EU fines 3 chemical firms €217 million

Three major European chemicals firms, Akzo Nobel, Atofina and Hoechst, have been fined €217 million by the European Commission…

Three major European chemicals firms, Akzo Nobel, Atofina and Hoechst, have been fined €217 million by the European Commission for fixing prices on a widely used chemical.

Hoechst of Germany was fined €74.03 million, Akzo Nobel €84.38 million and Atofina - the chemical branch of Total of France now known as Arkema - €58.5 million. Hoechst, after several mergers, is now part of France's Sanofi-Aventis.

The chemical, monochloroacetic acid, is used in food, detergents, adhesives, drugs and cosmetics. Clariant of Switzerland was part of the cartel after it took over Hoechst's business in 1997, but received full immunity from the Commission for blowing the whistle.

The companies controlled 90 per cent of the market in the European Economic Community for the chemical during the time of the cartel, from 1984 to 1999.

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"The Commission cannot and will not tolerate price fixing and market sharing," Competition Commissioner Ms Neelie Kroes said in a statement. "The fight against cartels is one of my top priorities."

The Commission said in its statement that it considered the violation very serious. Ms Kroes said she would increase fines as a deterrent when companies repeatedly violate antitrust rules.