Brussels, 20/07/2010 (Agence Europe) - On Tuesday 20 July, the European Commission decided to impose fines totalling €175.647 million on animal feed phosphates producers for operating a cartel that lasted over three decades and covered a large part of the European Economic Area (EEA). All but one company settled the case with the Commission and therefore each received a 10% reduction of their fine. Animal feed phosphates are chemical compounds used in feed for animals such as cattle, pigs, poultry, fish and pets.
The Commission was informed for the first time in 2004 of the existence of the cartel by Kemira, one of the participants that applied for leniency. The cartel, which had existed since 1969, meant that its members shared the market covering most of the EU, and subsequently also a great part of the EEA territory, with price-fixing of phosphates. To this end, they allocated market shares, feed phosphates sales quotas and customers among themselves, and coordinated prices and sales conditions when necessary. Such coordination is by its very nature one of the most serious violations of Article 101 of the Treaty on the Functioning of the EU.
The cartel arrangements, known as the “Club”, CEPA (Centre d'Etude des Phosphates Alimentaires) or later Super CEPA, proved to be resilient and able to adapt to different industry and market conditions over the years. Throughout the whole period, the undertakings had frequent contacts and met regularly to coordinate through price monitoring and market sharing agreements at both European and country levels.
The French enterprises, Timab Industries S.A. and Compagnie financière et de participation Roullier (CFPR), had the largest fine imposed on them: €59.85 million. (L.C./transl.jl)