Siemens 2009 Annual Report Download - page 272

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 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
 Consolidated Statements of Income  Consolidated Statements of Income
and Expense Recognized in Equity
 Consolidated Balance Sheets  Consolidated Statements of Cash Flow
a class action based on the fines imposed by the European
Commission for alleged antitrust violations in the high-voltage
gas-insulated switchgear market. Thirteen companies were
named as defendants in the suit and motion, among them
Siemens AG Germany, Siemens AG Austria and Siemens Israel
Ltd. The class action alleged damages to electricity consumers
in Israel in the amount of approximately €575 related to higher
electricity prices claimed to have been paid because of the al-
leged antitrust violations. At a hearing on December 11, 2008,
the plaintiff requested to withdraw from the action and from
the motion to certify the action as a class action. The court ap-
proved the request and dismissed the action and the motion to
certify.
In September 2009, the Commerce Commission of New Zea-
land has opened an investigation into violations of antitrust
law in the area of flexible current transmission systems.
Siemens is cooperating with the Commission.
In September 2009, the DOJ has opened an investigation into
violations of antitrust law in the area of high voltage direct cur-
rent transmission systems and flexible current transmission
systems. Siemens is cooperating with the DOJ.
Other proceedings
Pursuant to an agreement dated June 6, 2005, the Company
sold its mobile devices business to Qisda Corp. (formerly
named BenQ Corp.), a Taiwanese company. As previously re-
ported, a dispute arose in 2006 between the Company and
Qisda concerning the calculation of the purchase price. From
September 2006 onwards, several subsidiaries in different
countries used by Qisda for purposes of the acquisition of vari-
ous business assets from the Company filed for insolvency
protection and failed to fulfill their obligations under various
contracts transferred to them by the Company under the 2005
agreement. On December 8, 2006, the Company initiated arbi-
tration proceedings against Qisda requesting a declaratory
award that certain allegations made by Qisda in relation to the
purchase price calculation are unjustified. The Company fur-
ther requested an order that Qisda perform its obligations and/
or the obligations of its local subsidiaries assumed in connec-
tion with the acquisition or, in the alternative, that Qisda in-
ment, authorities in Brazil, the Czech Republic, New Zealand
and Slovakia are conducting investigations into comparable
possible antitrust violations.
As previously reported, on October 25, 2007, upon the Com-
pany ’s appeal, a Hungarian competition court reduced admin-
istrative fines imposed on Siemens AG for alleged antitrust vio-
lations in the market of high-voltage gas-insulated switchgear
from €0.320 to €0.120 and from €0.640 to €0.110 regarding VA
Tech. The Company and the Competition Authority both ap-
pealed the decision. In November 2008, the Court of Appeal
confirmed the reduction of the fines. On December 5, 2008,
the Competition Authority filed an extraordinary challenge
with the Supreme Court.
In November 2008, a claim was filed by National Grid Electric-
ity Transmission Plc. (National Grid) with the High Court of
England and Wales in connection with the January 24, 2007
decision of the European Commission regarding alleged anti-
trust violations in the high-voltage gas-insulated switchgear
market. Twenty-one companies have been named as defen-
dants, including Siemens AG and various Siemens affiliates.
National Grid asserts claims in the aggregate amount of ap-
proximately £249 million for damages and compound interest.
Siemens believes National Grid’s claim to be without merit.
The European Commission’s decision has been appealed to the
European Court of First Instance. On June 12, 2009, the High
Court granted a stay, of the proceedings pending before it, un-
til three months after the outcome of the appeal to the Euro-
pean Court of First Instance and any subsequent appeals to the
European Court of Justice. On June 26, 2009 the Siemens de-
fendants filed their answers to the complaint and requested
National Grid’s claim to be rejected. A case management con-
ference is scheduled for December 14, 2009.
As previously reported, the South African Competition Com-
mission investigated alleged antitrust violations in the market
of high-voltage gas-isolated switchgear. In May 2009, the
Company was notified that the Competition Commission will
not pursue the prosecution of this matter.
As previously reported, a suit and motion for approval of a
class action was filed in Israel in December 2007 to commence