Cartel Digest

Water Management Products

Water Management Products
  Overall Cartel Period 2006-2006
  Total Fines (DOJ) No fines imposed
  Total Fines (EC) €13.7 million
In 2012, the European Commission (“EC”) fined Flamco and Reflex, two producers of water management products used in heating, cooling and sanitation systems, for breaching European Union (“EU”) antitrust rules against cartels and restrictive business practices.  A third company, Pneumatex, was not fined because it revealed the existence of the cartel to the EC.  The cartel spanned the German market from June 2006 to May 2008, and Reflex and Pneumatex expanded the cartel to 13 other EU Member States for a limited period of three months in autumn 2006.
Enforcement Highlights:
  • For almost two years Flamco, Reflex and Pneumatex operated the cartel in Germany.  For three months, Pneumatex and Reflex coordinated prices in France, Belgium, Spain, Portugal, Luxembourg, Italy, Finland, Sweden, Hungary, the United Kingdom, Greece, The Netherlands and Denmark.
  • Flamco was fined €3,870,000 and Reflex €9,791,000.  The Commission reduced the fines imposed by 10% as the companies concerned acknowledged their participation in the cartel and their liability in this respect.
  • Pneumatex was not fined as it benefited from immunity under the EC’s 2006 Leniency Notice for revealing the existence of the cartel to the EC.
Company Fine Date
Flamco GmbH, Flamco Holding B.V., voestalpine Polynorm B.V. and voestalpine AG (Flamco) € 3.8 million
Reflex Winkelmann GmbH & Co. KG and Winkelmann Group GmbH & Co. KG (Reflex) € 9.7 million
TA Hydronics Switzerland AG (Pneumatex) No fines imposed