UPDATE 1-EU goes to court for damages from lift cartel

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Tue Jun 24, 2008 6:51am EDT

(Adds possible EU damages case against removal firms)

BRUSSELS, June 24 (Reuters) - The European Commission has started legal action for damages from lift manufacturers already hit with 1 billion euros ($1.54 billion) in price-fixing fines, taking a new approach in its antitrust fight.

The Commission found in 2007 that Thyssenkrupp (TKAG.DE), Otis (UTX.N), Schindler (SCHN.S) and Kone (KNEBV.HE) had conspired to fix prices for lifts and escalators sold in Belgium, Germany, Luxembourg and the Netherlands.

The Commission has encouraged victims of cartels to sue as a further deterrent to companies against price-fixing and is now taking its own advice.

"The Commission is doing its utmost to encourage and facilitate actions for damages before national courts by victims of anticompetitive behaviour. In this case, we are leading by example," European Competition Commissioner Neelie Kroes said in a statement on Tuesday.

The Commission said it could not calculate the final amount of damages it might get, but that expert testimony should help determine the degree of overpayment for lifts and escalators in the European Union's buildings in Brussels and Luxembourg.

Anti-fraud Commissioner Siim Kallas said: "It is our duty to seek compensation for these damages. We act firmly where we find contractors act illegally".

The EU executive is also considering suing removal companies in Belgium which it fined a total of nearly 33 million euros in March for a price-fixing and market-sharing cartel, a Commission spokeswoman said.

The companies fined were Allied Arthur Pierre, Compas, Coppens, Gosselin, Interdean, Mozer, Putters, Team Relocations, Transworld and Ziegler, the Commission said at the time.

Belgian capital Brussels is home to the European Commission and other EU institutions, NATO, embassies and the European headquarters of many multinationals, making it a lucrative market for international removal companies handling relocation.

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