EU fines rubber cartel €519m

The European Commission imposed its second-largest cartel fine ever today - €519 million - against five companies for fixing …

The European Commission imposed its second-largest cartel fine ever today - €519 million - against five companies for fixing prices of synthetic rubber used to make tyres and other products.

"Companies belonging to the groups Eni, Bayer, Shell, Dow, Unipetrol and Trade-Stomil operated the cartel from at least 1996 to 2002," the Commission said in a statement.

The Commission fined Eni of Italy €272.3 million; Shell of the Netherlands and Britain €160.9 million; and Dow Chemical of the United States €64.6 million.

Poland-based Stomil was fined €3.8 million euros, while Czech firm Unipetrol was fined €17.6 million.

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Germany's Bayer had its fine - of €204 million - waived because it was the whistleblower.

"The Commission has imposed high fines in this case, but if companies continue to indulge in cartel activities, then they can expect their fines to be even higher in the future," Competition Commissioner Neelie Kroes said in a statement.

"Cartels strike at the heart of healthy economic activity. They undermine competition, raise prices for consumers and reduce the diversity, quality and innovation of European companies," she said.

Dow's fine was reduced because it too gave the Commission some information. Although Shell admitted to participating in the cartel, its information added little value to the investigation so it received no reduction. In fact, Shell's fine, as well as Eni's, was increased from what it would have been under the Commission's normal calculations because of repeat offences.