Court Trims Solvay's EU Antitrust Fine

Solvay won a 16.5% cut to an antitrust fine after Europe's second-highest court said the Belgian chemicals group took part in an illegal cartel for less time than EU regulators had ruled.        

Solvay was one of seven companies, which included Dutch peer Akzo Nobel, French groups Elf Aquitaine, Total and Arkema France, which were fined a total of €388.13 million ($557.5 million) by the European Commission five years ago.       

The European Union executive said the bleaching chemicals cartel lasted from January 1994 to the end of 2000, during which the companies fixed prices and allocated market shares.       

Solvay challenged the Commission's decision at the Luxembourg-based General Court. Total, Elf Aquitaine and Arkema's appeals are still pending. Akzo Nobel has dropped its appeal.       

 The Court accepted part of Solvay's argument and cut its fine to €139.5 million from 167.06 million.       

"The court takes the view that the evidence at the Commission's disposal does not constitute a body of evidence sufficient to warrant its finding that Solvay participated in the infringement during the period from 31 January 1994 until May 1995," the court said.      

"Consequently, the court has decided to reduce the fine imposed on Solvay, so as to take account of the reduced period of its participation in the cartel."
The court annulled a €58.13 million fine levied on Edison and its subsidiary, saying the regulator had failed to prove that the parent company had a decisive influence over the conduct of its subsidiaries.       

The Court cited the same reason for scrapping the Commission's decision against Air Liquide for taking part in the cartel. The company had not been fined, as it had quit the market in 1998, prior to the regulator's investigation.       

The Commission said it would study the ruling.