking to which can be
attributed not only the behaviour of Riva SpA but also the
behaviour of Fire Finanziaria SpA, Riva Prodotti Siderurgici
SpA, Acciaierie e Ferriere di Galtarossa SpA and Acciaierie
del Tanaro SpA.

The addressees Valsabbia Investimenti SpA and Ferriera
Valsabbia SpA are undertakings to which can be attributed
not only the behaviour of Valsabbia Investimenti SpA and
Ferriera Valsabbia SpA but also the behaviour of the former
Ferriera Valsabbia SpA (until 2000) and the even earlier
Ferriera Valsabbia SpA (until 1990).

(9) As regards the other addressees of the Decision, they are the
same undertakings and the same association, as well as the
same legal persons with the same business name, that
operated on the market for reinforcing bar since the start of
the infringement (from 1993 as regards Ferriere Nord SpA).

Duration of the infringement

(10) The undertakings participated in the infringement during at

least the following periods:

Alfa Acciai SpA, from 6 December 1989 to 4 July 2000;

Feralpi Siderurgica SpA, from 6 December 1989 to 27 June
2000;

Ferriere Nord SpA, from 1 April 1993 to 4 July 2000;

IRO Industrie Riunite Odolesi SpA, from 6 December 1989
to 27 June 2000;

The market for reinforcing bars

(11) Reinforcing bars are a long hot-rolled steel product in coils
or bars of 5 mm and over, with a smooth, crenellated or
ribbed surface, used to reinforce concrete. The conventional
form in which reinforcing bars are supplied is straight
reinforcing bar that has been hot-rolled in a bar mill. The
bars may be 12 m, 6 m, 14 m or, more rarely, 18 m long.

(12) Reinforcing bar in coils takes the form of superimposed
coil, which the user straightens and cuts to the desired
length. It usually costs slightly more than the straight bar
form but the price nevertheless tends to fall into line with
that of straight bars.

(13) All these types of reinforcing bar are manufactured in
circular cross sections of 5 mm to 40 mm, to be used in
structures with different requirements. Reinforcing bar in
coil does not exceed a diameter of 16 mm. On top of the
base price for reinforcing bars there is a supplement to be
paid depending on the diameter, which is known as a ‘size
extra’.

(14) Reinforcing bar is used principally in the construction

industry to strengthen concrete.

(15) Of the fifteen Member States of the European Union, the
country in which the largest volume of reinforcing bar is
manufactured is Italy. Turnover for reinforcing bar achieved
by the addressees of this Decision, which, towards the end
of the infringement period, accounted for some 80 % of the
Italian market, totalled some EUR 900 million in 2000-01.

Functioning of the cartel

(16) From at least the end of 1989 Federacciai and the other
firms cooperating with it decided on and applied standard
size extras for reinforcing bar in Italy. From April 1992 the
firms, with the support of Federacciai, extended their
decisions and behaviour
the base price for
reinforcing bar in Italy. From that date until September
1995 the agreement extended to the fixing of payment
terms.

to cover

Leali SpA and Acciaierie e Ferriere Leali Luigi SpA (in
liquidation), from 6 December 1989 to 27 June 2000;

(17) From at least the end of 1994 Federacciai structured its
business activities more systematically, as regards both the
prices and quantities of reinforcing bar produced and sold.

Lucchini SpA/Siderpotenza SpA, from 6 December 1989 to
27 June 2000;

Riva SpA, from 6 December 1989 to 27 June 2000;

Ferriera Valsabbia SpA and Valsabbia Investimenti SpA,
from 6 December 1989 to 27 June 2000;

Federacciai
liane), from 6 December 1989 to 24 July 1998.

(Federazione delle Imprese Siderurgiche Ita-

(18) From 1995 the parties to the agreement started colluding
on reducing or controlling output or sales in order to
reduce the quantities of reinforcing bar on the market.
Some of them set up a more detailed and systematic system
of multilateral mutual control of quantities produced and
sold by each firm.

(19) The Commission does not have sufficient evidence to show
that the competition rules were infringed in the period after
It is pointed out that not all the firms
4 July 2000.
necessarily took part in all the behaviour described here

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and that some of them took part for a shorter time.

II.

FINES

Basic amount

(20) The infringement consists

in a single, complex and
continuous restrictive practice which, having as its object
the fixing of prices and the limiting or controlling of
production or sales, constitutes a very serious infringement
of Article 65(1) of the ECSC Treaty. The cartel covered the
Italy. The cartel arrangements were put into
whole of
practice and had effects on the market, although the hoped-
for effects were not always fully achieved. The Commission
considers therefore that the addressees committed a very
serious infringement. The fact that the restrictive practice
was confined solely to the Italian market does not mean
that the gravity of the infringement can be regarded as
serious rather than very serious, since account must be
taken of the volume of Italian production.

(21) However, without prejudice to the very serious nature of
the infringement, The Commission has, in determining the
basic amount of the fine, taken account of the specific
characteristics of the case, involving a national market that
was subject at the time to the rules of the ECSC Treaty and
on which the firms in question accounted for a limited
share of the relevant market during the first period of the
infringement.

(22) Pursuant to Article 65(5) of the ECSC Treaty, an association
of undertakings cannot be made the subject of a fine or
periodic penalty payment. However, there is nothing in the
wording of Article 65(1) to support the view that an
association which has adopted a decision tending to
prevent, restrict or distort normal competition is not itself
covered by the prohibition laid down in that provision.
Accordingly, whilst Federacciai cannot be fined for the
above-mentioned anti-competitive behaviour,
is an
addressee of this Decision.

it

Differential treatment

fines applicable makes

(23) Within the category of very serious infringements, the scale
firms
of
differently in order
the effective
economic capacity of the offenders to impair competition
significantly, as well as to set the fine at a level that ensures
sufficient deterrence.

it possible to treat

to take account of

groups of firms in descending order of presence on the
market. In the first group are Feralpi and Valsabbia, and in
the second Lucchini/Siderpotenza, Alfa, Riva and Leali (with
an average market share of some 70 % of that of the firms
in the first group). In the third group are IRO and Ferriere
Nord (with an average market share of some 35 % of that of
the firms in the first group).

(25) As regards Riva and Lucchini/Siderpotenza,

the basic
amount of the fine calculated in relation to the relative
size of the relevant market must be increased in order to
take account of the size and global resources of the firms.
The turnover in ECSC products achieved by these firms is
very much higher (some EUR 3,5 billion for Riva in 2001
and about EUR 1,2 billion for Lucchini) than that of the
other firms involved. It should also be pointed out how the
documents in the case show that, on many occasions, the
heads of
these firms were directly involved in the
infringements objected to. In order to ensure a level of
sufficient deterrence, the basic amount of the fine should be
increased by 225 % in the case of Lucchini/Siderpotenza
because its turnover in ECSC products is some three times
greater than that of the larger of the other firms and by
375 % in the case of Riva, which has a total turnover in
ECSC products that is about three times higher than that of
Lucchini/Siderpotenza. These multipliers take account of
the significant disparity in size and overall
resources
between the two firms and the other addressees of the
Decision.

Duration

(26) The infringement lasted for more than ten years and six
months as regards all the firms with the exception of
Ferriere Nord SpA, where the infringement lasted for more
than seven years. The basic amount of the fine is thus
increased by 105 % for all the firms, with the exception of
Ferriere Nord, where it is increased by 70 %.

Aggravating circumstances

(27)

In the present case the Commission has identified only one
aggravating circumstance, i.e. the fact that Ferriere Nord has
already been the subject of a Commission decision of
2 August 1989 concerning its involvement in an agreement
to fix prices and limit sales in the welded steel mesh
sector. (2)

(28) The Commission therefore considers it necessary to impose
an increase of 50 % of the basic amount in respect of
Ferriere Nord.

(24) The Commission considers that the market shares acquired
by the addressees of this Decision in the last full calendar
year of the infringement (1999) are not representative of
their actual presence on the relevant market in the reference
period. Between 1990 and 1999 the market shares of the
firms virtually tripled. On the basis of the average market
shares in the period 1990-99, it is possible to identify three

Attenuating circumstances

(29) The Commission has not

identified any attenuating

circumstances.

(2) OJ L 260, 6.9.1989, p. 1.

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Application of the 1996 leniency notice

Decision

(30) None of the firms to which the Decision is addressed
qualifies for the non-imposition of, or a substantial or
significant reduction in, the fine pursuant to points B and C
of the 1996 Leniency Notice (3) as none of the conditions
provided for therein have been met. None of the firms
disclosed the cartel either before or after the Commission
started its investigation or provided any decisive evidence of
the existence of the restrictive practice.

(31) With regard to point D of

the 1996 Notice,

the
Commission acknowledges that Ferriere Nord provided it
with useful
information that allowed it to gain a better
understanding of the details of the restrictive practice. It
considers that this satisfies the first paragraph of point D of
the Notice, which states that a reduction in the amount of a
fine is possible if, before a statement of objections is sent,
an enterprise provides the Commission with information,
documents or other evidence which materially contribute
to establishing the existence of the infringement.

(32) The Commission considers that it would be justified to
grant Ferriere Nord a reduction of 20 % in the amount of
the fine.

1.

The following fines are imposed:

— Feralpi Siderurgica SpA.:
Investimenti
— Valsabbia

SpA
and Ferriera Valsabbia SpA,
jointly and severally liable:
— Lucchini SpA and Siderpo-
jointly and sever-

tenza SpA,
ally liable:
— Alfa Acciai SpA:
— Riva Acciaio SpA:
— Leali SpA and Acciaierie e
Ferriere Leali Luigi SpA in
liquidazione (in liquidation),
jointly and severally liable:

EUR 10,25 million,
EUR 10,25 million,

EUR 16,14 million,

EUR 7,175 million,
EUR 26,9 million,
EUR 6,093 million,

— Leali SpA (4)
— IRO Industrie Riunite Odolesi

EUR 1,082 million,
EUR 3,58 million,

SpA:

— Ferriere Nord SpA:

EUR 3,57 million,

2.

Federacciai and the firms listed must forthwith put an end
to the infringement if they have not already done so. They
must refrain from repeating the acts or behaviour that
constituted the infringement and from adopting measures
having equivalent effect.

(4) A distinction should be made between the behaviour of Acciaierie e
Ferriere Leali Luigi SpA until
it entered into liquidation and the
behaviour of Leali SpA from the date it was set up: the former can be
attributed jointly and severally to Acciaierie e Ferriere Leali Luigi SpA
(in liquidation) and to Leali SpA, the latter solely to Leali SpA. The
amount of the fine is accordingly subdivided into two periods, in
proportion first to the period from the start of the infringement to
25 November 1998 and second from that date to the end of the
infringement. The amount of the fine relating to the first period is
imposed on Leali SpA and Acciaierei e Ferriere Leali Luigi SpA (in
liquidation), jointly and severally, while that relating to the second
period is imposed solely on Leali SpA.

(3) OJ C 45, 19.2.2002, p. 3.