EU court reduces fines on rubber cartel
Photo © Joost J. Bakker IJmuiden
(LUXEMBOURG) - Europe's second highest court reduced on Wednesday huge fines imposed on chemical firms, including Italy's ENI, that were accused of fixing prices in the synthetic rubber industry.
The European Commission imposed 519 million euros ($727 million) in fines in November 2006 against 13 firms accused of forming a cartel to fix the prices of butadiene rubber and emulsion styrene butadiene rubber, both used in tyre production.
The commission had slapped the biggest penalty against ENI and its subsidiary Polimeri Europa, increasing the fine by 50 percent because the firms had been involved in two earlier price-fixing cartels.
But the General Court of the European Union ruled that the commission failed to produce "enough detailed and specific evidence" to prove that ENI and Polimeri Europa repeatedly broke the law.
The Luxembourg-based court decided to slash their fine from 272.25 million euros to 181.50 million euros.
The court erased 21.35 million euros in fines against Czech chemicals group Unipetrol and two units, Kaucuk and Trade-Stomil, saying there was "not sufficient" evidence to find that they took part in unlawful agreements.
The judges, however, rejected all the arguments presented by the Anglo-Dutch energy giant Shell and maintained the fine of 160.88 million euros.