The European Commission, following in the footsteps of the US, has alleged that auction houses Christie's and Sotheby's fixed prices in their auctioning of fine art.
"The most important aspect of the agreement consisted in an increase in the commission paid by sellers at auction," the Commission said in a statement today.
It added that the agreement also included other trading conditions including advances paid to sellers, guarantees given for auction results and payment conditions.
The commission noted that its formal action was a procedural step that did not prejudge the outcome because the parties have the right of reply.
The commission said it began its investigation in January 2000 when Christie's approached both the Commission and the US department of justice with evidence of a cartel between itself and Sotheby's. At the time, Christie's applied for leniency in both jurisdictions.
Under the rules of both the EU and the justice department the first party in a cartel to report the matter to authorities is entitled to leniency.