Brussels, 01/10/2008 (Agence Europe) - On Wednesday 1 October, the European Commission imposed a total of €676,011,400 fines on 9 groups - ENI, ExxonMobil, Hansen & Rosenthal, Tudapetrol, MOL, Repsol, Sasol, RWE and Total - for participating in a cartel for paraffin wax in the European Economic Area (EEA) between 1992 and 2005. Shell also participated in the cartel but was not fined because it revealed the existence of the cartel to the Commission. The infringement committed by ExxonMobil, Sasol, Shell, RWE and Total also related to slack wax sold to end-customers on the German market. Slack wax is the raw material used to produce paraffin wax. All participants fixed prices for the products concerned. ExxonMobil, MOL, Repsol, Sasol, Shell and Total, in addition, allocated markets and customers for paraffin waxes.
“There is probably not a household or company in Europe that has not bought products affected by this 'paraffin mafia' cartel, with all that implies in terms of paying over the odds, higher costs and economic damage,” Competition Commissioner Neelie Kroes told press. Paraffin waxes are used in a wide variety of products such as candles, waxed paper, paper cups and plates, the wax coating on cheese, chemicals, tyres and car components as well as in the rubber, packaging, adhesive and chewing gum industries. Kroes estimated the value of the market at almost €500 million.
In the Shell group, the cartel was called “paraffin mafia” and in the Sasol group, “Blauer Salon” (“blue saloon”), after a hotel bar in Germany where the first meetings of the cartel took place. Subsequent meetings took place at a series of top hotels all over Europe, including Milan, Vienna, Budapest, Paris, Munich and Strasbourg. The cartel constituted a very serious infringement of EC Treaty antitrust rules, Kroes pointed out. In setting the fines (the fourth highest ever imposed by the Commission), the Commission took into account the respective affected sales of the companies involved as well as the combined market share and the geographical scope of the cartel agreements. Sasol's fine was increased by 50% because it was the leader of the cartel. The Commission increased the fines for ENI and Shell by 60% because they had already been fined for cartel activities in previous Commission decisions, but Shell was the first company to come forward with information about the cartel under the Commission's 2002 Leniency Notice and, therefore, received full immunity from fines. The Commission, acting under its leniency programme, also rewarded three groups for cooperating with the investigation. Sasol, Repsol and ExxonMobil were granted a reduction of their fines of 50%, 25% and 7% respectively.
In concrete terms, Shell has received a 100% reduction under the leniency programme (the €96 million fine has been written off) and will not have to pay anything. Sasol has been fined €318.2 million (including reduction), Repsol €19.8 million (including reduction), ExxonMobil €83.58 million (including reduction), ENI €29.12 million, Tudapetrol €12 million, Hansen & Rosenthal €24 million, MOL €23.7 million, RWE €37.44 million and Total €128.16 million.
The Commission points out that any person or company adversely affected by cartels can refer the case to member states' courts to seek damages. (O.L./transl.rt)