HS: Asphalt companies claim Finnish government knew of the cartel

Newspaper Helsingin Sanomat has been following court proceedings of the companies involved in a near-decade long asphalt cartel in Finland vs. the Finnish government and numerous municipalities combined demanding triple digit millions in damages. The seven companies including Lemminkäinen (OMXH: LEM1S) as ring leader as well as subsidiaries of Skanska (OMX: SKA B) and NCC (OMX: NCC A, NCC B) (Skanska Asfaltti and NCC Roads Oy respectively) plus four others are now saying that the State knew about the cartel and allowed it to persist. Therefore it should not be able to demand over 50 million in damages on its accord.

Their argument relies on witness reports, one of whom was reportedly working in The Finnish Transport Agency. The government disputes these claims. The companies were ordered to pay an infringement fine in 2009 for Competition Act violations. They however furthermore argue that despite a cartel being present, the municipalities suffered no losses as a result of it and therefore they should not pay a dime. Some 40 municipalities demand a sum in total somewhat larger than the government and they haven’t been implicated in any foul play in the case.