The Swiss arms company Ruag cannot escape the negative headlines: after the inconsistencies surrounding the sale of Leopard 1 tanks to Germany and the abrupt resignation of boss Brigitte Beck, this now concerns illegal market agreements. The European Commission has punished Ruag together with the German arms manufacturer Diehl from Nuremberg for dividing the market for military hand grenades between them for fourteen years.
Between 2007 and 2021, the two companies agreed on who could sell their products in which territory. This was only possible with the consent of the other competitor, which is considered the formation of a market cartel. “Today we are fining Diehl because the company formed a cartel with competitor Ruag involving the sale of hand grenades,” said Didier Reynders, EU Commissioner for Competition Policy.
Fines reduced to 0: Ruag benefits from the leniency program
Ruag only managed to avoid a fine of 2.5 million euros because he alerted the EU competition authorities and exposed the cartel. Ruag therefore benefits from the so-called ‘leniency program’. Diehl also cooperated with EU authorities and admitted the charges, but still has to pay a fine of 1.2 million euros. The European Commission imposed the fine after a settlement process, it announced on Thursday. Apparently, searches were also conducted in 2021.
According to EU Commissioner Reynders, this is the first antitrust decision in the defense sector that the EU has implemented. “At a time when geopolitical conditions are changing, this proves that we will not tolerate cartels in any sector of the economy, not even in strategic sectors,” the competition watchdog said. In recent months, the Diehl company has also become known as a supplier of the Iris-T air defense system, which Germany supplied to Ukraine. There is also an important production site in Überlingen on Lake Constance, not far from the Swiss border.
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
