EU fines German hand grenade manufacturer $1.3M over cartel allegations

The European Commission on Wednesday imposed a €1.2 million (approximately $1.3 million) penalty on German defense firm Diehl for setting up a cartel in the hand grenade market.

The EU executive body announced in a statement that it had "fined defense company Diehl €1.2 million for participating in a cartel concerning the sale of military hand grenades together with its rival RUAG."

According to the European Commission's investigation, the two companies agreed on which European countries they would sell hand grenades in between 2007 and 2021.

Both Diehl and RUAG admitted their involvement in the cartel, but the latter "was not fined as it revealed the cartel to the (European) Commission under the leniency program," the statement explained.

By denouncing the cartel, the Switzerland-based RUAG avoided a fine of around €2.5 million.

Diehl's fine was also reduced by 50% for cooperating with the European Commission.

Maintaining fair competition in the EU's internal market is one of the few exclusive competencies of the EU. It allows the European Commission to decide on antitrust rules and impose penalties on companies that violate EU law.