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Europe Daily Bulletin No. 8554
Contents Publication in full By article 16 / 39
GENERAL NEWS / (eu) eu/cartel

Commission fines sorbates cartel

Brussels, 01/10/2003 (Agence Europe) - The European Commission has fined four companies in sorbates cartel a total of 138.4 EUR million. Sorbates are used to prevent the development of moulds, bacteria and other micro-organisms in foods. They are also used for the coating of cheese wrapping paper or in cosmetics. Following a careful investigation begun in 1998, the Commission demonstrated that beyond any doubt, that between the end of December 1978 and 31 October 1996 (30 November 1995 for Nippon) five companies operated a cartel by which they agreed prices and allocated volume quotas for each other. Consequently, European consumers paid more for many everyday product than if the companies had competed against each other. The Commission has therefore decided to imposed fines on the participants of: (in € million); Hoechst AG, Germany: 99; Daicel Chemical Industries, Ltd, Japan: 16.6; Ueno Fine Chemicals Industry, Ltd, Japan: 12.3; The Nippon Synthetic Chemical Industry Co, Ltd, Japan: 10.5. Chisso, which testified under the Commission's Leniency policy, obtained full immunity from the fines. It is the fourth time that the Commission has granted total immunity from fines to a company for having revealed the existence of a cartel. This infringement is more serious in 1995, when these companies jointly controlled 85% of the market in the EEE. Until it transferred its sorbates business to Nutrinova in 1997, Hoechst was the largest producer of sorbic acid the main type of sorbates followed by Daicel. Hoechst was imposed the highest fine because of its overall size as well as its share of the relevant market and the fact that it had committed a similar violation in the past. However, the final amount for Hoechst also includes a 50% reduction for co-operating in the investigation. Commissioner Mario Monti said. "I am determined that participation in a cartel should not pay. The only way for companies to avoid high fines is to come clean and stop participating in cartels whose only purpose is to extort from unknowing consumers, be they intermediate or final, illicit profits”.

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