CEMENT INDUSTRY : COURT CONFIRMS SEVERITY OF CARTELS.

The EU's authorities clearly remain resolute in showing that company cartels risk severe punishments, as demonstrated by two rulings handed down, on 8 July, by the EU's Court of First Instance (CFI).

In the first ruling (Cases T-50/03, T-52/03, T-53/03, T-54/03), the CFI confirms the existence and duration of a cartel in the plasterboard sector which had been condemned by the European Commission to pay fines for a total of 478.32 million. The companies in question were found to have exchanged information on sales volumes, coordinated price increases and held meetings in view of dividing or stabilising the market between 1992 and 1998. The Commission had imposed different fines in accordance with the size and involvement of companies: 138.6 million for BPB (UK); 85.8 million for Knauf (Germany); 249.6 million for Lafarge (France) and 4.32 million for Gyproc (Belgium). These companies then lodged an appeal with the CFI, asking for the reduction or cancellation of these fines.

The CFI confirmed the fines, except for BPB, whose fine it reduced by 10% to 118.8 million. It believes that the reduction granted by the Commission (30%) for the company's cooperation in the investigation was not sufficient. According to the Court, "BPB was in fact the first participant in the anti-competitive practice to disclose, after the Commission's request for information but in a way that went beyond what was requested, detailed information about certain meetings between the four undertakings".

The Commission spokesperson welcomed this ruling, noting that the CFI had only reduced the total fines by 4%, and confirmed the other 96%.

CONSULTANCY CONDEMNED

The other ruling is, to a certain extent, a first. It confirms that a consultancy firm which contributed to the implementation of a cartel can also be fined for complicity, even if it is not present in the market concerned (Case T-99/04).

In December 2003, the Commission discovered a cartel which had lasted for 28 years. It was operated by three producers of organic peroxides, aiming to preserve the market shares of the producers concerned and to coordinate their price increases. In its...