NCC wants to be exempted from competition-impeding damages

The trial of the asphalt cartel begins today. NCC, which admitted its cartel involvement at an early stage and actively assisted in the investigation, will be pressing for complete exemption from competition-impeding damages. The company’s position is based on the fact that NCC facilitated and contributed to the Competition Authority’s investigation to a highly significant extent.

In spring 2001, NCC uncovered financial irregularities within the company’s paving operations in the Linköping area. Those responsible were reported to the police and several employees were dismissed. These events also led to illicit cartel collaboration eventually being exposed. Subsequently, the Swedish Competition Authority initiated an investigation and in October 2001 it conducted a dawn raid of all the suspected companies. Based on new information obtained from the Competition Authority, NCC, assisted by external lawyers, implemented a comprehensive internal inquiry during autumn 2001 in order to determine whether cartel collaboration had actually taken place. The inquiry, which was presented in January 2002, showed that NCC employees, contrary to the applicable internal rules, had in certain cases been involved in illicit collaboration with competing companies. NCC’s inquiry was handed over to the Competition Authority and has constituted a vital contribution to the investigation into the asphalt cartel. Pursuant to the Competition Act (Section 28a, second paragraph), companies that “to a highly significant extent facilitate the investigation” of their own or other parties’ involvement may be spared from paying competition-impeding damages. NCC considers that it facilitated the Competition Authority’s investigation to a highly significant extent by. - Being the first company to clearly admit its guilt. - Handing over a comprehensive internal inquiry to the Authority. - Presenting decisive evidence (witness testimony) that enabled the Authority to advance its investigation. - Cooperating with the Authority throughout its investigation. - Ensuring that NCC employees have dared to appear and witness, and thus bring clarity to the investigation. NCC should therefore be exempted from the need to pay competition-impeding damages. Since the cartel collaboration was uncovered, NCC has taken forceful actions to prevent anything similar from happening again. For example, slightly more than 2,000 managers and administrative employees have received training in competition law. Subsequently, this training has been linked to the employment contract, whereby any employee who breaches the prevailing legislation will be dismissed. More information on the trial and NCC’s position is available on www.ncc.info For further information, please contact: Ulf Thorné, Press Relations Manager, NCC Group, +46 8 585 523 46, +46 70 214 77 27