Origin of the Cartel Among the Four Major Manufacturers of Elevators and Escalators:, Kone, Otis, Schindler and Thyssenkrupp

Topics: European Union, Escalator, Otis Elevator Company Pages: 2 (500 words) Published: March 13, 2013
The orgin of the cartel
The EC started an investigation in early 2004 on its own initiative after being approached by an informant with information concerning the possible existence of a cartel among the four major manufacturers of elevators and escalators present in the European Union, KONE, Otis, Schindler and ThyssenKrupp. They found out that 17 national subsidiaries of the above undertakings, as well as their controlling parents, and to Mitsubishi Elevator Europe B.V. which participated in the Dutch cartels are guilty for participating cartels. The products which this industry is related to are elevators and escalators, as well as the provision of maintenance and modernization services for these products. The elevator and escalator sectors in Europe are highly concentrated. KONE, Otis, Schindler and ThyssenKrupp are international manufacturers of elevators and escalators and are the most important manufacturers operating in Europe. Their aggregate European share of sales in the elevators and escalators sectors amounted to approximately 77% in (by volume) in 2003. In Belgium, the four undertakings accounted for approximately 83% and in Germany 63% of sales in escalators and elevators combined. Even in Luxembourg close to 100% of all escalator sales. In the Netherlands, KONE, Otis, Schindler, ThyssenKrupp and Mitsubishi accounted for close to 88% of sales in escalators and elevators in 2003. If we look at maintenance which is the most profitable service of the industry we see that in Belgium the big 4 has a market share of 71% and in Germany 51%.In the Netherlands, KONE, Otis, Mitsubishi, Schindler and ThyssenKrupp accounted for approximately 83% (by volume) of services of elevators and escalators in 2003. If we look at the modernization services we see that in Belgium the big 4 accounted for approximately 75% and in Germany 82 % of modernization services in 2003. In the Netherlands the big 4 and Mitsubishi accounted for approximately 97% of modernization...
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