The European Commission has imposed a record fine of over €1.3 billion on four car glass producers for their role in a market sharing cartel. One of the companies involved, Saint-Gobain, was fined €896 million – this is the largest cartel fine ever imposed by the Commission on an individual company and smashes its previous record penalty.
The Commission found that, between 1998 and 2003, Asahi, Pilkington and Saint-Gobain (Europe's three major players in this industry) had discussed prices, shared markets, allocated customers and exchanged commercially sensitive information - each of these in itself represents a very serious breach of competition law. The fourth producer, Soliver, also took part in some of the illicit contacts.
Saint-Gobain's fine was increased by 60% because it was a previous offender (having been caught on two previous occasions) whereas Asahi's fine was reduced by 50% due to its cooperation under the Commission's leniency regime. As the Commission commenced the investigation on its own initiative following an anonymous tip off, this was the maximum level of discount which was available to the "first to confess".
In its press release, the Commission has made its position very clear – "If you cheat, you will get a heavy fine". In this case, "heavy" is perhaps a bit of an understatement!
Yesterday's announcement simply reaffirms that the Commission and national competition authorities are continuing to crack down on cartels which they see as the most serious form of anti-competitive conduct. It also continues the recent trend of escalating cartel fines in the EU and UK and, as penalties reach unprecedented levels, leniency becomes increasingly critical.
MacRoberts has extensive experience in dealing with cartel investigations and leniency applications. Immediate specialist help is imperative when dealing with the European Commission or Office of Fair Trading to ensure that your interests are fully protected. We also offer full competition law training, compliance and audit services.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
