Brussels, 28/06/2006 (Agence Europe) - On Wednesday, the Commission decided to impose heavier fines on companies that infringe EU Treaty rules to outlaw cartels. By proposing new guidelines for evaluating the amount of fines to be imposed in the event of restrictive business practices (Article 81) or abuse of a dominant position (Article 82), the Commission brings clarity to the current framework (dating back to 1998) that it wants to make more of a deterrent. The new guidelines will be applied as soon as they appear in the Official Journal within the next two months. Competition Commissioner Neelie Kroes said: “The three main changes - the new entry fee, the link between the fine and the duration of the infringement, and the increase for repeat offenders - send three clear signals to companies: Don't break the anti-trust rules. If you do, stop it as quickly as possible, and once you've stopped, don't do it again.” Recalling that the amount of fines depends on several factors specific to each affair, the spokesman for Ms Kroes said on Wednesday that it was difficult to foresee the impact of these revised guidelines, but that the companies which have been in breach of the rules for a long time on a major market should receive fines that are very much higher than in the past.
From now on, fines will be based on a percentage of the annual turnover made in the sector of activity of the company concerned by the infringement. They may be up to 30% of sales and the amount multiplied by the number of years during which there was infringement (still within the maximum limit of 10% of the total annual corporate turnover). The Commission may also add to the amount as calculated above a sum equal to 15% to 25% of the yearly relevant sales, whatever the duration of the infringement. According to the new guidelines, such an “entry fee” will be applied in cartel cases, in particular. Finally, the new guidelines also bring in changes concerning repeat offenders, for which the Commission increases fines by 50%: (a) fines may now be increased 100%; (b) any earlier infringement will entail a heavier fine; and (c) the Commission will take into account not only its earlier decisions but also those taken by national competition authorities.