EU regulators hit rubber cartel with EUR 243 million in fines

(BRUSSELS) - EU antitrust regulators said Wednesday they had fined chemical groups DuPont, Dow, Denka, ENI and Tosoh a combined 243 million euros (358 million dollars) for running an illegal cartel in the rubber market.

The European Commission accused the companies of fixing prices and carving up the market for chloroprene rubber, used in products ranging from condoms to shoe soles and adhesives.

German chemicals group Bayer also participated in the cartel, which ran from 1993 to 2002, and would have been fined 201 million euros for its role had it not blown the whistle.

"It is particularly disappointing that the rubber industry has still not learned its lessons about avoiding cartels," said EU Competition Commissioner Neelie Kroes, who has made a crackdown on cartels a top priority.

"I find it very difficult to understand how shareholders and board members can tolerate such illegal behaviour," she added.

With a penalty of 132 million euros, Italian energy group ENI received by far the biggest fine, which was raised by 60 percent because the company is a repeat offender.

US group DuPont received the second biggest fine with 59 million euros in penalties, followed by Dow with 49 million euros, Denka with 47 million euros and Tosoh with 4.8 million euros.

The rubber cartel brought the total amount of fines the Commission has imposed on such illegal clubs this year to more than 3.3 billion euros, making 2007 a bumper year.