On June 30, German authorities announced that they are investigating up to 10 steel and rail companies for operating an illegal cartel for at least a decade to fix the price of rails. The national rail operator Deutsche Bahn is also may have been defrauded of millions of euros, Reuters has reported.
German newspaper Westdeutsche Allgemeine Zeitung has reported that Deutsche Bahn is thought to have bought up to 300,000 mt of steel a year at fixed prices, adding that the rail operator may have overpaid by as much as €100 million for steel and rail equipment.
Germany's largest steelmaker ThyssenKrupp confirmed that one of its small subsidiaries, GfT Gleistechnik GmBH, is among the group under investigation for alleged anticompetitive practices.
ThyssenKrupp said it had a zero-tolerance policy towards anticompetitive behavior and was co-operating with investigators. Senior managers at ThyssenKrupp GfT Gleistechnik have already been replaced.
Two local units of Austrian steelmaker Voestalpine are also involved in the investigation, which covers a total of 30 suspects in 10 companies. Voestalpine officials stated that they will cooperate with the authorities.