The European Commission yesterday slapped fines totalling €388 million on seven companies involved in a chemicals cartel, one of the highest financial penalties imposed by the regulator.

Solvay of Belgium bore the brunt of the punishment and was ordered to pay €167 million. It will also have to pay the €58 million penalty imposed on Edison-Ausimont, an Italian company it acquired in 2002.

France's Total was fined €79 million and Finland's Kemira €33 million, while Dutch group Akzo Nobel and Spain's FMC were ordered to pay €25 million each, and Snia of Italy €1 million.

Degussa, the German chemicals group and another member of the cartel, escaped what would have been a €130 million fine for its role as whistleblower.

Neelie Kroes, competition commissioner, said: "These high fines take into account that certain companies are repeat offenders. Directors and shareholders alike should ask why these practices were allowed to continue."

The chemicals industry has repeatedly been the subject of cartel investigations and already accounted for some of the most spectacular fines.

Yesterday's €388 million fine was the third highest imposed by the commission; at least one company, Edison-Ausimont, received the maximum penalty, equivalent to 10 per cent of global annual turnover.

The regulator said the companies had conspired to allocate market share and fix prices in the market for hydrogen peroxide and perborates - bleaching chemicals used in textiles production, disinfection and in synthetic detergents. The combined market was worth about €470 million in 2000.

The commission found evidence of several meetings to discuss the cartel, including one in a Brussels restaurant in November 1997 at which the companies discussed price increases.

Solvay said it had set aside sufficient reserves to cover the fines, and it expected no impact on its first-quarter results. It was considering an appeal, arguing Solvay's co-operation had not been properly taken into account.