Trade Resources Industry Views Brussels Announced Packaging Cartel Investigation

Brussels Announced Packaging Cartel Investigation

Brussels Launches Packaging Cartel Investigation

The companies make and distribute polystyrene(PS)foam trays and polypropylene(PP)rigid trays.These products are widely used for packaging food–such as fish,meat or cheese–in the retail sector.

The EC said that these firms could have been in breach of EU antitrust rules.

The EC has sent an official statement of objections to these businesses,the identity of which it has not disclosed.

Bid-rigging

Brussels has concerns that these companies may have engaged in price fixing,market sharing,customer allocation,exchanges of commercially sensitive information and bid-rigging,in breach of Article 101 of the Treaty on the Functioning of the European Union(TFEU)that prohibits cartels and restrictive business practices.

The companies in question each face fines of up to 10%of their annual worldwide turnover if any case against them is proven.

Impact on consumers

According to the EC,this behaviour,if established,may have affected direct customers,such as supermarkets,and ultimately end-consumers.

Under the terms of the law,the firms to which the EC has written can now examine the documents on its investigations file and reply in writing.

They can also request an oral hearing to present their comments on the case before EC representatives and national competition authorities.

In a statement,the Commission said that it respects the presumption of innocence and the rights of defence and does not reveal the names of the companies concerned at this stage of the investigation.

Source: http://www.packagingnews.co.uk/news/brussels-launches-packaging-cartel-investigation/
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Brussels Launches Packaging Cartel Investigation