starting blocks Home | News & events | Legal updates | Commission imposes €38 million fine on E.ON for breach of a seal during an inspection

Commission imposes €38 million fine on E.ON for breach of a seal during an inspection

10 April 2008

In May 2006, as part of an investigation into suspected anti-competitive practices in the German electricity market, the Commission carried out a surprise inspection – or “dawn raid” – of E.ON premises.

At the end of the first day, unread documents were left in a sealed room but when the inspection team returned the following day the seal had been broken. As the documents had not yet been listed, the Commission could not ascertain whether E.ON had removed anything from the sealed room.

E.ON denied any wrongdoing, but a very thorough investigation by the Commission confirmed that the seal had been broken and E.ON was fined €38 million.

Competition Commissioner Neelie Kroes commented “The Commission cannot and will not tolerate attempts by companies to undermine the Commission's fight against cartels and other anti-competitive practices by threatening the integrity and effectiveness of our investigations.

Companies know very well that high fines are at stake in competition cases, and some may consider illegal measures to obstruct an inquiry and so avoid a fine. This decision sends a clear message to all companies that it does not pay off to obstruct the Commission's investigations."

Are any of the issues in this article giving you a headache? If so, we want to know

Name *

Comments*

I agree to Shoosmiths holding information about me in accordance with its privacy policy.*

To subscribe to our news updates click here.

 

Email this page

Get in touch

Peter Andrews

Partner
T: 08700 86 5035
I: +44 (0)115 906 5035
E: peter.andrews@shoosmiths.co.uk