Business News
Insurance companies fined 180m dollars for Spanish cartel
Nov 13, 2009, 9:38 GMT
Madrid - Spain's National Competition Commission (CNC) has handed six large insurance companies fines worth a total of 120.7 million euros (180 million dollars), the largest ever fine for violating competition rules in Spain, the CNC said Friday.
Spain's Mapfre, Asefa and Caser as well as Swiss Re, Germany's Munich Re and the French company Scor were penalized for creating a long-term price cartel affecting the entire market of a compulsory construction insurance.
The companies sealed an agreement on minimum prices which they wrote down in a 2001 document as Spain's housing boom was taking off, the CNC said.
The price cartel lasted until 2007.
The companies pressured and boycotted anyone who did not want to respect the minimum prices, even breaking commercial deals that had already been signed, the CNC said.
The cartel affected compulsory insurances covering possible defects or damage in new buildings for 10 years, thus hiking up housing prices.
Asefa was ordered to pay a fine of 27.8 million euros, Swiss Re 22.6 million, Mapfre 21.6 million, Scor, 18.6 million, Munich Re, 15.9 million and Caser 14.2 million euros.
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