Brussels, 19/09/2007 (Agence Europe) - On 19 September, the European Commission decided to impose fines of a total of €328,664,000 on YKK, Prym, Coats and four other companies, which operated cartels on the markets for fasteners and attaching machines in Europe and worldwide, in clear violation of EC Treaty rules that outlaw restrictive commercial practices. Wednesday's decision refers to five subsidiaries of the above-mentioned groups, together with the Scovill group, A. Raymond, Berning & Söhne and the German trade association Fachverband Verbindungs- und Befestigungstechnik (VBT), which also took part in one of the infringements. Fastenings such as zips are used, for example, in clothes and footwear, and industry. The Commission has found four separate cases of infringements. The Prym group received total immunity from fines under the Commission's leniency programme in respect of the worldwide cartels on the markets for other fastenings and attaching machines, as it was the first to provide information about this cartel. In addition, the fines imposed on this group for its involvement in other infringements discovered were also lowered as a result of the company's cooperation. Smaller reductions of the fines were also granted to the YKK and Coats groups to take account of their cooperation.
The Commission began the investigation on its own initiative after certain information had been brought to its attention. This led to surprise inspections in November 2001 at the premises of several Community producers of hard and soft haberdashery. In turn, these inspections triggered applications from the Prym, Coats and YKK groups for immunity or reduction of fines under the Commission's leniency programme.
The evidence uncovered in the inspections showed that the companies ran illegal cartels on the market for zip fasteners, other fasteners (e.g. snap buttons and rivets) and their attaching machines. This was further confirmed and complemented by numerous documents and statements provided by the companies which applied for leniency. The first cartel, which involved the YKK group, the Prym group, the Scovill group, A. Raymond, Berning & Söhne and the VBT, was in operation from 1991 to 2001 at least. During this period, the above-mentioned companies agreed, amongst other things, on coordinated price increases in annual “price rounds” with respect to 'other fasteners' and their attaching machines, in the framework of the work circles organised by the trade association VBT. The second cartel, involving the Prym group and the YKK group, was in operation from 1999 to 2003 at least. During this period, the two leading manufacturers of fastening products in Europe fixed prices on a product-by-product and country-by-country basis and allocated customers on a worldwide level with respect to 'other fasteners' and their attaching machines. The third cartel, which involved the YKK, Coats and Prym groups, was in place from April 1998 until November 1999 at least. During this period, the three leading manufacturers of zip fasteners met on a number of occasions to exchange price information and to discuss price increases. The three undertakings also agreed on a methodology to set minimum prices for zip fasteners in Europe. The fourth cartel, involving the Prym and Coats groups, is the longest infringement discovered by the Commission during its investigation: it lasted for more than 21 years, from 1977 to 1998 at least. During this period, the two companies agreed to share the whole haberdashery market between themselves. The Commission has evidence that in all four cartels, high-ranking management participated in regular meetings and discussions. There is also evidence that the companies were aware that their behaviour was illegal.
The fines imposed amount to €40,538,000 for the Prym group, €150,250,000 for the YKK group, €22,405,000 for the Coats group, €6,002,000 for the Scovill group, €8,325,000 for A. Raymond S.A.R.L., € 1,123,000 for Berning & Söhne GmbH & Co. KG, and € 1,000 for VBT. Even though the Commission has fined the companies in question, any person or firm affected by the anti-competitive behaviour as described in the decision taken by the Commission on Wednesday may bring the matter before the courts of the member states and seek damages. (ol)