German Cartel Office Imposes Fines on Eight Rail Companies

By Nicky Redl

German anti-trust authorities Tuesday fined a unit of steelmaker ThyssenKrupp AG (TKA.XE) 88 million euros as part of an investigation into a rail cartel that operated over a decade.

Seven other companies were fined a total of EUR9.6 million, with a unit of Austria's Voestalpine AG (VOE.VI) bearing the brunt.

"With the fines imposed today, we penalize price and customer protection agreements that came at the expense of public transport companies, private, regional and industrial railways and construction companies," said Andreas Mundt, president of the German Cartel Office.

The agreements among the companies were intended to divide tenders and projects among the cartel members, he said, adding the members often knew in advance who would win a contract.

"The cartel included the product areas rails, points and sleepers between 2001 and 2011," Mr. Mundt said.

The fines do not involve agreements affecting national rail company Deutsche Bahn AG, which were addressed in a previous investigation.

Besides the EUR88 million fine on ThyssenKrupp GfT Gleistechnik GmbH, the office imposed a EUR6.4 million on Voestalpine BWG GmbH.

Other companies fined smaller amounts include Holz-Fehlings Gleistechnik und Entsorgung GmbH, Fehlings Narosch Gleistechnik und Entsorgung GmbH, Kuenstler Bahntechnik GmbH, Heinrich Krug GmbH & Co. KG, and Betzler Eisenbahntechnik GmbH.

Both ThyssenKrupp and Voestalpine couldn't immediately provide a formal statement but said they are accepting the decision and won't appeal.

Write to Nicky Redl at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires