285
The net decrease of Euro 1,909 thousand in the Provision
for contractual and legal risks includes Euro 474 thousand
in utilisations for legal fees relating to the Antitrust
investigations in progress in various jurisdictions; as a
result, the provision for Antitrust investigations recognised
by Prysmian S.p.A. amounts to approximately Euro 30,814
thousand at 31 December 2013.
More specifically, the European Commission, the US
Department of Justice and the Japanese Antitrust Authority
started investigations in late January 2009 into several
European and Asian electrical cable manufacturers to verify
the existence of alleged anti-competitive practices in the
high voltage underground and submarine cables markets.
Subsequently, the Australian Competition and Consumers
Commission (“ACCC”) and the New Zealand Commerce
Commission also started similar investigations. During
2011, the Canadian Antitrust Authority also started an
investigation into a high voltage submarine project dating
back to 2006. The investigations in Japan and New Zealand
have ended without any sanctions for Prysmian. The other
investigations are still in progress.
In Australia, the ACCC has filed a case before the Federal
Court arguing that Prysmian Cavi e Sistemi S.r.l. and two
other companies violated Antitrust rules in connection with
a high voltage underground cable project awarded in 2003.
Prysmian Cavi e Sistemi S.r.l. has filed its objections and
presented its preliminary defence.
In Brazil, the local antitrust authority has started an
investigation into several cable manufacturers, including
Prysmian in the high voltage underground and submarine
cables markets. Prysmian has taken steps to present its
preliminary defence. During the month of December 2013,
the company ABB and one of its senior managers signed
an agreement with the Brazilian Antitrust Authority, under
which they admitted the conduct alleged by the authority
and pledged to cooperate with it and to each pay an agreed
fine.
At the start of July 2011, Prysmian received a statement
of objection from the European Commission in relation
to the investigation started in January 2009 into the high
voltage underground and submarine energy cables market.
This document contained the Commission’s preliminary
position on alleged anti-competitive practices and did
not prejudge its final decision. Prysmian subsequently
submitted its defence which it was also able to present at
the hearing before the European Commission held during
the month of June 2012. In July 2013, Prysmian submitted
information, at the Commission’s request, about its 2004
sales in the high voltage underground and submarine cables
businesses. In addition, a state of play meeting was held
between the Company and the European Commission at
the start of October 2013. Subsequently, in February 2014,
the Commission requested the figures for the Group’s
consolidated sales at 31 December 2013 which, together with
the length of time elapsing since the investigation’s start,
could indicate that a decision may be issued soon.
As at 31 December 2013, the amount of the provision for the
risks relating to the investigations underway in the various
jurisdictions, except for Brazil, is approximately Euro 30,814
thousand.
Despite the uncertainty of the outcome of the investigations
underway in the various jurisdictions, the amount of this
provision is considered to represent the best estimate of the
liability based on the information now available. It should be
noted, however, that the Commission’s decision is not final
but must be submitted to two more levels of review.
