The Czech Office for the Protection of Competition (COPC) has fined the Czech operations of Prysmian, NKT, Tele-Fonika and Kablo Vrchlabà a combined approximately $90 million for alleged cartel activity involving copper- and aluminum-pricing practices that, depending on the company, spanned from 2010 through February 2022.
A COPC press release said Prysmian Kabely s.r.o. received the largest fine, approximately $44.3 million, followed by NKT s.r.o. at approximately $42.2 million. Tele-Fonika Kabely CZ s.r.o. was fined approximately $2.3 million, and Kablo Vrchlabà s.r.o. approximately $1.3 million.
Kablo VrchlabÃ, which employs 427 people and reported 2024 turnover of €184 million, manufactures automotive cables, building wire and 1-kV cables, flexible cables and specialty products. Its plant in VrchlabÃ, Czech Republic, traces its origins to 1923, and the company joined Germany’s Wilms Group in 2017.
Allegations and timeline
According to COPC, the four fined companies, along with PRAKAB Pražská Kabelovna s.r.o. and PRECON s.r.o., agreed on a uniform method for calculating the metal surcharge used in selling prices of copper- and aluminum-containing telecommunications and power cables. The Office said the companies established a common formula, cross-checked surcharge values, set their periods of validity and, when needed, adjusted them after consultation. It said the values were published through the Association of Cable and Wire Manufacturers of the Czech Republic and the Slovak Republic and in the Czech daily Hospodářské noviny.
COPC said the alleged conduct began in 2010 for NKT, PRAKAB and Prysmian; in 2011 for Tele-Fonika; and in 2020 for PRECON and Kablo VrchlabÃ. It said the conduct ended in February 2022. The Office conducted unannounced inspections at the companies’ premises in June 2022.
Company responses and appeals
Prysmian denied the allegations. “Prysmian has received the communication from the Czech Competition Authority and rejects any accusation of wrongdoing,” a company statement said. In it, Prysmian said it would cooperate with the authority during the appeal process and defend its position.
The company described the metal quotation as a public, transparent and voluntary reference tool based on openly available information, rather than a price agreement. It said such indexes are common across industries, had been requested by customers to help them manage metal-price risk and compare offers, and did not involve an exchange of competitively sensitive information, coordinated pricing or harm to competition.
NKT said it disagrees with the Office for the Protection of Competition’s first-instance decision, in which the authority concluded that NKT had engaged in anti-competitive conduct involving metal-surcharge practices. “We contest the factual and legal findings of the authorities and will appeal the decision to the Chairman,” said NKT Chief Legal Officer Morten Bang.
If the COPC chairman upholds the decision and the fine in that administrative appeal, NKT said it is prepared to challenge the outcome in Czech courts. The company said it takes the matter seriously, remains committed to cooperating fully with authorities, and will continue to uphold responsible and ethical business standards.
PRAKAB avoided a fine after submitting a leniency application that provided COPC with information about the alleged agreement, the release said. PRECON, which is in insolvency proceedings and has no available assets, was not fined.
The decision, including the fines, is not final. Prysmian said it will appeal, while NKT said it plans to appeal to the COPC chairman and, if necessary, to Czech courts. Under Czech competition procedures, the companies may generally have 15 days after receiving the decision to appeal to the COPC chairman; the public announcement did not disclose the dates on which the companies were served.
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