On the European Court of Justice Decision Regarding Power Cables Cartel (lost decision)
Following the July 13, 2018 announcement “European Court of Justice Decision Regarding Power Cables Cartel,” in objection to the General Court judgements, Furukawa Electric Co., Ltd. (hereinafter, “the Company”) appealed to the European Court of Justice (ECJ), requesting a reduction in the fines placed upon the Company by the European Commission and confirmed by the General Court.
The ECJ handed down a final judgment dismissing the Company’s appeal on December 19, 2019 after a recent series of similar losses for appeals by other companies in the same industry. The same judgement applies to the Company and Viscas Corporation, an equity-method affiliate of the Company (ownership ratio: 50% Furukawa Electric Co., Ltd., 50% Fujikura Ltd.).
Fines associated with this incident were previously recorded during the fiscal year ended March 2014 as described below and will have no impact on future results.
- A total of ¥1.25 billion corresponding to the 8,858,000 euro fine imposed on the Company was recorded as an extraordinary loss.
- A total of ¥4.96 billion corresponding to the 34,992,000 euro fine imposed on Viscas Corporation was recorded by that company as an extraordinary loss. Of the extraordinary loss recorded by Viscas Corporation, a portion (¥2.48 billion) equivalent to the ownership ratio (50%) has already been reflected in the Company’s profit/loss in equity method affiliates through the net profit/loss of Viscas Corporation.