The Road Sign Cartel – Episode 2 – Caught Red-Handed at the Restaurant

Eight leading manufacturers in the supply and installation of road signs colluded at the expense of the French State and local authorities for nearly 10 years (and even longer in the case of two of the manufacturers). The companies were fined a total of €52.7 million.

Cartels & Cie, a podcast series produced by the French Competition Authority, takes you behind the scenes of some of France’s biggest anticompetitive cases. In this first season, discover the stories behind three major cartels, each explored across two or three episodes.

Guided by journalist Isabelle Souquet, the series features first-hand accounts from investigators at the French Competition Authority, as well as public- and private-sector representatives with knowledge of the cartels.

This podcast was originally produced in French and has been translated into English by the French Competition Authority. All speakers are voiced by professional actors, and all names remain unchanged.

CASE SUMMARY

Between 1997 and 2006, eight companies effectively controlled the road signs sector in France by coordinating prices and dividing up almost all public contracts. The cartel was uncovered when the authorities interrupted a meeting of the cartel members in a large Parisian restaurant. At regular meetings, the members divided up contracts and fixed the prices and discounts that could be offered to buyers, in accordance with rules set out in a document entitled “The Bible”. Each company had to follow the rules strictly, or face financial penalties. Once the cartel was uncovered, prices immediately fell sharply. Following the decision, several French départments obtained compensation through actions for damages brought before the courts.

SPEAKERS IN ORDER OF APPEARANCE

Stanislas Martin, former General Rapporteur at the French Competition Authority

Irène Luc, judge and former Vice-President of the French Competition Authority

Virginie Beaumeunier, former General Rapporteur at the French Competition Authority

Frédéric Farigoule, Director of Roads Management for the Orne département

DECISION (in French only):

https://www.autoritedelaconcurrence.fr/sites/default/files/commitments/10d39.pdf

APPEALS

The decision is final. The reviewing courts upheld the decision on the merits. The fine was reduced by the Paris Court of Appeal.

Judgment of the Paris Court of Appeal of 29 March 2012 (in French only): partially amended

Judgement of the French Supreme Court (Cour de cassation) of 28 May 2013 (in French only): withdrawal – appeal dismissed

This series is an educational resource for the general public. The presentation of the cartels covered is not intended to be exhaustive, and some information provided in the interviews may lack precision or simplify certain aspects of the cases. Listeners are therefore invited to consult the full text of the relevant decisions, available in French on our website (N.B.: only the French version of the full text of each decision is authentic), as well as, where applicable, any judgments subsequently handed down by the reviewing courts, for a complete and accurate understanding of the context and scope of the information presented.

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