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Bathroom Cartel Fined 622m Euros

A number of the UK’s leading bathroom equipment manufacturers have been fined by the European Commission for a shocking price fixing scam ranging across six European countries and over a period of twelve years. There are 17 companies in total including leading companies like Ideal Standard, Grohe, Durvait, Roca, Sanitec, and Villeroy & Boch.  The fines total an astonishing £511 million or in Euros €622m, the largest of which went to Ideal Standard £268 million yet the European Commission have ordered the former owner of American Standard Group cover the fine who sold the kitchen and bathroom firm in 2007.

Deals included fixing price increases, minimum prices and rebates as well as exchanging sensitive business information. Although these giants of the bathroom world operate largely in the UK the fines were actually relating to deals “co-ordinating” sales prices in Germany, France, Belgium, Italy and Austria through 1992 to 2004.

The European Commission described the companies involved being in very serious infringements of the EU competition rules. The scandal arouse when Masco, the parent company of Hansgrohe, Huppe and Bristan, acted as the whistle blower for the price fixing cartel, which in turn meant they saw their fine removed and given full immunity. While Grohe and Ideal Standard had their fines further reduced due to their compliance and cooperation towards the EUs investigation.

The only company that is currently challenging the charges brought upon them is Villeroy & Bosch who are currently in the process of starting legal action for the proceedings to be terminated.

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