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Infineon targeted in EU price fixing probe

Sites belonging to the German semi-conductor maker Infineon were searched within the framework of a European Commission probe into suspected price fixing of smart-cards, the company said on Wednesday.

Published: 7 January 2009 14:12 CET

Infineon targeted in EU price fixing probe

File photo of Infineon lab work. Photo: DPA

“Searches took place on October 21 and 22,” a spokesman told news agency AFP, adding that Infineon was cooperating with the investigation. The probe focused on the company’s smart card and security systems division, he said.

Smart-cards contain computer chips that process data, and are typically used in credit or identification cards, as well as in telephone SIM cards. The European Union’s top competition regulator said Wednesday it had raided smart-card chip producers in several EU nations on cartel suspicions.

The companies targeted by the probe were not identified. Under EU regulations companies found to have taken part in a cartel can be fined up to 10 percent of its annual sales. No strict deadline is set for cartel inquiries, with their length dependent on the complexity of each case, the extent to which suspects cooperate and the way they use their right to defence.

EU competition commissioner Neelie Kroes has focused on fighting practices that curb competition, and heavier fines have been levied in recent years. The biggest to date came in mid November, when four glass producers were fined a total of €1.38 billion ($1.86 billion), of which the French group Saint-Gobain was told to pay €896 million.

Germany, Czech Republic accuse Russia of cyberattacks

The accusations come at a time of strained relations between Moscow and the West following Russia’s 2022 invasion of Ukraine and the European Union’s support for Kyiv.

German Foreign Minister Annalena Baerbock said a newly concluded government investigation found that a cyberattack targeting members of the Social Democratic Party had been carried out by a group known as APT28.

APT28 “is steered by the military intelligence service of Russia”, Baerbock told reporters during a visit to Australia.

“In other words, it was a state-sponsored Russian cyberattack on Germany and this is absolutely intolerable and unacceptable and will have consequences.”

APT28, also known as Fancy Bear, has been accused of dozens of cyberattacks in countries around the world. Russia denies being behind such actions.

The hacking attack on German Chancellor Olaf Scholz’s SPD party was made public last year. Hackers exploited a previously unknown vulnerability in Microsoft Outlook to compromise e-mail accounts, according to Berlin.

Berlin on Friday summoned the acting charge d’affaires of the Russian embassy over the incident.

The Russian embassy in Germany said its envoy “categorically rejected the accusations that Russian state structures were involved in the given incident… as unsubstantiated and groundless”.

Arms, aerospace targeted: Berlin

German Interior Minister Nancy Faeser said the cyber campaign was orchestrated by Russia’s military intelligence service GRU and began in 2022. It also targeted German companies in the armaments and aerospace sectors, she said.

Such cyberattacks are “a threat to our democracy, national security and our free societies”, she told a joint news conference in Prague with her Czech counterpart Vit Rakusan.

“We are calling on Russia again to stop these activities,” Faeser added.

Czech government officials said some of its state institutions had also been the target of cyberattacks blamed on APT28, again by exploiting a weakness in Microsoft Outlook in 2023.

Czech Interior Minister Rakusan said his country’s infrastructure had recently experienced “higher dozens” of such attacks.

“The Czech Republic is a target. In the long term, it has been perceived by the Russian Federation as an enemy state,” he told reporters.

EU, NATO condemnation

The German and Czech findings triggered strong condemnation from the European Union.

“The malicious cyber campaign shows Russia’s continuous pattern of irresponsible behaviour in cyberspace, by targeting democratic institutions, government entities and critical infrastructure providers across the European Union and beyond,” EU foreign affairs chief Josep Borrell said.

The EU would “make use of the full spectrum of measures to prevent, deter and respond to Russia’s malicious behaviour in cyberspace”, he added.

State institutions, agencies and entities in other member states including in Poland, Lithuania, Slovakia and Sweden had been targeted by APT28 in the past, the statement added.

The latest accusations come a day after NATO expressed “deep concern” over Russia’s “hybrid actions” including disinformation, sabotage and cyber interference.

The row also comes as millions of Europeans prepare to go to the polls for the European Parliament elections in June, and concerns about foreign meddling are running high.

Czech Foreign Minister Jan Lipavsky told AFP that “pointing a finger publicly at a specific attacker is an important tool to protect national interests”.

One of the most high-profile incidents so far blamed on Fancy Bear was a cyberattack in 2015 that paralysed the computer network of the German lower house of parliament, the Bundestag. It forced the entire institution offline for days while it was fixed.

In 2020, the EU imposed sanctions on individuals and entities linked to the APT28 group over the incident.

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