Cartel Digest

Elevators & Escalators

Elevators & Escalators
  Overall Cartel Period 1995-2004
  Participants ThyssenKrupp AG and ThyssenKrupp Elevator AG; Otis Elevator Co. and United Technologies Corp.; KONE Corp.; Schindler Holding Ltd.; Mitsubishi Elevator Europe BV
  Total Fines (DOJ) No fines imposed
  Total Fines (EC) €832.3 million

In January 2004, the European Commission (“EC”) conducted raids on elevator and escalator manufacturers in Belgium, Germany, Luxembourg and the Netherlands.  According to the EC, between 1995 and 2004, cartel members rigged bids according to agreed quotas and allocated contracts for the sale, installation and maintenance of elevators and escalators in hospitals, railway stations, shopping centers and other commercial buildings.  To give the impression of competition, fake bids that were too high to be accepted were submitted by the companies who were not supposed to win.  The Korean Fair Trade Commission (“KFTC”) discovered that several of the same companies sanctioned by the EC had also engaged in bid-rigging and allocation of elevator orders in the Korean market between 1996 and 2005.

Enforcement Highlights:

  • The EC imposed fines totaling over €800 million on Otis, KONE, Schindler, ThyssenKrupp and Mitsubishi Elevator Europe.
  • KONE subsidiaries received full immunity under the leniency program for the cartel in Belgium and Luxembourg for being the first to provide information to the EC.  Likewise, Otis Netherlands received immunity for the Netherlands cartel. 
  • The KFTC fined Otis, ThyssenKrupp, Mitsubishi and several Korean manufacturers over ₩41 billion.
Korea
Company Fine Date
Otis Elevator Co. ₩ 17.2 billion 07/01/2005
Dongyang Elevator ₩ 257 million 07/01/2005
Dongyang Heavy Industries ₩ 9.2 billion 07/01/2005
Hyundai Elevator ₩ 13 billion 04/13/2010
Mitsubishi Elevator Korea ₩ 1.1 billion
ThyssenKrupp Elevator Korea ₩ 257 million
DY Holdings ₩ 9.2 billion
Europe
Company Fine Date
ThyssenKrupp AG and ThyssenKrupp Elevator AG € 319.8 million 02/21/2007
Otis Elevator Co. and United Technologies Corp. € 224.9 million 02/21/2007
KONE Corp. € 142.1 million 02/21/2007
Schindler Holding Ltd. € 143.7 million 02/21/2007
Mitsubishi Elevator Europe BV € 1.8 million 02/21/2007