Brussels, 09/09/2011 (Agence Europe) - On Friday 9 September, the General Court of the EU confirmed in two rulings (T-12/06 and T-25/06) the fines of €30 million and €24 million imposed in 2005 by the Commission on the Italian company, Deltafina, and the US company, Allied One International, respectively. The fines were for their participation in price-fixing and market-sharing on the Italian market for raw tobacco between 1995 and 2002 (see EUROPE 9053).
Although at the time Deltafina was the first company to have revealed the existence of concerted practices, it had been refused total immunity from fines conceded under the leniency programme decided by the Commission in 2002 (cooperation by companies in investigation into concerted practices). That was because it had informed its competitors voluntarily, and without informing the Commission, that it had introduced a request for immunity before the Commission had in fact carried out verifications on the concerted practices in question. As it had indeed collaborated, however, the Commission had reduced the fine on Deltafina by 50%, condemning it to a payment of €30 million jointly with its parent company, Universal Corp. This was the first time that immunity had been refused within the leniency programme and Deltafina therefore challenged the legality of such a decision.
In its ruling, the General Court points out that total immunity of fines is an exception to the principle of the company's personal responsibility for the violation of competition rules and it is “logical” that, in exchange, the company should cooperate with the Commission and that cooperation should be total, permanent and rapid. In order to enjoy such immunity, the company concerned is therefore under an obligation to inform the Commission of all relevant facts that come to its notice and that could affect the inquiry. This was not the case for Deltafina which violated its cooperation obligation by informing its rivals of its intentions without informing the Commission. Furthermore, the General Court notes that, before the final decision was adopted, the Commission could not guarantee that Deltafina would receive definitive immunity. Regarding the proportionality of the fine, the General Court considered that the fine imposed on Deltafina was not disproportionate compared to the gravity of the infringement and the other circumstances of the affair.
On the subject of Alliance One International, formed from the merger between Dimon Inc. and Standard Commercial Corp. (SCC), former parent companies of two other companies that took part at the time in the same cartel - Dimon Italia (later renamed Mindo) and Transcatab respectively - the General Court essentially based its arguments on the case law established by the Court concerning the responsibility of parent companies that hold all the capital of the subsidiary taking part in the cartel.
The Commission welcomes these two judgements which, it states, confirm its position on major EU principles of law and competition, such as the obligation on those requesting immunity within the framework of the Commission's leniency policy, and the responsibility of parent companies. (F.G./transl.jl)