Rexel's significant involvement in reforming the derogation system led to a 20% reduction in its fine, highlighting the company's attempts to address its role in the collusion.

In addition to the fines, Schneider Electric, Rexel, and Legrand are under investigation for further criminal charges related to corruption and collusion, stemming from a judicial inquiry that began in 2018.

The French Competition Authority has imposed a record total of 470 million euros in fines on four major companies in the electrical equipment sector for engaging in 'vertical collusion'.

Schneider Electric received the largest fine of 207 million euros, followed by Rexel at 124 million euros, Sonepar at 96 million euros, and Legrand at 43 million euros.

The collusion involved a system of 'derogations' that allowed distributors to offer lower prices without incurring losses, but manufacturers manipulated these prices, ultimately harming competition.

The Competition Authority criticized these practices as some of the most severe forms of anti-competitive behavior, particularly in the highly concentrated low-voltage electrical sector.

The collusion, which took place from 2012 to 2018, allowed manufacturers to set resale prices and maintain profit margins for distributors, significantly impacting market dynamics.

Specifically, Schneider Electric and its distributors Rexel and Sonepar were involved in a price-fixing agreement from late 2012 to late 2018, while Legrand and Rexel had a similar arrangement from mid-2012 to late 2015.

By the end of 2022, Schneider Electric faced charges of 'collusion' and 'active corruption', while Rexel and Legrand were charged with 'passive corruption'.

The collusion was reportedly facilitated by a non-illegal 'derogation' system that aimed to maintain high standard prices in France, thereby limiting competition and harming consumers.

Following the announcement of the fines, Schneider Electric's stock rose by 1.00%, while Rexel's fell by 0.28% and Legrand's increased by 0.34%.

This fine is the highest ever imposed by the Competition Authority, exceeding total fines from 2022 and 2023, and underscores the seriousness with which vertical price-fixing is treated.