Brussels (dpa) - The European Commission slapped more than 1
billion euros in instant fines on two giant gas utility companies
Tuesday, saying they had been fixing the market.
E.ON of Germany and GDF Suez SA of France must pay 553 million
euros (770 million dollars) each. The EU executive body in Brussels
said it was the first fine it had ever imposed in the energy sector.
Both companies promptly denied the charge and said they would
appeal.
The two companies built a pipeline, codenamed Megal, to carry
Siberian natural gas right across Germany in 1975. Until 2005 they
had a deal that neither would use the pipeline to sell into the
other's market.
This had suppressed competition. It also effectively prevented
cheaper gas suppliers renting the pipeline and entering the business,
the Commission charged.
The fines are among the biggest in history, but are still tiny
compared to the annual turnover last year of the two companies: 87
billion euros worldwide at E.ON and 68 billion euros at GDF Suez.
The German company involved, Ruhrgas AG, is now part of the huge
E.ON group, while Gaz de France later merged into GDF Suez.
'This decision sends a strong signal to energy incumbents that the
commission will not tolerate any form of anti-competitive behaviour,'
said competition commissioner Neelie Kroes. 'Market sharing is one of
the worst types of antitrust infringement.'
But GDF Suez said it was in 'complete disagreement with the
commission's conclusion,' adding, 'GDF Suez reiterates that it has
always sought to develop and strengthen its presence in Germany.'
It said it would go to court to appeal the fine. E.ON's Ruhrgas
division also announced an appeal.
Ruhrgas chief executive Bernhard Reutersberg said, 'The commission
has made out market-sharing arrangements between companies that never
happened.' He said agreements with Gaz de France had been solely to
secure their joint investment.
The commission started an investigation after surprise inspections
in 2006 at E.ON and Gaz de France offices in Germany and France.
The Megal pipeline is jointly owned and operated by the two,
transporting gas from Russia from lines in the Czech Republic and
Austria to homes, offices and factories in southern Germany and
France.
The commission said Germany and France had gas monopolies when it
was built in 1975 but under market liberalization in 2000, monopolies
became illegal. However the two companies met regularly and stuck to
their old accord.
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