Sumitomo Electric Industries, Ltd. (hereafter “Sumitomo Electric”) and its subsidiary, J-Power Systems Corporation (hereafter “JPS”) announce that the European Commission (hereafter “Commission”), following its investigation into high voltage power cable sector in the European Economic Area which Sumitomo Electric and JPS has been subject of as already disclosed in the business risk section of financial statements et al., has issued a decision on April 2, 2014 finding infringements of EU competition law.
- 1. Conduct Which Constituted the Infringement
- Anti-competitive practice concerning the supply of high voltage (underground and submarine) power cable
- 2. Duration of the Infringement
- ･Sumitomo Electric: February 1999 to September 2001
- ･JPS: October 2001 to April 2008
- 3. Amount of the Fines
- ･Sumitomo Electric: EUR 2,630,000 (approximately 380 million yen)
･JPS: EUR 20,741,000 (approximately 2.97 billion yen)
(Sumitomo Electric and Hitachi Metals, Ltd. are held jointly and severally liable for the fine imposed on JPS.) - 4. Description of the Events and Actions Taken by the Sumitomo Electric Group
- Sumitomo Electric and JPS applied for immunity/leniency promptly after the Commission started its investigation in January 2009 and provided full cooperation throughout the investigation. As a result, Sumitomo Electric and JPS received partial immunity for the period between February 1999 and March 2001 and 45% reduction of the fine for the period thereafter.
As stated in the press release dated June 18, 2010, Sumitomo Electric has already taken measures to enhance competition law compliance system throughout its group companies by implementing Competition Law Compliance Regulations and establishing organizations which are dedicated to competition law compliance. Sumitomo Electric continues to regard competition law compliance as one of its top priority management issues and remains committed to advocate fair business conduct.
- 5. Impact on Fiscal Performance
- Sumitomo Electric does not plan to revise its performance forecast as JPS has already recognized a provision in its financial statements of the previous fiscal year.
