Pirelli loses appeal against EU cartel decision

An EU court rejected Pirelli's appeal in a cartel case involving its former subsidiary, Prysmian Srl.

On October 28, 2020, the court upheld the previous decisions of the EU Tribunal and the European Commission (EC) regarding the cartel, in which large manufacturers of high-voltage cable have been involved for more than ten years.

In 2014, the EU authorities fined 11 manufacturers of underground and submarine power cables, including Prysmian, for a total of € 301.6 million for the cartel's activities over ten years - since 1999.

In a statement on October 28, Pirelli stressed that it was linked to the case “only because of the‘ parental responsibility ’principle,” and denied any involvement with the cartel.

Prysmian was formed by US investment bank Goldman Sachs in June 2005 following the acquisition of Pirelli's two cable businesses.

In a 2014 ruling, the court fined Prysmian - jointly and individually with Pirelli - a € 67.3 million fine.

Pirelli said it has already provided the European Commission with a bank guarantee. The fine, the Italian company claims, will have no financial impact on it, as Pirelli has reserves for such liabilities.