Baker McKenzie and Taylor Wessing in the multi-million-fine-case between Ruag and Diehl

Ruag, the Swiss company active in the fields of aerospace and defence, escaped a multi-million fine. On the opposite, the German company Diehl, partner of the German Bundeswehr and international armed forces, has to pay a 1.2 millions fine for violations of EU competition law. The case is the first cartel prosecuted by the EU Commission in the defence sector. The fine was imposed by the EU Commission after a settlement procedure. The cartel watchdogs took into account the Nuremberg-based company’s willingness to cooperate and reduced its fine by 50 percent.

The fact

The Swiss aerospace and defence company Ruag disclosed the agreements about a year and a half ago, triggering investigations by the European competition authority in the defence sector.

Between 2007 and 2021, Diehl and Ruag allegedly divided the market for military hand grenades in European countries between themselves. According to this, the companies were only allowed to sell their hand grenades in the territories allocated to them, unless there was explicit consent from the other party.

The consultants

Ruag has been represented by Baker McKenzie with partners Nicolas Kredel (pictured, left) and Anika Schürmann (both Antitrust), Katharina Weiner (Public Commercial Law); and associates Pia König and Markus Mossmann (both Antitrust).

Ruag’s in-house legal team was also active, with Remigius Fent (General Counsel) and Alexander Harte (Vice President Compliance).

Diehl has been represented by Taylor Wessing law firm, with partners Marco Hartmann-Rüppel (pictured, right), Stephan Nagel and Stefan Horn; and associates: Lara Skotki, Niklas Melzer, Lena Rindsfus (all Antitrust).

Claudia de Cesaris (Head of Antitrust Unit G2) was active from EU Commission, Directorate-General for Competition.