Milan, Italy – The EU Court of Justice has rejected Pirelli’s appeal in an electrical-cables cartel ruling, which involved its former subsidiary Prysmian Srl.
The EU Court of Justice confirmed, on 28 Oct, prior decisions of the EU Tribunal and European Commission (EC) regarding the cartel operated by major high-voltage cable producers for over a decade.
The case dates back to a 2014 EC decision which fined 11 producers of underground and submarine power cables, including Prysmian (previously Pirelli), a total of €301.6 million for operating a cartel for ten years since 1999.
In a statement 28 Oct, Pirelli stressed that it was associated with the case “only because of the principle of ‘parental liability’" and denied taking part in the activities of the cartel.
Prysmian was created by American investment bank Goldman Sachs in June 2005, after it acquired Pirelli's two cables and systems divisions.
In its 2014 ruling, the EC sanctioned Prysmian – jointly and severally with Pirelli – with a fine of €67,3 million.
Pirelli said it had already delivered a bank guarantee in the amount of €33.6 to the EU Commission.
The fine, it said, would bear no financial impact on the company, as it had already made provisions for the potential liabilities.