European Commission Issues Fines Totaling 676 Million Euros for Paraffin Cartel
The European Commission has issued a fine of totaling £676 against nine petrochemical giants for a price-fixing cartel affecting the prices of paraffin wax throughout the European Economic Area. Sasol, the world’s largest producer of fuel coming from coal, faced the stiffest penalties; other cartel members include energy giants ExxonMobil, MOL, Repsol, Shell, RWE, ENI, Hansen & Rosenthal, MOL, Repsol, Tudapetrol and Total.
This represents the fourth-largest fine the Commission has handed down for anti-trust violations. Its size is due in part to the breadth of commercial impact, duration of the violations and size of the colluding firms.
Paraffin wax is derived from petrochemicals and used in a variety of products available at the retail level, from chewing gum to rocket fuel, and crayons to wax for surfboards.
The Commission’s top agent said in a statement: “There is probably not a household or company in Europe that has not bought products affected by this ‘paraffin mafia’ cartel, with all that implies in terms of paying over the odds, higher costs and economic damage.”
Executives at the firms were well aware that the cartel membership and activity was illegal, according to the Commission.
The single largest fine, £318.3 million, was issued to Sasol. Sasol faced the stiffest penalties because it was the leader of an illegal price-fixing cartel, according to Commission. The cartel fixed prices of paraffin and slack wax from 1992 until 2005, and the Commission’s evidence says that the cartel met regularly to fix prices, and allocate markets and customers.
Sasol cooperated with investigators, which qualified it as part of the Commission’s leniency program. Under its regulations, cartel members who come forward with evidence of anti-competitive behavior face reduced financial penalties. The Commission has the power to levy fines up to 10% of a firm’s global sales. In this case, Sasol’s fines were reduced from £636 million due to its cooperation.
Shell was granted immunity from fines because it first approached the Commission with information of an illegal parrafin anti-competition cartel. It’s fine may have reached £98 million.
The Commission imposed the largest fine on Sasol Wax Gmbh, based in Hamburg. The parent firm said that the fine would be shared among Sasol Wax Gmbh and several of its other divisions, including Sasol Wax International AG, Sasol Holding in Germany Gmbh and Sasol Limited.
Individuals and corporations who were affected by the artificially inflated prices are entitled to seek damages in the national courts of European Union countries.
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.
This represents the fourth-largest fine the Commission has handed down for anti-trust violations. Its size is due in part to the breadth of commercial impact, duration of the violations and size of the colluding firms.
Paraffin wax is derived from petrochemicals and used in a variety of products available at the retail level, from chewing gum to rocket fuel, and crayons to wax for surfboards.
The Commission’s top agent said in a statement: “There is probably not a household or company in Europe that has not bought products affected by this ‘paraffin mafia’ cartel, with all that implies in terms of paying over the odds, higher costs and economic damage.”
Executives at the firms were well aware that the cartel membership and activity was illegal, according to the Commission.
The single largest fine, £318.3 million, was issued to Sasol. Sasol faced the stiffest penalties because it was the leader of an illegal price-fixing cartel, according to Commission. The cartel fixed prices of paraffin and slack wax from 1992 until 2005, and the Commission’s evidence says that the cartel met regularly to fix prices, and allocate markets and customers.
Sasol cooperated with investigators, which qualified it as part of the Commission’s leniency program. Under its regulations, cartel members who come forward with evidence of anti-competitive behavior face reduced financial penalties. The Commission has the power to levy fines up to 10% of a firm’s global sales. In this case, Sasol’s fines were reduced from £636 million due to its cooperation.
Shell was granted immunity from fines because it first approached the Commission with information of an illegal parrafin anti-competition cartel. It’s fine may have reached £98 million.
The Commission imposed the largest fine on Sasol Wax Gmbh, based in Hamburg. The parent firm said that the fine would be shared among Sasol Wax Gmbh and several of its other divisions, including Sasol Wax International AG, Sasol Holding in Germany Gmbh and Sasol Limited.
Individuals and corporations who were affected by the artificially inflated prices are entitled to seek damages in the national courts of European Union countries.
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: eu competition law, eu law, european antitrust lawsuits, paraffin, Sasol, wax
posted by European Antitrust Law at
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