Luxembourg, 14/12/2007 (Agence Europe) - On 12 December, the Court of First Instance reviewed two fines imposed by the Commission on members of a cartel in the choline chloride market. Belgian manufacturer UCB had its fine reduced by 90%, but BASF of Germany saw its fine increased, after consideration by the Court of the extent of its cooperation with the European Commission investigation. This is the first time that the Court has increased a fine imposed by the Commission.
The Court noted two separate cartels on the choline chloride market (vitamin B4 used in animal feed): the first between European and US producers, between 1992 and 1994, and the second among European producers only, between 1994 and 1999. German group BASF cooperated with the investigation, but provided information only on the transatlantic cartel. The Court, therefore, did not allow any reduction in that part of the fine referring to its participation in the European cartel, which means a €54,000 increase on the original fine imposed by the Commission. However, the Court felt that the information given by UCB of Belgium was essential to the Commission investigation on the European market, and reduced its fine by 90% to €1.87 million (cases T-101/05 and T-111/05). In a separate but related judgment, delivered the same day, the Court decided that Dutch group Akzo Nobel was responsible for the actions of its five subsidiaries involved in the cartel. With these subsidiaries all being wholly owned by the parent company, unless there is proof to the contrary, their actions can be presumed to be decisively influenced by the parent company. Akzo was unable to provide this proof. Possible sanctions could amount, therefore, to 10% of the turnover of the parent company - that is, the whole company - and not 10% of the turnover of the subsidiaries involved in the cartel. The Court rejected Akzo Nobel's appeal and confirmed the total fine imposed on the group (€20.99 million) (case T-211/05). The Court of First Instance is empowered to review the amounts of fines imposed by the Commission by virtue of Article 229 of the EC Treaty. (C.D.)