The Finnish Competition and Consumer Authority (the “FCCA”) claims that Eltel has violated competition rules in the power transmission line building business in Finland and has today made a proposal of fines to the Market Court. The FCCA accuses Eltel of prohibited co-operation with Empower Oy and proposes fines of EUR 35 million to be imposed on Eltel.
In the FCCA’s view the companies have agreed on the prices, margins and division of projects in the power transmission line building business in Finland.
The FCCA initiated the investigation on the matter in February 2013 by conducting an inspection at Eltel. Eltel has cooperated and assisted the FCCA in its investigation.
The Market Court is not bound by the FCCA’s proposal, it may alter the amount of the fines or dismiss the FCCA’s proposal in its entirety.
Eltel considers that it has not violated competition rules.
– Our own investigations do not show any violations of competition rules. We take the accusation very seriously and have conducted our own in-depth investigations in the matter. We do not agree with the conclusions made by the FCCA and consider that Eltel has acted in compliance with the laws and regulations, says Hannu Tynkkynen, head of Group communications at Eltel.
– We operate in several countries. For us it is of utmost importance that we operate in conformity with national regulations and with high ethical standards. For these reasons we have set detailed rules about corporate governance, competition policy and ethical behavior. All the internal rules are updated from time to time to correspond with the latest changes in regulations. The company is committed to conduct in accordance with all the legal rules, set by relevant authorities, and strictly condemns any misbehaviour in this respect. All the policies and rules are informed regularly to all employees.
Senior Vice President Eltel Group Corporation,
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