Competition and Regulation
The Cartel Alert

The Shepherd and Wedderburn Cartel Alert provides details of cartel proceedings in which an adverse decision has been adopted or where an adverse preliminary view in the form of a statement of objections has been reached. In addition, details of investigations into abuse of a dominant position are included.

The service is designed as an easy to digest dossier to keep you up to date on any cartel investigations and to allow you to consider your options if you are or have been a customer of any of the implicated companies. We are happy to advise you further on the routes open to you if you think about claiming for damages or if it might be likely that damages actions could be brought against you in the English or Scottish courts.

Below we provide you with details of cartels uncovered and proceedings commenced within the past year.

Electrical Equipment
Infringement Cartel
Parties Undisclosed
Product and markets Flexible Alternating Current Transmission Systems (FACTS). This equipment is used to increase the power transfer capability of electricity transmission networks
Fine  
Proceedings

The European Commission has carried out targeted inspections at the premises of producers of Flexible Alternating Current Transmission Systems (FACTS)
 

Bananas
Infringement Cartel
Parties Undisclosed
Product and markets Bananas in Southern Europe
Fine  
Proceedings

The European Commission has sent a Statement of Objections to a number of companies active in the import and marketing of bananas, concerning their alleged participation in a cartel
 

Cathode Ray Tubes
Infringement Cartel
Parties Undisclosed
Product and markets Two types of cathode ray tubes, namelycolour display tubes used in computer monitors and colour picture tubes used in colour television sets.
Fine  
Proceedings

The European Commission it has sent a Statement of Objections to a number of companies active in the cathode ray tubes (CRT) industry, concerning their alleged participation in two separate cartels in violation of EC Treaty rules on restrictive business practices.
 

Heat Stabilisers Cartel
Infringement Cartel
Parties Akzo, Elementis, Elf Aquitaine, Baerlocher, Ciba, Reagens, AC Treuhand, Akzo, Chemson, Ciba, Faci
Product and markets Tin stablisers and expoxidised soybean oil which are heat stabilisers used in packaging, food packaging, credit cards, bottles, coatings, flooring, artificial leather, plastic wallpaper, and other everyday use plastic products.
Fine  €173,864,000 
Proceedings

The European Commission has imposed a total of € 173,864,000 fines on 24 companies from 10 different undertakings for violating the EC Treaty’s ban on cartels and restrictive business practices (Article 81). Chemtura Corporation participated but was not fined because it revealed the existence of the cartels to the Commission.

Between 1987 and 2000 the companies fixed prices, shared customers, allocated markets and exchanged sensitive commercial information for tin stabilisers (1987-2000) and ESBO/esters (1991-2000) heat stabilisers in the European Economic Area (EEA). Fines on Arkema France, Baerlocher and Ciba were reduced for cooperating with the Commission investigation. On the other hand, Arkema France's fine was increased by 90% as it had previously taken part in similar cartels.
 

Power Transformers Cartel
Infringement Cartel
Parties ABB, AREVA T&D, ALSTOM, Fuji Electrics, Hitachi and Toshiba
Product and markets Power Transformers
Fine  €67,644,000 
Proceedings

The European Commission has imposed fines totalling €67,644,000  on seven companies for violating the EC Treaty’s ban on cartels and restrictive business practices (Article 81). Siemens also participated but was not fined because it revealed the existence of the cartel in question to the Commission.

Between 1999 and 2003, Japanese and European producers of power transformers operated an oral market sharing agreement, referred to as a "Gentlemen's Agreement", where they agreed that the Japanese members would not sell power transformers in Europe and that the European members would not sell power transformers in Japan. The power transformers in question are used to modify the voltage in electricity transmission networks. The fine for ABB was increased by 50% because it had previously taken part in a similar infringement.
 

Concrete reinforcing bar
Infringement Cartel activities
Parties Alfa Acciai, Ferriere Nord, Feralpi, IRO, Leali, Lucchini, Riva Fire and Valsabbia
Product and markets French and German Gas sector
Fine €83 250 000
Proceedings The European Commission has re-adopted a decision on a cartel in the concrete reinforcing bar sector in Italy, following the annulment of the previous decision by the Court of First Instance on 25 October 2007 for procedural reasons. The new decision imposes a total of fines of €83 250 000 on eight companies for participating in the cartel, in violation of Article 65 (1) of the ECSC Treaty, in force at that time. The companies fixed various elements of the price of reinforcing bars, used for strengthening columns and other concrete structures in buildings, and limited or controlled the output and sales. The infringement lasted from December 1989 to May 2000. With one small exception, the fines adopted today are the same as those in the original decision.
 

Cement Sector
Infringement Suspected anti-competitive practices
Parties Undisclosed
Product and markets Cement and related products
Fine  
Proceedings The European Commission carried out unannounced inspections on 22 nd and 23 rd September 2009 at the premises of undertakings active in the cement and related products industry in Spain under suspicion that they may have violated EC Treaty antitrust rules prohibiting cartels and restrictive business practices and/or abuse of a dominant market position (Articles 81 and 82 respectively).
 

Calcium Carbide Cartel Activity
Infringement Cartel activities
Parties

Almamet, Donau Chemie, Ecka Granulate, Holding Slovenske elektrarne, Novácke chemické závody, garantovaná, SKW Stahl-Metallurgie, Evonik Degussa and Arques industries
Product and markets Calcium carbide and magnesium powder
Fine € 61 120 000
Proceedings

The European Commission has imposed a total of € 61 120 000 fines on nine companies for violating the EC Treaty’s ban on cartels and restrictive business practices (Article 81). Akzo Nobel also participated but was not fined because it revealed the existence of the cartel to the Commission.

Between 2004 and 2007 the companies fixed prices and shared markets for calcium carbide powder, calcium carbide granulates and magnesium granulates in a substantial part of the European Economic Area (EEA). Calcium carbide powder and magnesium granulates are used in the steel industry for desulphurisation or deoxidation purposes. Calcium carbide granulates are used for the production of acetylene, a welding gas. The fine for Evonik Degussa was increased by 50% because it had previously taken part in similar infringements.
 

CRT Glass Bulbs
Infringement Suspected infringement of Article 81
Parties Special glass sector companies
Product and markets Special glass products for commercial and industrial optical and electronic applications
Fine  
Proceedings The European Commission has confirmed that Commission officials inspected industrial premises in the special glass sector on 4 March 2009
 

French and German gas markets
Infringement Breach of Article 81
Parties E.ON AG and its subsidiary E.ON Ruhrgas AG (of Germany) and GDF Suez SA (of France)
Product and markets French and German Gas sector
Fine E.ON/E.ON Ruhrgas €553 000 000
GDF Suez €553 000 000
Proceedings The European Commission imposed it's first fine for an antitrust infringement in the energy sector when it imposed fines totalling €1 106 000 000 on E.ON AG and its subsidiary E.ON Ruhrgas AG and GDF Suez SA for market sharing in breach of the EC Treaty rules on cartels and restrictive business practices in relation to an agreement reached in 1975 when the companies jointly agreed to build the MEGAL pipeline across Germany to import Russian gas into Germany and France whereby the parties agreed not to sell gas transported over this pipeline in each other's home markets.  The market-sharing agreement was maintained after the liberalisation of the European Gas markets and was only definitely abandoned in 2005. 
 

Heat Stabilisers Cartel
Infringement Cartels
Parties Heat Stabiliser companies
Product and markets Tin stablisers and expoxidised soybean oil which are heat stabilisers used in packaging, food packaging, credit cards, bottles, coatings, flooring, artificial leather, plastic wallpaper, and other everyday use plastic products.
Fine  
Proceedings The European Commission sent a Statement of Objections to a number of active companies in the heat stabilisers sector in respect of their alleged participation in a cartel.
 

Sodium Gluconate Cartel

Infringement

Cartel
Parties Akzo, ADM, Roquette, AVEBE, Fujisawa Pharmaceutical Company Limited and  Jungbunzlauer
Product and markets Sodium Gluconate
Fine

 €57.53 million (Akzo was fined a total of €9 million, ADM €10.13 million, Roquette €10.8 million, AVEBE €3.6 million and Fujisawa Pharmaceutical Company Ltd. €3.6 million)
Proceedings On 19 March 2009, the European Court of Justice dismissed the actions by Archer Daniels Midland Company (ADM), against the Judgment of the Court of First Instance delivered on 27 September 2006 upholding the Commission’s October 2001 decision fining a worldwide Sodium Gluconate cartel. In particular, the CoJ confirmed the fine imposed on ADM.
 

Compressors for Refrigeration 
Infringement Suspected Article 81 infringements, price fixing and customer allocation.
Parties Undisclosed
Product and markets Compressors for refrigeration
Fine  
Proceedings The European Commission confirmed that on 17 February 2009 Commission officials carried out unannounced inspections in several Member States at the premises of producers of compressors, used mainly for domestic refrigeration and freezers and commercial refrigeration.
 

Prestressing Steel Cartel 
Infringement Cartel activities
Parties Undisclosed
Product and markets Prestressing steel
Fine  
Proceedings On 5 February 2009, the European Commission confirmed that it sent a Statement of Objections to a number of companies active in the supply of prestressing steel, concerning their alleged participation in a cartel in October 2008. The products under investigation are mainly used in the construction industry. All the companies concerned have now replied to the Statement of Objections and the Commission is in the process of considering their replies.
 

High Voltage Power Cable sector
Infringement Suspected Article 81 infringements, price fixing
Parties Undisclosed
Product and markets High voltage undersea power cables
Fine  
Proceedings On 3 February 2009, the European Commission confirmed that on 28-30 January 2009 Commission officials carried out unannounced inspections at the premises of companies involved in the manufacture of high voltage undersea cables.
 

Marine Hoses
Infringement Cartel activities
Parties Bridgestone, Dunlop Oil & Marine/Continental, Trelleborg, Parker ITR and Manuli
Product and markets Marine hoses used to transport crude oil to and from ships for transportation from production sites
Fine

 € 131 510 000 (The fines for Bridgestone and Parker ITR were increased by 30% because of their leadership of the cartel. Manuli was granted a 30% reduction of its fine for its cooperation with the investigation under the Commission's leniency programme.)
Proceedings
The European Commission has fined five companies for participating in a cartel for marine hoses between 1986 and 2007 in violation of the ban on cartels and restrictive business practices in the EC Treaty (Article 81) and the EEA Agreement (Article 53) due to cartel members fixing prices for marine hoses, allocating bids and markets and exchanging commercially sensitive information. Yokohama also participated in the cartel but was not fined because it revealed the existence of the cartel to the Commission.
 

Smart Card Chip Sector
Infringement  Suspected Article 81 infringements, cartel activities
Parties Undisclosed
Product and markets Smart card chips
Fine  
Proceedings The European Commission confirmed carrying out unannounced inspections at the premises of several smart card chip producers in several Member States.
 

Power Transformers Cartel
Infringement  Cartel
Parties  Undisclosed
Product and markets Power Transformers
Fine  
Proceedings The European Commission confirmed sending a Statement of Objections to a number of producers of power transformers on 11 December 2008
 

Car Glass
Infringement  Cartel
Parties Saint-Gobain, Pilkington, Asahi/ AGC Flat Glass, Soliver
Product and markets Car Glass
Fine  Total = EUR1,383,896,000. Aasahi benefited from a 50% reduction in the fine imposed under the Commission's 2002 Leniency Notice. The fine imposed on Saint-Gobain reflects a 60% increase due to the fact that it is a repeat offender.
Proceedings The Commission conducted dawn raids in February 2005 after reliable information from an informant. The companies were found to have held regular discussions aimed at maintaining the stability of market shares of each of them in the European market. The cartel activities took place between early 1998 and early 2003.
 

Cement Sector
Infringement  Suspected anti-competitive practices
Parties  Undisclosed
Product and markets Cement and related products
Fine  
Proceedings On 5 November 2008 the European Commission confirmed carrying out unannounced inspections at the premises of companies active in the cement sector in various Member States
 

Banana Importers
Infringement  Cartel Activities
Parties  Dole (USA), Del Monte/Weichert (USA and Germany), Chiquita (USA)

Product and markets

 Bananas
Fine  Total = EUR60.3 million. Chiquita benefited from full immunity under the Leniency Notice from a fine, which would have been set at EUR83.2 million.
Proceedings Chiquita applied for immunity under the 2002 Leniency Notice, and the Commission then started investigating the alleged cartel. The cartel members co-ordinated the setting of their quotation prices for bananas in Austria, Belgium, Denmark, Finland, Germany, Luxembourg, The Netherlands and Sweden. On numerous occasions over the three year period from 2000-2002 there were bilateral phone calls among the companies, where they discussed or disclosed their pricing intentions, in particular stating how they saw the price evolving or whether they intended to maintain, increase or decrease the quotation price.
 

Paraffin Waxes
Infringement  Cartel Activities
Parties  Sasol, Repsol, ExxonMobil, ENI, Tudapetrol, Hansen & Rosenthal, MOL, RWE, Total, Shell
Product and markets Paraffin Waxes
Fine  Total = EUR676,011,400
Proceedings the Commission found that producers of paraffin waxes and slack wax within 10 corporate groups had operated a cartel to fix the prices for paraffin waxes. The cartel lasted from 1992 to 2005.
 

Central Processing Unit and PC Sector
Infringement Restrictive business practices and/ or abuse of a dominant position.
Parties Intel
Product and markets Computer chip manufacturing
Proceedings Further to the statement of objections sent to Intel on 26 July 2007, the European Commission has now served a further statement of objections reinforcing and expanding on the points outlined in last year's document.
 

Tobacco Price Fixing
Infringement Price fixing
Parties Asda, First Quench, Gallaher, One Stop Stores (formerly named T&S Stores), Somerfield, and TM Retail.
Product and markets Tobacco products in the UK
Fine A total of £132.3 million
Proceedings Six companies have reached early resolution agreements with the OFT admiting that they have admitted previously engaged in unlawful practices in relation to retail prices for tobacco products in the UK. The parties have agreed to pay individual penalties which come to a combined maximum of £173.3m before discounts for leniency.
 

Consumer Detergents
Infringement Cartel activities
Parties Undisclosed parties
Product and markets Consumer detergents
Proceedings The European Commission has confirmed that it has carried out unannounced inspections at the premises of several producers of consumer detergents such as washing machine and dishwasher detergents, and laundry softeners. The Commission has reason to believe that the companies concerned may have engaged in practices such as price fixing.
 

Calcium Carbide Cartel Activity
Infringement Cartel activities
Parties Undisclosed parties
Product and markets Calcium carbide and magnesium powder
Proceedings
The European Commission has confirmed sending a Statement of Objections to a number of companies active in the supply of calcium carbide and magnesium powder, concerning their alleged participation in a cartel. The products under investigation are mainly bought by the steel and industrial gas industries.
 

Aluminium Fluoride Price Fixing
Infringement Price fixing and market sharing
Parties Fluorsid S.p.A., Minmet Financing Company S.A., Société des Industries Chimique du Fluor, Industrial Quimica de Mexico S.A. de C.V. and Q.B. Industrias S.A.B. de C.V.
Product and markets Worldwide market for aluminium fluoride
Proceedings
A total fine of €4,970,000 was imposed on the parties for agreeing worldwide target prices and dividing markets. Boliden Odda received full immunity for providing information on the cartel.
 

German Electricity Market Dominance
Infringement Abuse of dominance
Parties E.On
Product and markets German electricity market
Proceedings
The Commission is investigating two cases concerning E.ON's alleged behaviour on the German wholesale electricity market and the German balancing electricity markets (balancing energy is last-minute energy necessary to maintain the frequency of the current in the grid).
 

Gas Market Sharing
Infringement Market sharing
Parties E.On and Gaz de France
Product and markets French and German gas markets
Proceedings
The European Commission has sent a Statement of Objections to E.ON AG, E.ON Ruhrgas AG and Gaz de France, concerning their alleged agreement or concerted practice to keep out of each other's home market for the supply of gas, even after the liberalisation of the European gas markets.
 

Sodium Chlorate Paper Bleach
Infringement Market sharing and price fixing
Parties EKA Chemicals, Akzo Nobel, Finnish Chemicals, Erikem Luxembourg, Arkema France, Elf Aquitaine, Aragonesas Industrias y Energia and Uralita
Product and markets Sodium Chlorate (primarily used in to bleach paper products)
Fine  A total fine of €79,070,000
Proceedings
The European Commission has fined the parties a total of €79,070,000 following an application for immunity by EKA Chemicals and Akzo Nobel. As a result, EKA Chemicals and Akzo Nobel did not face a fine. Finnish Chemicals and Erikem had their fine reduced by 50% under the leniency provisions.
 

Tobacco Price Fixing
Infringement Price fixing
Parties Tobacco manufactures 'Imperial Tobacco' and 'Gallaher' plus eleven supermarket retailers.
Product and markets Tobacco products in the UK
Fine  
Proceedings
The OFT has issued a statement of objection alleging that certain tobacco manufacturers and retailers have engaged in unlawful practies in relation to retail prices for tobacco products in the UK.