Cartel Digest

Marine Hose

Marine Hose
  Overall Cartel Period 1986-2007
  Participants Bridgestone Corp. and Bridgestone Industrial Ltd.; Yokohama Rubber Co., Ltd.; Dunlop Oil & Marine Ltd., ContiTech AG, and Continental AG; Trelleborg Industrie SAS and Trelleborg AB ; Parker ITR and Parker Hannifin Corp.; Manuli Rubber Industries SpA
  Total Fines (DOJ) $40.3 million
  Total Fines (EC) €131.5 million

In May 2007, several regulatory bodies around the world launched coordinated raids on marine hose manufacturers.  Marine hose is a flexible rubber hose used to transfer oil between tankers and storage facilities.  The European Commission (“EC”) estimated that, between 2004 and 2006, the market for marine hose in Europe was approximately €32 million annually.  According to regulators, from 1986 to 2007, cartel members fixed prices for marine hoses, allocated bids and markets and exchanged commercially sensitive information.   

Enforcement Highlights:

  • The EC imposed fines totaling over €131 million on eleven companies.  For the first time, the Commission inspected a private home under Article 21 of Council Regulation No. 1/2003.
  • The Department of Justice imposed fines of over $40 million on five companies.  Nine executives have entered plea agreements to pay individual fines and serve prison sentences. An additional individual was subject to a six months house arrest. 
  • The Japan Fair Trade Commission issued cease and desist orders against Bridgestone, Dunlop Oil & Marine, Manuli, Parker and Trelleborg, but imposed a surcharge payment order only on Bridgestone.
  • The Korea Fair Trade Commission (“KFTC”) imposed fines on four companies, totaling ₩557 million.
Company Conspiracy Period Fine (USD) Plea Date No. of Excluded Individuals Plea Agreement
Dunlop Oil & Marine Ltd. 1/99-5/07 $4.5 million 01/08/2009 4 Plea Agreement
Trelleborg Industrie SAS 1/99-5/07 $3.5 million 05/15/2009 2 Plea Agreement
Manuli Rubber Industries SpA 1/00-5/07 $2 million 10/21/2008 4 Plea Agreement
Parker ITR Srl 1/99-5/07 $2.3 million 03/25/2010 2 Plea Agreement
Bridgestone Corp. 1/99-5/07 $28 million 09/15/2011 2 Plea Agreement
Individual Company Prison Sentence Fine (USD) Plea Date Plea Agreement
Bryan Allison, Managing Director Dunlop Oil & Marine Ltd. 24 months $100,000 12/12/2007  
David Brammar, Sales & Marketing Director Dunlop Oil & Marine Ltd. 20 months $75,000 12/12/2007  
Peter Whittle, Dunlop Oil & Marine Ltd. 30 months $100,000 12/12/2007  
Christian Caleca, President, Industrial Fluid Business Unit Trelleborg Industrie SAS 14 months $75,000 11/15/2007 Plea Agreement
Jacques Cognard, Product Area Manager Trelleborg Industrie SAS 14 months $100,000 11/15/2007 Plea Agreement
Charles Gillespie, Regional Manager Manuli Rubber Industries SpA 12 months $20,000 05/08/2008 Plea Agreement
Robert Furness, President of subsidiary of Manuli Manuli Rubber Industries SpA 14 months $75,000 10/10/2008 Plea Agreement
Giovanni Scodeggio , Manager Parker ITR Srl 6 months $20,000 08/27/2008  
Misao Hioki, General Manager Bridgestone Corp. 24 months $80,000 12/10/2008 Plea Agreement
Romano Pisciotti, Manager Parker ITR Srl 24 months $50,000 04/24/2014  
Korea
Company Fine Date
Bridgestone Corp. ₩ 319 million
Dunlop Oil & Marine Ltd. ₩ 146 million
Trelleborg Industrie SAS ₩ 50 million
Parker ITR Srl ₩ 42 million
Yokohama Rubber Co., Ltd. No fines imposed
Australia
Company Fine Date
Trelleborg Industrie SAS $ 3.2 million 04/14/2010
Dunlop Oil & Marine Ltd. $ 2.6 million 04/14/2010
Bridgestone Corp. $ 1.6 million 04/14/2010
Parker ITR Srl $ 680,000 04/14/2010
Japan
Company Fine Date
Bridgestone Corp. ¥ 2.3 million 02/22/2008
Europe
Company Fine Date
Bridgestone Corp. and Bridgestone Industrial Ltd. € 58.5 million 01/28/2009
Yokohama Rubber Co., Ltd. Immunity 01/28/2009
Dunlop Oil & Marine Ltd., ContiTech AG, and Continental AG € 18 million 01/28/2009
Trelleborg Industrie SAS and Trelleborg AB € 24.5 million 01/28/2009
Parker ITR and Parker Hannifin Corp. € 25.6 million 01/28/2009
Manuli Rubber Industries SpA € 4.9 million 01/28/2009