EU hits suspected banana cartel with charges
Friday, 27 July 2007
BRUSSELS, July 26 (AFP): EU antitrust regulators yesterday levelled formal charges against banana wholesalers suspected of running an illegal cartel, a source told AFP Wednesday.
Taking the first legal step towards potentially huge fines, the European Commission sent charge-sheets to half a dozen companies accusing them of operating a cartel over a period of about five years.
The action targets such market leaders as Chiquita, Del Monte and Dole of the United States, plus Noboa of Ecuador and Fyffes of Ireland, according to the source.
The European Commission declined to comment on the case.
Two years ago, the European Commission said it had carried out surprise inspections at banana and pineapple importers in Belgium, Britain, Germany and Ireland.
After receiving the charges against them, the companies will have several months to defend themselves, but if the Commission is not satisfied it can then hit them with fines running as high as 10 per cent of annual sales.
The Commission, Europe's top competition watchdog, is in the midst of a crackdown on illegal cartels and has already this year broken all previous records for fines.
Although the European banana market is not huge, it has run into trouble before by being at the centre of an international trade dispute over Europe's quota system that favoured producers in former colonies.
Taking the first legal step towards potentially huge fines, the European Commission sent charge-sheets to half a dozen companies accusing them of operating a cartel over a period of about five years.
The action targets such market leaders as Chiquita, Del Monte and Dole of the United States, plus Noboa of Ecuador and Fyffes of Ireland, according to the source.
The European Commission declined to comment on the case.
Two years ago, the European Commission said it had carried out surprise inspections at banana and pineapple importers in Belgium, Britain, Germany and Ireland.
After receiving the charges against them, the companies will have several months to defend themselves, but if the Commission is not satisfied it can then hit them with fines running as high as 10 per cent of annual sales.
The Commission, Europe's top competition watchdog, is in the midst of a crackdown on illegal cartels and has already this year broken all previous records for fines.
Although the European banana market is not huge, it has run into trouble before by being at the centre of an international trade dispute over Europe's quota system that favoured producers in former colonies.