Siemens 2007 Annual Report Download - page 168

168 Management’s discussion and analysis
In February 2007, the French Competition Authority launched an investigation
into possible anti-trust violations involving several companies active in the fi eld
of suburban trains, including Siemens Transportation Systems S.A.S. in Paris,
and the offi ces were searched. The Company is cooperating with the French Com-
petition Authority.
In February 2007, the Norwegian Competition Authority launched an investi-
gation into possible anti-trust violations involving Norwegian companies active in
the fi eld of fi re security, including Siemens Building Technologies AS. The Com-
pany is cooperating in the ongoing investigation with the Norwegian Competition
Authority. The Norwegian Competition Authority has not yet announced a sched-
ule for the completion of the investigation.
In February 2007, the European Commission launched an investigation into
possible anti-trust violations involving European producers of power transform-
ers, including Siemens AG and VA Tech, which Siemens acquired in July 2005. The
German Anti-trust Authority (Bundeskartellamt) has become involved in the pro-
ceeding and is responsible for investigating those allegations which relate to the
German market. Power transformers are electrical equipment used as major com-
ponents in electric transmission systems in order to adapt voltages. The Company
is cooperating in the ongoing investigation with the European Commission and
the German Anti-trust Authority. The European Commission and the German
Anti-trust Authority have not yet announced a schedule for the completion of their
investigation.
In April 2007, Siemens AG and VA Tech fi led actions before the European Court
of First Instance in Luxemburg against the decisions of the European Commission
dated January 24, 2007, to fi ne Siemens and VA Tech for alleged anti-trust viola-
tions in the European Market of high-voltage gas-insulated switchgear between
1988 and 2004. Gas-insulated switchgear is electrical equipment used as a major
component for turnkey power substations. The fi ne imposed on Siemens
amounted to €396.6 million. The fi ne imposed on VA Tech, which Siemens AG
acquired in July 2005, amounted to €22.1 million. VA Tech was declared jointly
liable with Schneider Electric for a separate fi ne of €4.5 million. The European
Court of First Instance has not yet issued a decision. Furthermore, authorities in
Brazil, New Zealand, the Czech Republic, Slovakia and South Africa are conduct-
ing investigations into the same possible anti-trust violations. On October 25,
2007, upon the Company’s appeal, a Hungarian competition court reduced admin-
istrative fi nes imposed on Siemens AG from €320,000 to €120,000 and from
€640,000 to €110,000 regarding VA Tech.
In April 2007, the Polish Competition Authority launched an investigation
against Siemens Sp. z o.o. Poland regarding possible anti-trust violations in the
market for the maintenance of diagnostic medical equipment. The Company is
cooperating in the ongoing investigation with the Polish Competition Authority.
In June 2007, the Turkish Anti-trust Agency confi rmed its earlier decision to
impose a fi ne of approximately €6 million on Siemens AS Turkey based on alleged
anti-trust violations in the traffi c lights market. Siemens Turkey has appealed this
decision and this appeal is still pending. It is possible that as a result of this deci-
sion, Siemens could be debarred from participating in public sector tender offers
in Turkey for a one-to two-year period.