captaink
14th Jun 2006, 11:08
NORWEGIAN CLAIMS COMPENSATION FROM SAS BRAATHENS:eek: :confused: :\
On 13. June 2006, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM) filed charges against SAS Braathens AS for infringement of Section 294 (1) no. 3 and Section 145 (2) and (3) on the misuse of business secrets and illegal computer access.
According to the charge brought by ØKOKRIM, the illegal acts have taken place over a period of several years, lasting from December 2002 up until November 2005 at a minimum. ØKOKRIM has announced that the criminal proceedings against SAS will be heard by Asker and Bærum District Court in week 35 and 36.
The charge is based on a complaint filed by Norwegian on 1 July 2005, in which Norwegian requested that SAS be investigated after Norwegian had received copies of documents from the Norwegian Competition Authority showing that SAS had access to Norwegian`s electronic reservation system at a level of detail to which SAS is not entitled.
ØKOKRIM`s investigation has confirmed Norwegian`s fear that SAS had such access throughout 2003 and 2004, including the period prior to the summer campaign in 2004, with extensive sales of cheap tickets, and up until November 2005. Such access has enabled SAS to conduct its business based on accurate information about how Norwegian managed its volumes and prices, with the exception of one price category, with full insight into how many tickets were sold in each category and the number of passengers in each price range, for up to one year ahead for all destinations.
These are very sensitive business secrets within aviation. Such insight will enable any competitor to match prices and capacity at all times, thus creating problems for its rival.
Against this background, Norwegian will launch an action for damages against SAS for the loss inflicted on Norwegian due to SAS` illegal computer access and misuse of Norwegian`s business secrets.
The principal reason for the claim is that SAS through misuse of Norwegian`s business secrets and illegal computer access has deprived Norwegian of a number of passengers and sales revenues that the company would have obtained in a normal competitive situation. These wrongful acts represent an independent basis of liability in relation to the losses suffered by Norwegian.
In addition, the conditions that have been uncovered show that by having full insight into Norwegian`s price structure, SAS has been able to set prices based on Norwegian`s prices rather than on the company`s own costs, and that the purpose of such pricing is to harm Norwegian in the competition for air transport. In the opinion of Norwegian, such conduct represents an infringement of Section 11 of the Norwegian Competition Act and Section 43 of the EEA Agreement, which prohibits a company from misusing its dominant market position.
At present, it is impossible to indicate the size of the compensation claim, though it is clear that the claim will involve a considerable sum. The size of the compensation will be determined during the civil action currently brought by Norwegian. The civil action will be filed after the criminal proceedings against SAS have been concluded in Asker and Bærum District Court. Norwegian`s claim for compensation is not contingent on SAS being convicted in the criminal proceedings.
ØKOKRIM`s investigation shows that a large number of individuals in SAS have had access to Norwegian`s computer systems and that key persons have used the information for SAS` own business purposes.
Norwegian does not know whether the Board of Directors of SAS Braathens AS, the top management of the SAS Group or the Board of Directors of the SAS Group have been aware of the misuse. In the opinion of Norwegian, this is without legal consequence with respect to the compensation claim - SAS has an objective responsibility for the loss inflicted upon Norwegian through this illegal practice.
For further information, please contact Frode E.
Foss, CFO, tel. (+47) 91 63 16 45See enclosed press release on newsweb.noEkstern link: http://www.newsweb.no/index.asp?melding_ID=130316
On 13. June 2006, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM) filed charges against SAS Braathens AS for infringement of Section 294 (1) no. 3 and Section 145 (2) and (3) on the misuse of business secrets and illegal computer access.
According to the charge brought by ØKOKRIM, the illegal acts have taken place over a period of several years, lasting from December 2002 up until November 2005 at a minimum. ØKOKRIM has announced that the criminal proceedings against SAS will be heard by Asker and Bærum District Court in week 35 and 36.
The charge is based on a complaint filed by Norwegian on 1 July 2005, in which Norwegian requested that SAS be investigated after Norwegian had received copies of documents from the Norwegian Competition Authority showing that SAS had access to Norwegian`s electronic reservation system at a level of detail to which SAS is not entitled.
ØKOKRIM`s investigation has confirmed Norwegian`s fear that SAS had such access throughout 2003 and 2004, including the period prior to the summer campaign in 2004, with extensive sales of cheap tickets, and up until November 2005. Such access has enabled SAS to conduct its business based on accurate information about how Norwegian managed its volumes and prices, with the exception of one price category, with full insight into how many tickets were sold in each category and the number of passengers in each price range, for up to one year ahead for all destinations.
These are very sensitive business secrets within aviation. Such insight will enable any competitor to match prices and capacity at all times, thus creating problems for its rival.
Against this background, Norwegian will launch an action for damages against SAS for the loss inflicted on Norwegian due to SAS` illegal computer access and misuse of Norwegian`s business secrets.
The principal reason for the claim is that SAS through misuse of Norwegian`s business secrets and illegal computer access has deprived Norwegian of a number of passengers and sales revenues that the company would have obtained in a normal competitive situation. These wrongful acts represent an independent basis of liability in relation to the losses suffered by Norwegian.
In addition, the conditions that have been uncovered show that by having full insight into Norwegian`s price structure, SAS has been able to set prices based on Norwegian`s prices rather than on the company`s own costs, and that the purpose of such pricing is to harm Norwegian in the competition for air transport. In the opinion of Norwegian, such conduct represents an infringement of Section 11 of the Norwegian Competition Act and Section 43 of the EEA Agreement, which prohibits a company from misusing its dominant market position.
At present, it is impossible to indicate the size of the compensation claim, though it is clear that the claim will involve a considerable sum. The size of the compensation will be determined during the civil action currently brought by Norwegian. The civil action will be filed after the criminal proceedings against SAS have been concluded in Asker and Bærum District Court. Norwegian`s claim for compensation is not contingent on SAS being convicted in the criminal proceedings.
ØKOKRIM`s investigation shows that a large number of individuals in SAS have had access to Norwegian`s computer systems and that key persons have used the information for SAS` own business purposes.
Norwegian does not know whether the Board of Directors of SAS Braathens AS, the top management of the SAS Group or the Board of Directors of the SAS Group have been aware of the misuse. In the opinion of Norwegian, this is without legal consequence with respect to the compensation claim - SAS has an objective responsibility for the loss inflicted upon Norwegian through this illegal practice.
For further information, please contact Frode E.
Foss, CFO, tel. (+47) 91 63 16 45See enclosed press release on newsweb.noEkstern link: http://www.newsweb.no/index.asp?melding_ID=130316