(BRUSSELS) - A European court on Thursday annulled 85 million euros (121 million dollars) of fines on eight Italian companies for restrictive practices in the sector of steel reinforcing bars for construction work.

The European Court of First Instance in Luxembourg ruled that the European Commission "lacked competence to establish an infringement".

It said the European Coal and Steel Community treaty, which the EU's executive arm argued had been breached, was in fact no longer in force as subsequent European treaties had established "a new legal order".

The court, in a statement declared the Commission decision "to be unlawful and annuls it".

In 2002 the Commission concluded that the Italian companies had, from 1989-2 000, "a single, complex and continuous restrictive practice on the Italian market for concrete reinforcing bars" to fix prices and control output and sales.

The enterprises concerned were Riva Acciaio, Lucchini and Siderpotenza, Feralpi Siderurgica, Valsabbia Investimenti and Ferriera Valsabbia, Alfa Acciai, Leali and Acciairie e Ferriere Leali Luidi, IRO Industrie Riunite Odolesi and Ferriere Nord.

Judgments of the Court of First Instance in cases T-27/03, T-46/03, T-58/03, T-59/03, T-80/03, T-97/03 et T-98/03
SP / Commission - Court of Justice press release (pdf)

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