Degussa fined for price fixing
the European Commission after it was found guilty of taking part in
a price fixing cartel relating to amino acids used in animal
fodder. Degussa said it would contest the fine which was
"unacceptable".
German fine chemicals group Degussa has been fined €118 million by the European Commission after it was found guilty of taking part in a price fixing cartel relating to amino acids used in animal fodder. The other companies involved in the cartel were Nippon Soda, which received €9 million fine, and Aventis, which was not fined because it had blown the whistle on the scheme.
The Commission said it has levied the fines because the firms showed "a complete disregard for their customers and, ultimately, consumers of chicken and pork meat who paid more for the products concerned than if the companies had engaged in healthy price competition." Degussa commented on the fine, saying that it was "unacceptable" and that it would contest the decision.
The Commission said it had been investigating the case since 1999 and had discovered that the cartel had lasted from 1986 to 1999. "They agreed on price targets, implemented price increases and exchanged information on sales volumes and market shares for methionine," the Commission said in a statement.
The Commission added that the companies met at 'summits' to determine their prices and to exchange sales volumes. They also met at a technical level.
The Commission said the difference in the size of the fines was accounted for by the disproportionate share of the market held by Degussa, the world's biggest producer of methionine.
