European producers fined for price fixing
Well known producers including the Bayer, Denka, DuPont, Dow, ENI and Tosoh groups have been fined a total of €243,210,000 by the European Commission for participating in a cartel which fixed prices for chloroprene rubber — which is used for rubber components in the inner soles of shoes and as adhesive — in the European Economic Area (EEA) between 1993 and 2002.
ENI faced the largest punishment, of a 60% increase in its fine, as it had participated in similar behaviour previously. Bayer’s fine would also have been increased by the same amount; however, it escaped a harsher penalty as it was the first company to come forward with information about the cartel under the Commission's 2002 Leniency Notice and therefore received full immunity.
Commenting on the findings, competition commissioner Neelie Kroes said, “It is particularly disappointing that the rubber industry has still not learned its lessons about avoiding cartels. I find it very difficult to understand how shareholders and board members can tolerate such illegal behaviour."
