Agenda

EUROPEAN COMMISSION FINED CANNED VEGETABLES CARTEL

25/10/2019

The European Commission (“the Commission”) fined undertakings producing canned vegetables for engaging in a cartel. The investigation has been conducted against four undertakings; Coroos, Groupe CECAB, Bonduelle and Conserve Italia, and finalized by settlement with regards two three of them. Coroos and Groupe CECAB are fined 13,647,000 and Euros 18,000,000 Euros respectively. Bonduelle was granted full immunity for leniency application and Conserve Italia was subsequently added to the investigation but was not covered by this settlement decision. Therefore, the standard investigation procedure will continue for Conserve Italia.

The Commission determined that these three companies; continued cartel to preserve or strengthen their position on the market, to maintain or increase selling prices by agreeing on market shares and volume quotas, allocating customers and markets and exchanging commercially sensitive information in the European Economic Area for 13 years. The investigation found the existence of a single infringement involving 3 separate agreements:

  1. An agreement covering private label sales of canned vegetables such as green beans, peas, peas-and-carrots mix to retailers in the EEA,
  2. An agreement covering private label sales of canned sweetcorn to retailers in the EEA,
  3. An agreement covering both own brands and private label sales (sold under retailers' brands) of canned vegetables to retailers and to the food service industry specifically in France.

Coroos, Groupe CECAB, Bonduelle admitted their involvement in the cartel and agreed to settle the case. The Commission granted fine reductions pursuant to both 2006 Leniency Notice and 2008 Settlement Notice. As per Leniency Notice;

  1. Bonduelle received full immunity from the fine,
  2. Coroos and Groupe CECAB received %15 and %30 fine reductions respectively for their cooperation with the Commission during the investigation.

Regarding 2008 Settlement Notice, all undertakings received 10% fine reduction for their acknowledgment of the participation in the cartel and of the liability in this respect.

As a result, Bonduelle was not fined due to the leniency application, Coroos was fined € 13.647.000 and Groupe CECAB was fined € 18.000.000, amounting to € 31.647.000 in total.