EU Fines Flexible Foam Producers for Price Fixing
In its latest trust-busting move, the European Commission has closed a case dating from 2010, fining three manufacturers of flexible polyurethane foam €114 million for price fixing.
The Commission said four companies had founded a cartel aimed at passing on raw material price increases for bulk chemicals to customers and avoiding aggressive price competition among themselves.
Four players, including Luxembourg-based Vita; Carpenter of Richmond, Virginia; Belgium's Recticel and Austria's Eurofoam - the latter a joint venture of Recticel and Austrian Greiner Holding - were deemed to have fixed prices of various types of PU foam in 10 EU member states.
Whistleblower Vita's fine, which would have totaled €61.7m, was excused. In exchange for their cooperation, Eurofoam and its partners had their fines reduced by 50% to a total of €39.1m. Carpenter paid the highest, fine, of €75 million.
