The European Commission (EC) found existence of cartel among two manufacturers/ suppliers of military hand grenade in the European Union. The EC noted that Diehl and RUAG, both competitors, colluded amongst themselves on the basis of geographical area for the supply of hand grenades in the European Union. This split of supply in national markets existed for almost 14 years in which both supplied their hand grenades only in their allocated territory unless the other party gave its consent. The EC received the information about the cartel from RUAG, as a result of which it received full immunity from any fines & considering Diehl’s cooperation in investigation, it received 50% reduction in fines, which resulted in € 2.5 Million fine being imposed on Diehl.