Chiquita, Pacific Fruit face banana cartel allegation

(BRUSSELS) - The European Commission accused Pacific Fruit and Chiquita of illegally fixing the prices of bananas they sold in southern Europe and fined Pacific Fruit 8.9 millions euros ($12.25 million).

While the EU's competition watchdog fined Pacific Fruit, it granted immunity to Chiquita for having owned up to the scheme and provided information to authorities.

Chiquita, based in Cincinnati, Ohio, and Pacific Fruit, a group with units in Italy and Belgium that sells the Bonita brand, were accused of fixing prices in Italy, Greece and Portugal between July 2004 and April 2005.

The two companies fixed weekly sales prices and exchanged price information for their respective brands, the commission said.

"By doing so, they directly harmed consumers in the countries concerned," it said in a statement.

At the time, annual banana sales in Italy, Greece and Portugal totalled an estimated 525 million euros.

The commission broke up another cartel in 2008, when it imposed a fine of 60 million euros against Dole and Weichert for fixing the prices of bananas in eight northern EU countries between 2000 and 2002.

Chiquita was also a participant in the cartel but again escaped a fine for having been first to inform the commission.

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