EU launches cartel action against banana importers

(BRUSSELS) - EU competition enforcers on Thursday accused southern European fruit importers of operating an illegal banana cartel, two days after striking an historic deal with Latin American producers.

"The European Commission can confirm that in December 2009 it has sent a statement of objections under EU antitrust rules to a number of companies active in the import and marketing of bananas," said a Brussels statement.

The action concerns "their alleged participation in a cartel" in violation of EU rules on "restrictive business practices."

The move follows surprise inspections carried out by the commission in the region just over two years ago, although the identities of the companies involved were not revealed.

In October 2008, the commission issued a 60.3-million-euro (86.5-million-dollar) fine to US banana importer Dole and German counterpart Weichert for fixing markets illegally with American giant Chiquita.

The latter avoided a fine because it cooperated with the commission, but the cartel was found to have fixed prices between 2000 and 2002 in Austria, Belgium, Denmark, Finland, Germany, Luxembourg, the Netherlands and Sweden.

Latin American nations and the European Union on Tuesday reached a deal aimed at ending a bruising 16-year dispute over banana tariffs.

Under the deal, the EU agreed to a seven-year programme of cuts in its banana import tariffs, while Latin American countries agreed to drop complaints to the World Trade Organisation against the 27 nation European bloc.

The EU and WTO hailed the agreement to settle a dispute that has drawn in the United States and has often soured the negotiating climate between key members of the WTO since 1993.