Bosch Anti-Competitive Actions on Electronic Braking Systems Class Action

The plaintiffs in this antitrust class action are a group of auto dealerships bringing suit against Robert Bosch GmbH and Robert Bosch, LLC. The complaint alleges that the companies engaged in a conspiracy to raise or fix prices and allocate the market and customers for electronic braking systems in the US. The complaint refers to an enormous auto parts antitrust case filed by the US Department of Justice (DOJ) on the subject.

The class for this action is all automobile dealers who, between February 13, 2007 and the time when the anticompetitive effects of the defendants’ conduct ceases, bought a new four-wheeled passenger auto, van, SUV, crossover, or pickup truck in the US which included one or more electronic braking systems as a component part which were made or sold by the Bosch defendants, any of their current or former subsidiaries, or any of their co-conspirators.

The co-conspirators named in this case are Continental AG, Continental Teves AG & Co. oHG, Continental Automotive GmbH, and Continental Automotive Systems, Inc. The complaint says that other unnamed co-conspirators, makers, and suppliers also exist.

Autos can have two types of braking systems, hydraulic braking systems and electronic braking systems. Electronic braking systems can have anti-lock braking systems to prevent cars from skidding when braking or electronic stability controls (ESC) to prevent skidding under other conditions. Vehicles can have both types of systems.

The complaint alleges that the Bosch companies “and their co-conspirators agreed, combined, and conspired to fix, raise, maintain and/or stabilize prices, rig bids, and allocate the market and customers in the United States for electronic Braking Systems.”

The complaint points to a criminal investigation of the DOJ’s Antitrust Division into price fixing and bid rigging in the automotive parts industry, which the complaint calls “the largest criminal investigation the Antitrust Division has ever pursued…” It has included FBI raids on the offices of some major competitors in the industry.

Similarly, the European Commission’s (EC’s) Directorate General (DG) for Competition has also raided the offices of automotive parts manufacturers in Europe. One such raid was on the premises of Continental. Continental subsequently revealed contacts with Bosch about sales of electronic braking systems, which the complaint says led the EC to conclude that the companies had violated EU competition laws.

The EC’s DG of Competition issued a decision, the complaint alleges, that stated that the Bosch companies “and their co-conspirators participated in a set of agreements and concerted practices concerning the exchange of sensitive business information for the purposes of reducing competitive uncertainty in the area of sales of Electronic Braking System[s]” through a number of means.

As a direct result of the anti-competitive actions, the complaint alleges that the plaintiffs in this case and the members of the class were forced to pay artificially inflated prices for Electronic Braking Systems and the vehicles that contained them.

Article Type: Lawsuit
Topic: Antitrust
Tags: Allocation of Customers Territories or the Like, Antitrust, Brakes, Collusion and Price Fixing