The Czech competition authority has imposed significant fines totaling 1,942,000,000 koruna on four companies involved in the production and sale of cables due to their participation in a cartel agreement. One manufacturer was exempt from penalties after reporting the cartel under a leniency program.

The companies involved, including Kablo Vrchlabí, NKT, PRAKAB, and others, coordinated on the pricing of metallic telecommunications and energy cables, which included copper and aluminum. This coordination disrupted competition in the Czech market and affected trade between EU member states.

The illegal price coordination lasted for several years, with some companies participating since 2010. The cartel was dismantled in February 2022 after unannounced inspections were conducted by the authority in June of the same year.

The cartel members established a formula for calculating the metal prices in cables, which significantly impacted the overall pricing. They shared calculated values and adjusted them through mutual consultations, effectively eliminating competition on a substantial part of cable pricing.

The case was initiated following a leniency request from PRAKAB, which provided crucial information about the cartel's existence, allowing the authority to gather further evidence. As a result, PRAKAB avoided penalties, while PRECON, currently in insolvency, was not fined due to lack of assets.

The fines imposed on the other cartel participants were determined based on the authority's methodology, considering the duration of the anti-competitive behavior and the high sales values of the affected products. The fine for Prysmian is the highest ever imposed by the authority on a single company.