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22 November 2009
Breaking News:

Big fines for vitamins cartel 

Published: Thursday 22 November 2001   

The Commission imposed a record fine of more than 855 million euros on 8 pharmaceutical companies for illegal cartel agreements on vitamins.

Background:


A cartel is an agreement on prices whereby companies fix price levels jointly so that consumers are unable to take advantage of competition between suppliers to obtain competitive prices. After having started an investigation into price-fixing practices in the vitamins sector in 1999, the Commission sent statements of objections to 13 bulk vitamin producers on suspicion of a price-fixing cartel in this sector.

 

Other related news:


The eight pharmaceutical companies were found guilty of having made agreements on the price of vitamins that are being used in a wide range of products (foods, cosmetics and pharmaceuticals). The largest fines were imposed on Swiss group Roche (462 million euros) and German BASF (296 million euros). Both companies were according to the Commission's competition authorities at the origin of the cartel. Two years ago, both companies were already convicted in the US for these practices.

French group Aventis (at the time of the facts Rhône-Poulenc) was also involved in the cartel , but was granted full immunity because it helped the Commission with decisive information.

 

Positions:


Competition CommissionerMario Montisaid that the case was "the most damaging series of cartels the commission has ever investigated".

Rocheis reviewing the European Commission’s decision in order to decide on a possible appeal against the sentence. In a reaction, Roche underlines, that it cooperated with the EU's investigation. It also set up a special world-wide Corporate Training Programme named “Behaviour in Business” "to reinforce its commitment to conducting business in full compliance with all local and international laws".

BASFsaid that it "did not expect such a fine in this amount and ... that it is inappropriately high". The company also underlined that it has taken "measures to rule out violation of antitrust laws in future", amongst them a "Group-wide Compliance Program based on BASF's Values and Principles". BASF might also consider an apeal before the Court.

 

Next steps:


The companies have a two-month legal time limit to apeal before the European Court of First Instance in Luxembourg.

 

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