High competition-impeding fee risks reducing companies' willingness to facilitate investigations

High competition-impeding fee risks reducing companies' willingness to
facilitate investigations 


Despite NCC's active participation to uncover the facts in the cartel
investigation, the company has been ordered to pay a higher competition-impeding
fee than previously set by the City Court. This is the implication of the
announcement of the Swedish Market Court's decision on the asphalt case. NCC is
critical of the decision, which it believes will reduce the willingness of
companies to assist in similar situations in the future.

- We are surprised and disappointed by the Market Court raising the levy in the
light of that we strongly contributed to enhance the Competition Authority's
investigation. We believe that the contribution rate is too high and today's
ruling means a significant strengthening of previous practice. 

- This had been a golden opportunity for the Market Court to show that it is
worth money to contribute. Our assessment is that the ruling threatens to reduce
the company's willingness to facilitate investigations in similar situations,
says Ulf Wallin, Senior Legal Advisor in the NCC group.

The decision, which entails that the competition-impeding fee to be paid by NCC
is to be raised from SEK 150 million to SEK 200 million, runs completely
contrary to NCC's claim for full exemption from competition-impeding damages.
According to the Competition Act, companies that make a highly significant
contribution to facilitating investigations into competition breaches should
have the potential to be granted exemption from the fee. 

The Market Court is the final instance for examining the degree of NCC's
participation in what is referred to as the Asphalt Cartel.  In July 2007, the
Stockholm City Court ordered NCC to pay a competition-impeding fee of SEK 150
million. NCC appealed the verdict, which it felt did not take consideration of
the company's active role in the investigation. In addition, it was felt that
the magnitude of the fee was unreasonably high in view of the City Court's
confirmation that there was no underlying general agreement to divide up all
asphalt procurement projects from local and central governments; instead, this
was a local phenomenon that emerged during certain individual years. 

NCC made a highly significant contribution to facilitating the Swedish
Competition Authority's investigation by having been the first party to plead
guilty to the charges in some individual cases, in addition to submitting an
extensive internal investigation to the Competition Authority, evidence
(testimony) that facilitated the Competition Authority's investigation. NCC also
cooperated actively with the Competition Authority throughout the investigation,
and ensured that NCC employees stepped forward and witnessed, thus adding
clarity to the investigation.   

Since the inception of the cartel investigation in 2001, NCC has trained more
than 2,800 executives and white collar employees in competition law. The
training program was subsequently linked to the employee's employment agreement,
with the implication that any infringements of the prevailing competition rules
would lead to dismissal.

For further information, please contact:

Ulf Wallin, Senior Legal Advisor, NCC AB, +46 (0)8 585 521 47
Annica Gerentz, Senior Vice President Corporate Communications, +46 (0)8 585 522
04
Lovisa Lagerström Lantz, Acting Press Relations Manager, NCC Group, +46 (0)8 585
523 46, +46 (0)70 592 45 46



All of NCC's press releases are available on www.ncc.se

NCC is one of the leading construction and property development companies in the
Nordic region. NCC had in 2008 sales of fully SEK 57 billion, with 20,000
employees.