Brussels, 13/09/2006 (Agence Europe) - The Commission has fined 14 road bitumen companies in the Netherlands a total of 266.717 million EUR for having taken part in a price-fixing cartel, a restrictive practice which runs counter to article 81 of the Treaty. Between 1994 and 2002, eight suppliers and six buyers of road bitumen in the Netherlands set the gross price for all bitumen sold in the Netherlands and agreed on uniform minimum rebates in favour of the construction companies which were in on the cartel, and a smaller maximum rebate for all the other road construction companies. This seventh highest collective fine ever imposed by the Commission on a cartel is due to the length of time for which the infringement continued, the number of companies involved and the fact that some of them were repeat offenders. The agreement covered all bitumen used in road construction in the Netherlands, a market estimated at some 62 million EUR in 2002. Bitumen, which is a by-product of fuel production, is mainly used in the production of asphalt, binding other road surfacing materials together.
Informed of the situation in 2002, the Commission carried out an investigation, which showed that the six largest road builders in the Netherlands were attending so-called "bitumen consultation" meetings, which were preceded by preparatory meetings between the suppliers on the one hand, and between the six largest road building companies on the other. Those taking part set the gross price for road bitumen to the invoiced to the asphalt production plants and two rebates for the construction companies that own these asphalt production plants. The road building companies which were not part of the cartel did not enjoy the same rebate and, therefore, paid higher prices. The level of bitumen prices in the Netherlands thus gradually rose to exceed that of its neighbour countries, even taking account of the rebates paid to the large road construction companies.
Due to its participation in a cartel for polypropylene and PVC, and for its role as leader and instigator in this affair, Shell's fine was increased to 108 million EUR. For having hindered the investigation, denying Commission inspectors access to its premises, KWS also saw its fine increased, to 27.36 million. The other fines, some of which have been reduced, are: Esha (11.5 million), Klöckner Bitumen (10 million), Kuwait Petroleum (16.632), Nynäs (13.5), Total (20.25), Wintershall (11.625) for the bitumen suppliers, and Ballast Nedam (4.65), Dura Vermeer (5.4), Heijmans (17.1), Hollandsche Beton Groep (7.2), Koninklijke BAM (13.5) for the bitumen buyers. Having brought the affair to the light of the Commission, BP enjoyed a total exemption, escaping a fine of 30.78 million EUR.