Brussels, 12/11/2008 (Agence Europe) -On Wednesday 12 November 2008, the Commission imposed fines of a total in excess of 1.3 billion € on producers of car glass for concluding agreements to divide up the markets. Asahi (Japan), Pilkington (United Kingdom), Saint-Gobain (France) and Soliver (Belgium) were found guilty of sharing "commercially lucrative and illegal" information at "meetings in airports and hotels in Frankfurt, Paris and Brussels", the Commissioner for Competition, Neelie Kroes, announced. The arrangement is believed to have existed from 1998 to 2003.
The unprecedented level of the fines is due, Ms Kroes explained, to the value of the market (estimated at two billion euros for the last year of the cartel), the seriousness of the case and the fact that Saint-Gobain was a repeat offender. "If you don't want to listen, you should feel", said the Commissioner, quoting a Dutch proverb.
At the time in question, the cartel members controlled 90% of the market for glass parts used in the windows of new cars, and spare parts. 14 million new cars are sold every year in the European Economic Area, the Commissioner told the Brussels press on Wednesday. As well as the division of the current market between them, she explained, the businesses in question are believed to have concluded agreements on the supply of glass for new and future models of car. An anonymous tip-off brought the matter to the Commission's attention, Ms Kroes stated.
Saint Gobain was fined 896 million euros for its five-year involvement in the cartel. This figure has been increased by 60% for its recidivism, the company having been fined for similar behaviour on the same market in Italy and Benelux in 1984 and in 1988. Pilkington was fined 370 million, having also participated in the cartel for five years, AGC Asahi was fined 113.5 million for four and a half years and Soliver 4.4 million for a year and a half. These are the highest fines the Commission has ever imposed in a cartel case, both to a single company (Saint Gobain) and to all of the members of the cartel as a body. The companies in question have the right to appeal against the Commission's decisions at the Court of First Instance.
Where does the money go? Ms Kroes then took pains to disabuse her audience of the notion that the money raised by fines against sanctions will swell the coffers of the Commission. "No way. It is going to the EU budget. So every euro gathered (in fines: Ed) is one euro less that the Member States have to contribute", the Commissioner said, stressing that this represents a saving for the European taxpayer. She acknowledged that a few months ago, she expressed her "wish" to put a proportion of the fine money towards the resources available to fight cartels within DG Competition, but this position " was rejected by those who are taking this decision". Ms Kroes added that consumers who have been personally affected by increased prices resulting from this cartel might not take much comfort from the fine, and referred to the White Paper of the Commission on individual actions against cartels, which is currently on the table of the Parliament (EUROPE 9365). (C.D. / trans.fl)