Schneider, Legrand, Rexel, Sonepar Fined in French Price Fixing Probe

According to an article by Reuters, France’s competition authority fined Schneider Electric, Legrand, Rexel, and Sonepar a total of 470 million euros ($508.49 million) for fixing prices on October 30, 2024. Schneider Electric was fined 207 million euros, Rexel 124 million euros, Sonepar 96 million euros, and Legrand 43 million euros.

The decision sanctions two price agreements: one between Schneider Electric and its distributors Rexel and Sonepar from December 2012 to September 2018; and the other between Legrand and its distributor Rexel from May 2012 to September 2015, the article said.

All four of the companies contested the decision by the antitrust agency.

The companies issued the following statements on their websites.

Rexel was informed of the operative part of the French Competition Authority’s decision, which considers the so-called special price agreement mechanism (“dérogations”) as anti-competitive and sanctions Rexel, along with Schneider, Legrand and Sonepar. Rexel was ordered to pay a fine of 124 million euros.

Rexel considers that this dérogations mechanism, which is transparent and known to all market players, is a standard commercial discount on the purchase price granted by the supplier to the distributor, leaving it completely free to set its resale prices and offer its customers the most competitive offer.

Rexel will carefully study the Competition Authority’s decision and reserves the right to appeal its decision before the Paris Court of Appeal.

Schneider Electric acknowledges the decision adopted by the French Competition Authority on October 29, 2024 to sanction several companies concerning the electrical distribution activities in France, including Schneider Electric for a €207 million penalty. This decision relates to the previously disclosed investigation initiated in September 2018.

Schneider Electric firmly disagrees with the finding of the French Competition Authority and rejects any allegation that its distribution practices are not compliant with competition rules.

Schneider Electric’s commercial policy is designed to comply with all regulations. Schneider Electric has always cooperated with the authorities and intends to continue to do so.

Schneider Electric reserves the right to appeal the decision.

Legrand has taken note of the enforceable decision of the French Competition Authority ordering Legrand to pay a fine of €43 million for the application of derogated prices on the French market between 2012 and 2015.

Legrand categorically rejects the allegation made against it and reserves the right to appeal this decision.

Legrand reiterates its firm commitment to comply strictly with applicable law, in particular competition law.

The French Competition Authority sanctioned several players active in the sector for the distribution of electrical equipment in France, including Sonepar, in proceedings involving allegations of vertical price fixing between two manufacturers and two distributors. 

Sonepar was fined EUR 96 million for having allegedly allowed the manufacturer Schneider Electric to fix the resale prices of Sonepar to its customers. However, the Authority dismissed the existence of any anti-competitive agreement between Sonepar and Legrand.

Sonepar believes that it acted in the interest of its customers and in strict compliance with competition rules, and firmly contests the decision of the French Competition Authority. Sonepar will appeal the decision before the Paris Court of Appeal and remains confident in its ability to prove that the decision is unfounded both in law and in facts.