European Court reduces 2006 fines for SBR cartel

ERJ staff report (DS)

Brussels -- The General Court of the European Union has reviewed fines imposed by the EU in 2006 over a cartel to sell emulsion-polymerised SBR and BR. The main effect is to annul the fine on Unipetrol, its subsidiary Kaucuk and Trade-Stomil due to lack of evidence.

In addition, the fine imposed jointly and severally on Eni and its subsidiary Polimeri Europa is reduced by over euro 90 million, to €181.50 million from the original fine of €272.25 million. Furthermore the court found that Dow's participation int he cartel was over a shorter period than alleged. Finally, the court upheld all decisions and fines in relation to Shell.

In a decision dated 29 November 2006, the Commission imposed fines totalling more than €519 million on 13 companies for their participation over various periods between 20 May 1996 and 28 November 2002 in a cartel on the market for butadiene rubber (BR) and emulsion styrene butadiene rubber (E-SBR).

The companies concerned brought actions before the General Court for annulment of the Commission's decision or reduction of their fines.

The Court said there was insufficient evidence against Unipetrol and its subsidiaries to prove unlawful activity. The Court concludes that the Commission erred in finding that they participated in the cartel and, accordingly, has decided to annul the decision in so far as it concerns Unipetrol, its subsidiary Kaucuk and Trade-Stomil.

With regard to Eni and its subsidiary Polimeri Europa, the Court recalls that the Commission increased their basic fine by 50 percent for repeated infringement on account of their participation in two earlier cartels. The Court considers that the Commission did not produce enough detailed and specific evidence to be able to show that those companies had repeated an infringement. Consequently, the Court has decided to reduce the original fine of €272.25 million imposed jointly and severally on Eni and its subsidiary Polimeri Europa to €181.50 million.

As regards Dow Deutschland, the Court finds that it participated in the infringement over a shorter period than that determined by the Commission: from 2 September 1996 to 27 November 2001 instead of from 1 July 1996 to 27 November 2001. Consequently, the Commission's decision is annulled in that respect.

Finally, the Court rejects all the arguments put forward by the Shell group companies in the Netherlands and, accordingly, has decided to maintain the fine of €160.88 million imposed on them.

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Press release from EU court