The European Commission has taken action against Diehl, a defence company, imposing a fine of €1.2 million for its participation in a cartel concerning the sale of military hand grenades. This case marks a significant enforcement action in the defence sector, highlighting the Commission's commitment to tackling anti-competitive practices.

Diehl and its rival RUAG were found to have divided national markets within the European Economic Area (EEA) for nearly 14 years, allowing only the designated manufacturer to sell military hand grenades in their respective territories. The infringement lasted from November 7, 2007, to November 23, 2021, with RUAG's involvement ceasing on April 15, 2021.

The fine imposed on Diehl was determined based on the Commission's 2006 Guidelines on fines, which consider the nature, geographic scope, and duration of the infringement. To ensure adequate deterrence, the Commission exercised its discretion to increase the fine significantly, despite the initial calculation suggesting a lower amount. Both companies benefited from a 10% reduction in fines due to their cooperation and acknowledgment of their involvement in the cartel.

This case was initiated following a leniency application from RUAG, which led to further investigations and the eventual fine for Diehl. The Commission's leniency programme encourages companies to disclose cartel participation, offering them the chance to avoid or reduce fines.

In addition to the fine, the Commission's decision allows affected parties to seek damages in national courts, reinforcing the legal framework for addressing anti-competitive behavior. The Antitrust Damages Directive facilitates the process for victims to claim damages resulting from such practices.