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.

 

Cereals and Other Agricultural Products
Infringement Restrictive business practices
Parties Undisclosed
Product and markets Trade and distribution of cereals and other agricultural products for human consumption and animal feed in two Member States
Proceedings The European Commission announced on 10th July that dawn raids were carried out at traders and distributors in two member states.
 

 

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.
 

Marine Hoses
Infringement Cartel activities
Parties Undisclosed
Product and markets Marine hoses used to transport crude oil and petroleum products, for example for loading and undloading tanker ships.
Fine  
Proceedings
Following inspections in May 2007, the Commission now confirms sending Statements of Objection to alleged participants in the cartel.
 

Payment Card Transactions
Infringement Restrictive business practices
Parties Visa Europe Limited
Product and markets Cross border consumer payment card transactions
Fine  
Proceedings
On 26 March 2008 the Commission announced the initiation of formal proceedings against Visa for a suspected breach of Article 81 for multilateral interchange fees for cross border transactions.
 
The Commission has said that it is also investigating Visa's honour-all-cards rule which obliges merchants to accept all valid Visa branded cards.
 

International Airline Passenger Carriers
Infringement Restrictive business practices
Parties Undisclosed
Product and markets International airline passenger sector
Fine  
Proceedings On 11 March 2008 the European Commission confirmed carrying out unannounced inspections at the headquarters of a number of international airline passenger carriers.
 

International Removal Services
Infringement Cartel
Parties Allied Arthur Pierre, Compas, Coppens, Gosselin, Interdean, Mozer, Putters, Team Relocations, Transworld and Ziegler Allied Arthur Pierre, Compas, Coppens, Gosselin, Interdean, Mozer, Putters, Team Relocations, Transworld and Ziegler
Product and markets Aluminium, engineered products and packaging.
Fine  €32.7 million
Proceedings On 11 March 2008 the European Commission fined the parties a total of €32.7 million for price fixing between 1984 and 2003. Allied Arthur Pierre's fine was reduced by 50% under the leniency provisions. Interdean had its fine reduced by 70% based on inability to pay and other factors.  
 

Alcan
Infringement Abuse of a dominant position.
Parties Alcan
Product and markets Aluminium, engineered products and packaging.
Fine  
Proceedings The European Commission confirmed sending a statement of objections to Alcan on 21 February 2008.
 

Central Processing Unit and PC Sector
Infringement Restrictive business practices and/ or abuse of a dominant position.
Parties Intel together with several computer retailers.
Product and markets Computer chip manufacturing and retail of personal computers.
Fine  
Proceedings The European Commission conducted dawn raids at the premises of a manufacturer of CPUs and a number of personal computer retailers on 12 February 2008.
 

Ship Classification Services
Infringement Cartel
Parties Undisclosed
Product and markets Ship classification services.
Fine  
Proceedings The European Commission conducted dawn raids at the premises of several providers of ship classification services on 30 January 2008.
 

Synthetic Rubber Producers
Infringement Cartel
Parties Bayer and Zeon
Product and markets Producers of Nitrile Butadiene Rubber which is predominantly used in the motor industry.
Fine  €34.2 million
Proceedings The European Commission fined the producers a total of €34.2 for price fixing between 2002 and 2002.  Bayer's and Zeon's fines were reduced by 30% and 20% respectively under the leniency procedure, however Bayer's fine was increased by 50% due to a previous cartel infringement.
 

 

Air Freight Services
Infringement Cartel
Parties Undisclosed
Product and markets Air freight services.
Fine  
Proceedings On 21 December the European Commission confirmed sending a statement of objections to a number of companies concerning their involvement in a cartel in the provision of air freight services.
 

Choline Chloride
Infringement Cartel
Parties BASF, UCB and Akzo Nobel
Product and markets Choline chloride- used as an additive in animal feed (vitamin B4).
Fine  €57.844 million
Proceedings Following the decision by the European Commission in December 2004 to impose a fine of 66.3 million on the 3 parties, the CFI handed down its judgment in the appeal on 12 December 2007.  BASF's fine was increased from €34.97million to €35.024 million for repeat infringement while UCB's fine was reduced from €10.38 million to €1.87 million under the 1996 Leniency Notice.  Akzo Nobel's appeal was dismissed.
 

Marine Hoses
Infringement Price fixing
Parties Bryan Allison and David Brammer, employees of Dunlop Oil & Marine, and Peter Whittle, anindependent consultant.
Product and markets Marine hoses used to transfer oil between tankers and storage facilities.
Fine  
Proceedings The three men pleaded guitly to price fixing at a court hearing in Texas on 12 December 2007, and have accepted sentences ranging between 20 and 30 months.  They also promised to plead guilty to similar charges in London, which will allow any time they spend in a UK prison to count against their US sentences.  This will be the first price fixing prosecution in the UK.
 

Chloroprene Rubber
Infringement Cartel
Parties Bayer, Denka, DuPont, Dow, ENI and Tosoh
Product and markets Producers of chloroprene rubber, a product mainly used in the production of hoses, v-belts and power transmission belts.  It is also used as an adhesive in the shoe and furniture industry.
Fine  €243.2 million
Proceedings The European Commission fined the producers on 5 December for market sharing and price fixing in the EEA between 1993 and 2002.
 

Exotic Fruits
Infringement Cartel
Parties Undisclosed
Product and markets Producers and importers of fresh exotic fruits.
Fine  
Proceedings The European Commission carried out unannounced inspections at various importers and producers of fresh exotic fruits between 28 and 30 November 2007.
 

Flat Glass Producers
Infringement Cartel
Parties Asahi, Guardian, Pilkington and Saint-Gobain
Product and markets Producers of flat glass used for windows, glass doors and mirrors.
Fine  €486.9 million
Proceedings The European Commission fined the producers on 28 November for co-ordinating price increases and other commercial deliveries of flat glass between 2004 and 2005.
 

Professional Videotape Producers
Infringement Cartel
Parties Sony, Fuji and Maxell
Product and markets Producers of professional videotapes.  Professional videotapes are mainly sold to TV stations and independent producers of TV programmes and advertising films.
Fine  €74,790,000
Proceedings Following an investigation which began in May 2002, the European Commission fined the three professional videotape producers for price fixing on 20 November.
 

Cathode Ray Tubes
Infringement  Cartel
Parties  Undisclosed
Product and markets Manufacturers of cathode ray tubes.
Fine  
Proceedings European Commission officials carried out dawn raids at the premises of manufacturers of cathode ray tubes on 8 November.
 

International Freight Forwarding Sector
Infringement  Cartel
Parties  Undisclosed
Product and markets Freight forwarding, which involves the organisation of transportation of item as well as related activities such as customs clearance, warehousing and ground services.
Fine  
Proceedings The European Commission carried out unannounced inspections at the premises of various providers of international freight forwarding services on 10 October.
 

Bitumen Cartel
Infringement  Cartel
Parties  BP, Repsol, Cepsa, Nynäs and Galp
Product and markets Suppliers of bitumen in Spain
Fine  €183 million
Proceedings The European Commission imposed fines on the bitumen suppliers on 3 October 2007 for market sharing and price coordination.
 

Qualcomm
Infringement Abuse of Dominance
Parties Qualcomm Incorporated
Product and markets Chipset manufacturer holding intellectual property rights in the CDMA and WCDMA standards for moblie telephones.  The WCDMA standard forms part of the 3G standard for European moblie phone technology.
Fine  
Proceedings The European Commission initiated formal proceedings against Qualcomm on 1 October 2007.
 

Dairy Products
Infringement  Price fixing
Parties  Asda, Morrisons, Safeway, Sainsbury, Tesco, Arla, Dairy Crest, Lactalis McLelland, The Cheese Company and Wiseman.
Product and markets Milk, butter, cheese
Fine  
Proceedings The OFT issued a statement of objections on 20 September 2007. On 7 December 2007 the OFT announced that it had concluded early resolution agreements with Asda, Sainsbury, Safeway, Dairy Crest, The Cheese Company and Wiseman.  The OFT issued a statement of objections to Morrisons on 13 December 2007.  On 15 February 2008 the OFT reached a settlement with Lactalis McLelland, whereby the combined maximum financial penalty is now £120 million.  The Tesco and Morrisons investigations are ongoing. 
 

 

Fasteners Cartel
Infringement  Cartel
Parties  YKK, Prym, Coats, Scovill, A Raymond SARL, Berning & Sohne & Co, Fachverband Verbindungs- und Befestigungstechnik.
Product and markets Fasteners and attaching machines in Europe and worldwide
Fine  
Proceedings Infringement decisions by the Commission on 19 September 2007.
 

The sodium chlorate cartel
Infringement  Cartel
Parties  Undisclosed
Product and markets Sodium chlorate, used mainly as a bleaching agent in the pulp and paper industry.
Fine  
Proceedings The European Commission confirmed sending a Statement of Objections to a number of companies in the market on 2 August 2007.
 

Rambus
Infringement  Abuse of dominance
Parties Rambus 
Product and markets Dynamic Random Access Memory chips (DRAM) used primarily in computer systems for the temporary storage of data.
Fine  
Proceedings The European Commission sent a Statement of Objections to Rambus on 30 July 2007.
 

Natural gas
Infringement  Concerted practices relating to market sharing
Parties  E.On, Gaz de France
Product and markets Supply of natural gas along a pipeline, jointly owned by the parties, transporting gas across Southern Germany.
Fine  
Proceedings The European Commission confirmed initiating proceedings against the parties on 30 July 2007.
 

The banana cartel
Infringement  Cartel
Parties  Undisclosed
Product and markets The banana import market.
Fine  
Proceedings The European Commission confirmed sending a Statement of Objections to a number of banana importers on 27 July 2007.
 

Intel
Infringement  Abuse of dominance
Parties  Intel
Product and markets Central processing units (CPUs) used in the manufacture of computers.
Fine  
Proceedings The European Commission confirmed carrying sending a Statement of Objections to Intel on 26 July 2007.
 

Telefónica
Infringement  Abuse of Dominance
Parties  Telefónica

Product and markets

The Spanish broadband market.
Fine  €152 million.
Proceedings Infringement decision by the European Commission on 4 July 2007.
 

The hardware cartel
Infringement  Cartel
Parties  Undisclosed
Product and markets The hardware sector for windows and doors which is the metal equipment used for the fastening, handling and locking of windows and doors, including bolts, handles, locks and hinges.
Fine  
Proceedings The European Commission confirmed carrying out dawn raids on 3-4 July 2007.