The European Commission sent a stern message to big corporations yesterday by announcing €226 million (£178 million) in fines for price-fixing - the latest in a record €1.5 billion in cartel fines this year.
"The message to any companies which are playing this game is clear - the Commission will not tolerate attempts to cheat the European public and undermine the competitiveness of our economy," European Commission President Romano Prodi said in a statement.
The Commission slapped four big companies with more than 85 per cent of yesterday's total, including €63.5 million against Swiss chemical firm Hoffman-La Roche AG and €40 million against US food company Archer Daniels Midland for fixing the price of citric acid, a food preservative.
Brewer Interbrew was fined €46.5 million and French food maker Danone, which previously owned brewer Alken Maes, was fined €44.6 million for fixing the price of beer in Belgium.
The Commission timed its actions for maximum effect by announcing them together with a host of smaller fines against other firms.
The idea was to publicise a broad sweep against cartels in Europe to dissuade others from conspiring to set prices or allocate territories.
During the year, Commission cartel action has included investigations, settlements or fines of broadcasters, banks, sports associations, drug companies, steamship lines, airlines, waste collectors, graphite electrode producers for the steel industry, auto-makers and post offices.
Fines this year are so heavy that they include four of the EU's top 10 cartel fines of all time. Roche alone accounts for more than one third of the fines in 2001. Two weeks ago the Swiss chemical firm was hit with the biggest antitrust levy in EU history - €462 million - for conspiring to fix vitamin prices.
"I am confident that the message is now being clearly received," Competition Commissioner Mario Monti said in a statement.
The Commission also revealed a glimpse of the behind-closed-door muscling that went on in one cartel. It said Danone threatened to make Interbrew's life difficult in France if it did not meet its requests.
"This threat led to an increase of the cartel activity," the Commission said.
Roche and Interbrew have been very public in their apologies and pledges never to take part in cartels in the future.
Danone said it had made provisions for nearly half the fine and that it would have no impact on its 2001 result targets.
Archer Daniels Midland had no immediate comment. Roche said it has sent more than 7,500 managers to a training programme, "Behaviour in Business".
Roche has been at its training programme for some time because it earlier paid fines in the United States for the same behaviour. The United States also imposed criminal sanctions and sent former managers to jail in some cases.
Interbrew spokesman Mr Corneel Maes said: "It will not happen again. This is completely in the past."
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