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Welding technology cartel: Cartel Court fines Zultner EUR 505,000 at AFCA’s request

Following a request submitted by the Austrian Federal Competition Authority (AFCA), the Cartel Court issued a decision on 25 January 2024 to impose a fine of EUR 505,000 on Zultner Metall GmbH and Zultner Immobilien und Beteiligungs GmbH (hereinafter referred to jointly as “Zultner”) for illegal agreements on resale prices, market divisions and prohibitions of competition, as well as anti-competitive concerted practices. The continuous infringement covered the period from 26 January 2007 to 30 November 2021.

On 27 October 2023, the AFCA filed an application for a fine with the Cartel Court. The Cartel Court subsequently fined the company for cartel law infringements, taking the form of price fixing, market divisions and prohibitions of competition, agreed with Fronius International GmbH (“Fronius”) by means of a distribution agreement. In addition, further illegal concerted practices occurred at the distribution level between Haberkorn, Fronius and Zultner (Fronius and Zultner made bogus offers). The three companies repeatedly exchanged detailed information on the terms of their offers including prices during the order initiation process and made bogus offers, having done so since at least 2011. The AFCA filed the applications to have the named companies fined in October 2023 (see press release of 30 October 2023).

Zultner voluntarily acknowledged the infringement and did not contest the facts of the case. The decision is final.

The Cartel Court had already decided on 26 January 2024 to impose a fine of EUR 870,000 on Haberkorn (see press release of 13 March 2024).

Background

The AFCA received information – via its anonymous whistleblowing system – regarding the distribution agreements that the company Haberkorn had concluded with its distribution partners Fronius and Zultner, and initiated investigations. The companies set rules for price coordination, market divisions and illegal prohibitions of competition spanning many years. Fronius applied to the AFCA for leniency in July 2021 and has since cooperated continuously and fully (see press release of 4 July 2023).

The company

Zultner sells high-grade metals and welding products, and has been a welding technology and welding accessory distributor for many years. The company is headquartered in Graz, in the province of Styria, and has several branches throughout Austria.