BRUSSELS (Thomson Financial) - The European Commission said it has fined
Arkema France, Elf Aquitaine, Finnish Chemicals, Erikem Luxembourg, Aragonesas
Industrias y Energia and Uralita a total of 79.07 million euros for cartel
activity in the sodium chlorate market.
Between late 1994 and 2000, the commission said the companies "fixed prices
and allocated markets through a series of meetings and other illicit contacts"
for sodium chlorate, an oxidizing agent used mainly for bleaching in the pulp
and paper industry.
Arkema and Elf Aquitaine were jointly fined 59.02 million euros, while
Aragonesas and Uralita were jointly fined 9.90 million.
Finnish Chemicals' and holding company Erikem Luxembourg's fine of 20.30
million euros was reduced by 50 percent to 10.15 million because it co-operated
with the investigation.
Akzo Nobel and its unit EKA Chemicals, originally fined 116.00 million
euros, received full immunity under commission rules by acting as cartel
whistleblowers.
The fine imposed on Arkema France was increased by 90 percent, as the
company is a repeat offender, having been condemned for three previous cartels
before this one in the plastics industry -- Peroxygen products in 1984,
Polypropylene in 1986 and PVC in 1994.
It is the first time under the commission's rules from 2006 that the
European Union executive increased the fine for a company because of its
previous involvement in three cartels.
EU competition commissioner Neelie Kroes said: "These companies have to
learn the hard way that the Commission will impose high fines when they rip off
their customers, and ultimately consumers, by forming a cartel."
The commission's investigation was triggered by an application for immunity
lodged by EKA Chemicals in March 2003. Finnish Chemicals also made an
application under the leniency programme.
simon.zekaria@thomsonreuters.com
sz/am
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