EU court ups BSAF anti-trust penalty
The EU court increased an antitrust fine against German chemicals giant BASF which was initially imposed by the European Commission in 2004 for operating an illegal vitamin cartel.
The court reduced a fine imposed on Belgium's UCB in the same case, from €10.38 million ($15.26 million) to €1.87 million ($2.75 million). The Commission, the 27-nation bloc's executive body, imposed fines on BASF, UCB and a third company Akzo Nobel of the Netherlands for price-fixing, market-sharing and concerted actions against competitors in the sector of choline chloride, or vitamin B4 used, which is used in animal feed.
BASF and UCB later appealed to the European Court of First Instance, which has the power to review antitrust decisions by the Commission. The EU court upheld an argument by BASF and UCB that there were two different cartels.
One was global and also involved four North American producers, who escaped fines because the statute of limitations on their actions had expired. The global cartel lasted between 1992 and 1994. The other was a European cartel formed by BASF, UCB and Akzo Nobel, and this lasted from 1994 to 1998. As a result, the court annulled the Commission's decision and ruled that the fines should be confined to the European cartel.
BASF had its fine increased because an earlier penalty reduction granted after it cooperated with the Commission on the global cartel was discounted in the appeal case, and the information the firm gave on the European cartel “was only of minimum value.” In view of the fact that UCB reported the European cartel, which enabled the Commission to impose significant fines, the court re-evaluated UCB's cooperation, granting the reduction. (Xinhua)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.