ArcelorMittal to challenge Euro 302 million fine by French competition panel

16 December 2008

ArcelorMittal, the world's largest steel producer, expects to challenge a Euro 301.78 million (Rs2,000 crore) fine imposed by French competition authority Conseil de la Concurrence on French subsidiaries of ArcelorMittal engaged in steel distribution.

The fine follows an investigation started in 2004 by the DGCCRF (Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes) into historical anticompetitive practices in the steel distribution sector in France, which started in mid 1999.

''ArcelorMittal takes matters of this nature extremely seriously and has a rigorous global compliance programme in place to combat anticompetitive practices,'' the company said in a release.

The company said it will review of the panel's decision and decide on an appeal, adding, ''At this time the company has no further comment to make on the situation.''

The fine comes after ArcelorMittal lost its legal battle against what it sees as unfairness in the way industries are covered by Europe's carbon trading system, in a ruling from Europe's highest court.

The competition council said it fined ArcelorMittal, Kloeckner Distribution Industrielle SA and eight other steelmakers and brokers a record Euro 575.4 million ($785.6 million) for price fixing. Among these companies are three units of ArcelorMittal.