Czech watchdog fined four cable makers $90M over one shared metal-surcharge formula

The Czech Office for Protection of Competition fined the Czech units of Prysmian (about $44.3M), NKT (about $42.2M), Tele-Fonika ($2.3M) and Kablo Vrchlabí ($1.3M) — roughly $90M combined — over coordination of metal surcharges on copper- and aluminium-containing telecom and power cables. Six producers, including PRAKAB and PRECON, allegedly agreed one formula for calculating the surcharge, cross-checked each other's values, set validity periods and adjusted them in consultation.

The coordination, per the authority, ran from 2010 (NKT, PRAKAB, Prysmian), 2011 (Tele-Fonika) and 2020 (PRECON, Kablo Vrchlabí) until February 2022, and the surcharge values were published through the Association of Cable and Wire Manufacturers of the Czech and Slovak Republics and in the daily Hospodářské noviny. COPC carried out unannounced inspections at the companies' premises in June 2022.

The surcharge exists because cable prices track volatile metal inputs; Prysmian argued the quotation was a public, transparent and voluntary reference tool requested by customers to manage metal-price risk and compare offers, not a price agreement, and that no competitively sensitive information was exchanged.

Combined fines of about $90M: Prysmian $44.3M, NKT $42.2M, Tele-Fonika $2.3M, Kablo Vrchlabí $1.3M

Competitors agreed a uniform surcharge formula and cross-checked each other's values instead of pricing independently

The shared values were published through an industry association and a national newspaper, giving the coordination a public face

The arrangement persisted for up to twelve years, from 2010 to February 2022

Metal-index transparency does not immunise coordination: the authority treated the common formula and consultation as collusion

A public metal index is not a cartel defence when rivals agree the formula, cross-check each other's surcharges and coordinate changes — the transparency itself is the coordination.

PRAKAB escaped a fine under COPC's leniency programme for exposing the alleged agreement; PRECON, in insolvency proceedings with no available assets, was not fined. Prysmian rejected the accusations and said it will appeal; NKT said it contests the factual and legal findings and will appeal to the COPC chairman and, if needed, to Czech courts. The decision, including the fines, is not final.