European Commission Fines Banana Suppliers for Operating Price Cartel
The European Commission fined banana importers Dole and Weichert € 60.3 million for participating in a cartel between 2000 and 2002, in violation of the European Commission Treaty’s ban on cartels and restrictive practices.
The Commission found that Dole, Chiquita, and Weichert (which sells Del Monte bananas) coordinated the setting of quotation prices for bananas in eight EU Member States: Austria, Belgium, Denmark, Finland, Germany, Luxembourg, The Netherlands and Sweden. In 2002, the combined retail value of bananas sold in those Member States totaled around € 2.5 billion.
The EC opened an investigation in April 2005, after Chiquita applied for immunity as a whistle-blower under the EC’s 2002 Leniency Notice. The Notice grants immunity from fines to the first member of a cartel to inform the Commission of an undetected cartel by providing the Commission with enough information to allow an inspection on the premises of the suspected companies.
The EC then carried out surprise inspections at the premises of several banana importers. The EC discovered that between 2000 and 2002, each Thursday the banana importers in question would announce their price for bananas for the following week in the eight Member States. On many occasions, the companies would call each other, usually the day before they set their prices. During the calls, the companies would discuss their pricing intentions and how they saw the prices evolving. The companies denied they were sharing sensitive information, instead claiming they were required to share trade data under the EU’s system of setting import duties and volumes.
Dole, which is the world’s largest producer of fresh fruit and vegetables, was fined € 45.6 million. Weichert was fined € 14.7 million. Chiquita avoided a fine of € 83 million because it provided information that enabled the EC to open the investigation. The fines on Dole and Weichert were originally higher, but were reduced because of specific circumstances of the case, including the regulatory regime that existed in the banana market at the time of the violations.
In addition, Weichert’s fine was reduced by 10 percent because it did not participate in part of the cartel. Del Monte was held jointly and severally liable for Weichert’s fine, since it controlled Weichert at the time of the cartel. However, Del Monte claimed it was not responsible for Weichert’s conduct because it held only a “noncontrolling financial interest” in the company.
Any person or firm who was affected by the banana cartel can go to court to seek any damages which resulted from the cartel.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
The Commission found that Dole, Chiquita, and Weichert (which sells Del Monte bananas) coordinated the setting of quotation prices for bananas in eight EU Member States: Austria, Belgium, Denmark, Finland, Germany, Luxembourg, The Netherlands and Sweden. In 2002, the combined retail value of bananas sold in those Member States totaled around € 2.5 billion.
The EC opened an investigation in April 2005, after Chiquita applied for immunity as a whistle-blower under the EC’s 2002 Leniency Notice. The Notice grants immunity from fines to the first member of a cartel to inform the Commission of an undetected cartel by providing the Commission with enough information to allow an inspection on the premises of the suspected companies.
The EC then carried out surprise inspections at the premises of several banana importers. The EC discovered that between 2000 and 2002, each Thursday the banana importers in question would announce their price for bananas for the following week in the eight Member States. On many occasions, the companies would call each other, usually the day before they set their prices. During the calls, the companies would discuss their pricing intentions and how they saw the prices evolving. The companies denied they were sharing sensitive information, instead claiming they were required to share trade data under the EU’s system of setting import duties and volumes.
Dole, which is the world’s largest producer of fresh fruit and vegetables, was fined € 45.6 million. Weichert was fined € 14.7 million. Chiquita avoided a fine of € 83 million because it provided information that enabled the EC to open the investigation. The fines on Dole and Weichert were originally higher, but were reduced because of specific circumstances of the case, including the regulatory regime that existed in the banana market at the time of the violations.
In addition, Weichert’s fine was reduced by 10 percent because it did not participate in part of the cartel. Del Monte was held jointly and severally liable for Weichert’s fine, since it controlled Weichert at the time of the cartel. However, Del Monte claimed it was not responsible for Weichert’s conduct because it held only a “noncontrolling financial interest” in the company.
Any person or firm who was affected by the banana cartel can go to court to seek any damages which resulted from the cartel.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
Labels: banana, eu competition law, eu law, european antitrust lawsuits, weichert
posted by European Antitrust Law at
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