On Sept. 3, 2014, the European Commission (Commission) announced fines totaling €138 (US$ 174 million) on Infineon, Samsung, Renesas and Philips for breaching Article 101 of the Treaty on the Functioning of the European Union (TFEU) by coordinating their market behavior in the smart card chips sector. The Commission found that, between September 2003 and September 2005, the cartel had exchanged commercially sensitive information on pricing, customers, contract negotiations, production capacity and future market conduct. The cartel was found to have operated across the European Economic Area (EEA).
The Commission had previously entered into settlement negotiations with the cartel participants pursuant to the Commission's 2008 Settlement Notice. However, this process was discontinued in 2012 following a lack of progress in settlement discussions.
As "whistleblower," Renesas received full immunity under the Commission's 2006 Leniency Notice, having notified the Commission of the cartel. Samsung's fine was reduced by 30 percent for cooperating with the investigation. Since the infringement, Philips has divested its smart card chips business but remains liable for its conduct during the period of the infringement.
The Commission's press release announcing the fine is available here.
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