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Antitrust Fine on E.ON Energie for Breach of Seal During Inspection

By Bartolus

In the first case of its kind, the Commission imposed a fine of ?38,000,000 (US$ 56,222,913.74) on E.ON Energie AG, the German energy group, for breaking a seal fixed to a door overnight to prevent the disappearance of documents in the course of an antitrust investigation.

Under Regulation 1/2003, officials of the Commission can carry out inspections at the premises of undertakings. Such an inspection was carried out in May 2006 to investigate anticompetitive practices on the German electricity market. The Commission inspectors entered the premises of E.ON and sealed a room overnight to make sure that no documents would be removed during their absence. The next morning the seal showed signs that it had been interfered with.

E.ON denied breaking the seal and claimed the Commission inspectors had the only key to the room in question. They omitted to tell about the 20 other keys distributed to their employees. E.ON also claimed that the seal had malfunctioned.

The Commission carried out tests of the seal with an independent expert and with its manufacturer who both concluded unequivocally that E.ON had interfered with it.

Consequently, the Commission was empowered under Article 23 §1 e) to impose a fine of up to 1% of company turnover. It decided to impose a fine of ?38,000,000 (US$ 56,222,913.74) in this case taking account of the circumstances surrounding it.

The decision is not available yet but here's the press release.

E.ON continues to deny that it interfered with the seal and tried to impede the investigation.

You can see pictures of the type of seal used by the Commission here.

Full post as published by EU Law Blog on February 03, 2008 (boomark / email).