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Danish – German firm, Danfoss created cartels in the U.S. – guilty of price fixing
Wednesday, 05 October 2011
Danfoss has entered into a settlement with the United Sates Justice Department in a case of illegal price fixing in the U.S. market.

The Company has agreed to plead guilty and would be fined to the tone of approximately Dkr16.5 million.

  Danfoss accepts that the group's German subsidiary, Danfoss Flensburg GmbH in the period from October 2004 to September 2007 were included in the price fixing with competitors in the U.S. market for light commercial compressors.

According to the U.S. authorities, Danfoss has agreed to fix prices in the U.S. market in a cartel with Panasonic, Whirlpool, Tecumseh and ACC.
Danfoss is the third company to be charged in the conspiracy. Embraco, a division of Michigan-based Whirlpool, and Panasonic Corp. pleaded guilty last year and together agreed to pay $140 million.

The U.S. illegal price fixing is just part of the fight on the hands of Danfoss. The Group is being continued to be investigated by, among others, the European competition authorities for breaches of European competition law, and there is still a pending civil litigation in the U.S. and Canada against the Danfoss Group.

Danfoss has set aside Dkr720 million in its half-year to an expected fine from the European Commission for price agreements.

Danfoss CEO Niels B. Christiansen admitted in September that the pending cases are embarrassing and a violent shock in the very core of the family owned business.

“It's incredibly annoying and very painful that a company like ours can get into it here. It is against our principles, and if there is anyone who has tried to keep the flag flying in this area, it's us,” he told Danish business daily Børsen.
By Scancomark.se Team

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