Siemens 2009 Annual Report Download - page 271

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 Managing Board statements, Independent auditors’ report, Additional information
 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise
stated and per share amounts)
As previously reported, in February 2007, the French Competi-
tion Authority launched an investigation into possible anti-
trust violations involving several companies active in the field
of suburban trains, including Siemens Transportation Systems
S.A.S. in Paris, and the offices were searched. Siemens is coop-
erating with the French Competition Authority.
As previously reported, in February 2007, the European Com-
mission launched an investigation into possible antitrust vio-
lations involving European producers of power transformers,
including Siemens AG and VA Technologie AG (VA Tech), which
Siemens acquired in July 2005. The German Antitrust Author-
ity (Bundeskartellamt) has become involved in the proceeding
and is responsible for investigating those allegations that re-
late to the German market. Power transformers are electrical
equipment used as major components in electric transmission
systems in order to adapt voltages. The Company is cooperat-
ing in the ongoing investigation with the European Commis-
sion and the German Antitrust Authority. In November 2008,
the European Commission finalized its investigation and for-
warded its statement of objections to the involved companies.
On October 7, 2009, the European Commission imposed fines
totaling €67.644 on seven companies with regard to a territo-
rial market sharing agreement related to Japan and Europe.
Siemens was not fined because it had voluntarily disclosed
this aspect of the case to the authorities. The German Antitrust
Authority continues its investigation with regard to the Ger-
man market.
As previously reported, in April 2007, Siemens AG and VA Tech
filed actions before the European Court of First Instance in
Luxemburg against the decisions of the European Commission
dated January 24, 2007, to fine Siemens and VA Tech for al-
leged antitrust violations in the European Market of high-volt-
age gas-insulated switchgear between 1988 and 2004. Gas-in-
sulated switchgear is electrical equipment used as a major
component for turnkey power substations. The fine imposed
on Siemens amounted to €396.6 and was paid by the Company
in 2007. The fine imposed on VA Tech, which Siemens AG ac-
quired in July 2005, amounted to €22.1. VA Tech was declared
jointly liable with Schneider Electric for a separate fine of €4.5.
The European Court of First Instance has not yet issued a deci-
sion. In addition to the proceedings mentioned in this docu-
mation reported in the media alleging bribery by Siemens,
which it argued makes the BIT inapplicable. The application for
a reversal of the decision was registered by the ICSID on June
9, 2008 and forwarded to the three members of the ICSID arbi-
tration tribunal, as it had been constituted originally. The ap-
plication for reversal could have resulted in a stay with respect
to Argentina’s application for annulment pending before the
ad hoc committee. On September 12, 2008, the arbitral tribu-
nal issued its initial procedural order requiring that Argentina
substantiate the application by February 13, 2009. The tribunal
would have decided on admitting a counterclaim once Argen-
tina would have filed the application together with the sub-
stantiation. On August 12, 2009, Argentina and Siemens
reached an agreement to settle the dispute and mutually dis-
continue any and all civil proceedings in the case (the applica-
tion for reversal pending before the ICSID and the related an-
nulment proceeding) without acknowledging any issue of fact
or law. No payment was made by either party.
As previously reported, the Company has been approached by
a competitor to discuss claims it believes it has against the
Company. The alleged claims relate to allegedly improper pay-
ments by the Company in connection with the procurement of
public and private contracts. The Company has not received
sufficient information to evaluate whether any basis exists for
such claims.
Antitrust proceedings
As previously reported, in June 2007, the Turkish Antitrust
Agency confirmed its earlier decision to impose a fine in an
amount equivalent to €6 on Siemens A.Ş. Turkey based on al-
leged antitrust violations in the traffic lights market. Siemens
A.Ş. Turkey has appealed this decision and this appeal is still
pending.
As previously reported, in February 2007, the Norwegian Com-
petition Authority launched an investigation into possible an-
titrust violations involving Norwegian companies active in the
field of fire security, including Siemens Building Technologies
AS. In December 2008, the Norwegian Competition Authority
issued a final decision that Siemens Building Technologies AS
had not violated antitrust regulations.