The European Commission imposed a total of €173.9 million fines on 24 companies from ten different plastics additives producers for price fixing and market sharing cartels. Particularly targeted by heavy fines are the Dutch-Swedish group AkzoNobel, Ciba of Switzerland and Arkema of France.

Between 1987 and 2000, explained the Commission, the companies fixed prices, shared customers, allocated markets and exchanged commercially sensitive information on tin stabilisers (1987-2000) and ESBO-esters heat stabilisers (1991-2000) in the European Economic Area (EEA). Heat stabilisers are added to PVC products in order to improve their thermal resistance. They also increase the plasticity, rigidity and transparency of final PVC products and protect them from discolouration.

The companies agreed, between 1987 and 2000, to fix prices and share markets and customers for certain heat stabilisers added to PVC products in order to improve their resistance to heat or avoid discolouration.

The ten groups fined for violating the EC Treaty’s ban on cartels and restrictive business practices (Article 81) are: Akzo, Baerlocher, Ciba, Elementis, Elf Aquitaine (Arkema France), GEA, Chemson, Faci, Reagens and AC Treuhand. Although Chemtura Corporation also participated, it was not fined because it revealed the existence of the cartels to the Commission.

In setting the fines, the Commission took into account the respective affected sales of the companies involved, the very serious nature of the infringement and the fact that the cartel covered the whole EEA. The Commission increased the fines for Arkema France (part of the Elf Aquitaine group at the time of the infringement) by 90% because it had already been fined by the Commission for previous cartels. With regard to the tin stabiliser cartel, the Commission also took into account the cooperation of Arkema France, Baerlocher and Ciba and reduced their fines by 30%, 20% and 15%, respectively. As regards the ESBO-ester cartel, the Commission also took into account the cooperation of Arkema France and Ciba and reduced their fines by 50% and 25%, respectively. Akzo requested leniency but did not meet the requirements for cooperation and so received no reduction in fine.

BASF has already announced that it will appeal the fine imposed on Ciba. Arkema, a former subsidiary of Total, reserves the possibility of appeal, according to a spokesperson. He specified, however, that Arkema would only pay 10% of the fine, the remainder being the responsibility of Total because the events occurred prior to the creation of Arkema and its launch on the stock exchange in 2006.

Details of the fines are available at www.europolitics.info > Search = 260586