EU fines 11 companies for price fixing

The European Commission fined 11 European companies €30 million today for fixing the price of industrial thread, saying their…

The European Commission fined 11 European companies €30 million today for fixing the price of industrial thread, saying their practices restricted access to the European market for competitors.

EU Competition Commissioner Neelie Kroes said the cartel was "unjustifiable, and will be punished severely no matter how large or small the companies involved."

The European Union head office said 11 companies from Germany, Belgium, the Netherlands, France, Britain and non-EU member Switzerland were involved in fixing the price of the thread - used in the making of clothes, car seats, leather goods and footwear. British firm Coats Ltd got the biggest fine, £10million.

The EU said it carried out raids in 2001 to get proof of three cartel "arrangements," which it said took place between 1990 and 2001. The Commission said cartel deals took place in Belgium, the Netherlands, Luxembourg, Denmark, Sweden and Finland between January 1990 and September 2001.

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A related cartel was set up in Britain between October 1990 to September 1996, while a third scheme was set up across Europe, including Switzerland and Norway between May 1998 to May 2000.

It said for these cartels "thread producers took part in regular meetings and had bilateral contacts to agree on price increases and/or on target prices."

The Commission added that the cartels colluded to keep out competitors by undercutting their prices.

AP