Siemens 2012 Annual Report Download - page 284

1 A. To our Shareholders 49 C. Combined Management Report 21 B. Corporate Governance

 
As previously reported, in February , the European Com-
mission launched an investigation into possible antitrust vio-
lations involving European producers of power transformers, in-
cluding Siemens AG and VA Technologie AG, Austria (VA Tech),
which Siemens acquired in July . The German Antitrust
Authority (Bundeskartellamt) has become involved in the pro-
ceeding and is responsible for investigating those allegations
that relate to the German market. Power transformers are elec-
trical equipment used as major components in electric trans-
mission systems in order to adapt voltages. In October ,
the European Commission imposed fines totaling € million
on seven companies with regard to a territorial 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 continued its
investigation with regard to the German market. In September
, the German Antitrust Authority and the Company ended
the legal proceeding by entering into a settlement agreement.
Siemens agreed to pay a fine in the single-digit € million range.
As previously reported, in April , Siemens AG and former
VA Tech companies filed actions before the European Court of
First Instance in Luxemburg against the decisions of the Euro-
pean Commission dated January , , to fine Siemens and
former VA Tech companies for alleged antitrust violations in
the European Market of high-voltage gas-insulated switchgear
between calendar  and . Gas-insulated switchgear is
electrical equipment used as a major component for power
substations. The fine imposed on Siemens AG amounted to
€. million and was paid by the Company in calendar .
The fine imposed on former VA Tech companies, which
Siemens AG acquired in July , amounted to €. million.
In addition, former VA Tech companies were declared jointly li-
able with Schneider Electric for a separate fine of €. million.
In March , the European Court of First Instance dismissed
the case regarding the fine imposed on Siemens AG and re-cal-
culated the fines for the former VA Tech companies. Former VA
Tech companies were declared jointly liable with Schneider
Electric for a fine of €. million. Siemens AG and former VA
Tech companies appealed the decision in May .
In addition to these proceedings, authorities in Brazil, the
Czech Republic and Slovakia are conducting investigations in-
to comparable possible antitrust violations. In October ,
the High Court of New Zealand dismissed corresponding
charges against Siemens.
As previously reported, in September , the Israeli Antitrust
Authority requested Siemens to present its legal position
regarding an alleged anti-competitive arrangement between
April  and April  in the field of gas-insulated switch-
gear. Siemens is cooperating with the authority.
In connection with the January ,  decision of the Euro-
pean Commission regarding alleged antitrust violations in the
high-voltage gas-insulated switchgear market, claims are be-
ing made against Siemens. Among others, a claim was filed by
National Grid Electricity Transmission Plc. (National Grid) with
the High Court of England and Wales in November . Twen-
ty-one companies have been named as defendants, including
Siemens AG and various of its subsidiaries. National Grid origi-
nally asserted claims in the aggregate amount of approximate-
ly £ million for damages and compound interest. In Novem-
ber , National Grid increased the aggregate amount to
£ million due to accrued compound interest. Siemens be-
lieves National Grid’s claim to be without merit. As discussed,
the European Commission’s decision has been appealed to the
European Court of First Instance. In June , the High Court
granted a stay of the proceedings pending before it. In June
, the Siemens defendants filed their answers to the com-
plaint and requested National Grid’s claim to be rejected. A
case management conference was held in November . The
High Court of England and Wales lifted the stay of the proceed-
ings granted in June  and decided on the scope of further
discovery and set a time schedule leading up to a court session
expected to be held in .
As previously reported, in November , the Greek Competi-
tion Authority searched the premises of Siemens S.A. in Athens
in response to allegations of anti-competitive practices in the
field of telecommunication and security. Siemens is cooperat-
ing with the authority.
As previously reported, in December  and in March ,
the Turkish Antitrust Authority searched the premises of sev-
eral diagnostic companies including, among others, Siemens
Healthcare Diagnostik Ticaret Limited Sirketi in Turkey, in re-
sponse to allegations of anti-competitive agreements. Siemens
cooperated with the authority. In May , the Turkish Anti-
trust Authority decided that the law has not been violated, and
discontinued the proceedings.
As previously reported, the Italian Antitrust Authority searched
the premises of several healthcare companies, among others
those of Siemens Healthcare Diagnostics S.r.l. and Siemens
S.p.A. in February . The investigation addresses allega-
tions of anti-competitive agreements in relation to a tender of
the procurement entity for the public healthcare sector in the
region of Campania for the supply of medical equipment in
calendar . In May , the Italian Antitrust Authority sent
a Statement of Objections to the companies under investiga-