Brussels, 12/11/2009 (Agence Europe) - In a judgment delivered on Thursday 11 November, the Court of Justice of the European Communities upheld the Commission decision in 2003 to impose fines on French company Le Carbone-Lorraine (€43.05 million) and a number of German Companies, including SGL Carbon (€23.64 million) for participating in a cartel on the market for carbon and graphite products. This judgment upholds a similar ruling by the Court of First Instance in October 2008, to which several of the companies involved had appealed against the Commission's decision.
Thursday's decision was based principally on analysis of the Court of First Instance ruling. Contrary to the arguments put forward by Le Carbone-Lorraine and SGL Carbon, the Court took the view that the Court of First Instance had not erred either in its reasoning or its conclusions. It was felt that the conduct of Le Carbone-Lorraine in the cartel had duly been taken into account (the company believed that its role merited a reduction in the fine imposed). Possibilities for clemency in the return for the cooperation of the French company had also been properly considered, the Court said. SGL Carbon wanted to challenge the Commission's calculation of the fines, particularly with regard to the value of cartel members' “internal” consumption in the calculation of their turnovers and market shares. The Court noted that this argument had only been advanced during the statements to the Court of First Instance: to be admissible, it should have been articulated by SGL Carbon at a much earlier point in the proceedings, or even when the Commission's decision was announced.
Between 1988 and 1999, the companies concerned worked together to fix, either directly or indirectly, sales prices and other trading conditions applicable to customers, shared markets, in particular by allocating customers, and engaged in coordinated action (quantity restrictions, price increases and boycotts) against those companies which were not members of the cartel, which controlled over 90% of the market in the European Economic Area.
Carbon and graphite products are used in electrical and mechanical goods. They allow for the transfer of electricity to, and in, electrical motors in all kinds of industrial products and everyday consumer items.
By judgments of 8 October 2008, the Court of First Instance dismissed the actions brought by four of the companies concerned, including Le Carbone-Lorraine and SGL Carbon. These two companies then appealed to the Court of Justice to have the Court of First Instance rulings overturned and/or have the fines imposed on them reduced. (C.D./transl.rt)