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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, New Zealand, Canada and the United States have all ended without any
sanctions for Prysmian. The other investigations are still in progress, except for the one by the European
Commission, which has ended with the adoption of the decision described below.
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,
with the hearing to discuss the case held recently.
In Brazil, the local antitrust authority has started an investigation into several cable manufacturers, including
Prysmian, that operate in the high voltage underground and submarine cables market. Prysmian has
presented its preliminary defence, which has been rejected by the local competition authorities in a
statement issued in February 2015. The preliminary stage of the proceedings will now ensue, at the end of
which the authorities will publish their concluding observations, to which the parties may respond with all
their arguments in defence before a final decision is taken.
On 2 April 2014, the European Commission adopted a decision under which it found that, between 18
February 1999 and 28 January 2009, the world's largest cable producers, including Prysmian Cavi e Sistemi
S.r.l., adopted anti-competitive practices in the European market for high voltage submarine and
underground power cables. The European Commission held Prysmian Cavi e Sistemi S.r.l. jointly liable with
Pirelli & C. S.p.A. for the alleged infringement in the period 18 February 1999 - 28 July 2005, sentencing
them to pay a fine of Euro 67.3 million, and it held Prysmian Cavi e Sistemi S.r.l. jointly liable with Prysmian
S.p.A. and The Goldman Sachs Group Inc. for the alleged infringement in the period 29 July 2005 - 28
January 2009, sentencing them to pay a fine of Euro 37.3 million. Prysmian has filed an appeal against this
decision with the General Court of the European Union along with an application to intervene in the appeals
respectively lodged by Pirelli & C. S.p.A. and The Goldman Sachs Group Inc. against the same decision.
Both Pirelli & C. S.p.A. and The Goldman Sachs Group Inc. have in turn submitted applications to intervene
in the appeal brought by Prysmian against the European Commission's decision. The applications to
intervene presented by Prysmian, Pirelli & C. S.p.A. and The Goldman Sachs Group Inc. have all been
accepted by the General Court of the European Union. Prysmian has not incurred any financial outlay as a
result of this decision having elected, pending the outcome of the appeals, to provide bank guarantees as
security against payment of 50% of the fine imposed by the European Commission (amounting to
approximately Euro 52 million) for the alleged infringement in both periods. As far as Prysmian is aware,
Pirelli & C. S.p.A. has also provided the European Commission with a bank guarantee for 50% of the value
of the fine imposed for the alleged infringement in the period 18 February 1999 - 28 July 2005. Pirelli & C.
S.p.A. has also brought a civil action against Prysmian Cavi e Sistemi S.r.l. in the Milan Courts, in which it
demands to be held harmless for all claims made by the European Commission in implementation of its
decision and for any expenses related to such implementation. Prysmian Cavi e Sistemi S.r.l. started legal
proceedings in February 2015, requesting that the claims brought by Pirelli & C. S.p.A. be rejected in full and
that it should be Pirelli & C. S.p.A. which holds harmless Prysmian Cavi e Sistemi S.r.l., with reference to the