European Commission issues €31.6m fine to canned foods cartel

The European Commission has issued a fine totalling €31.6-million to two canned foods companies. The two firms had been making price agreements for several years. The Dutch company Coroos was ordered to pay €13.6-million, whereas the French company CECAB was fined €18-million.

The cartel made price agreements for more than thirteen years about the sale of canned corn, green beans, peas and pea-carrot combinations in Europe.

A third firm, French company Bonduelle, was also involved in the cartel but avoided a fine due to having revealing the cartel's existence to the Commission.

Commissioner Margrethe Vestager, in charge of competition policy, said: “European consumers should have access to food at affordable prices. Competition enables that. But instead of competing with each other, Coroos and Groupe CECAB agreed to divide the market among themselves and to fix prices for canned vegetables across Europe. They did so for over a decade. These cartels ultimately hurt European consumers and with today's decision we send a clear message to companies that cartels are not accepted."

The investigation into the canning cartel started in 2013 and covered a period from January 2000 to June 2013. Due to the companies' cooperation in the investigation and their agreeing to a settlement, their fines were reduced. Investigation into a fourth company, Conserve Italia, is still ongoing.

The Commission's investigation revealed the existence of a single infringement comprising three separate agreements.

One agreement covered private label sales of canned vegetables to retailers in the Europe. A second concerned private label sales of canned sweetcorn to retailers across Europe. The third agreement covered both own brands and private label sales of canned vegetables to retailers and to the food service industry specifically in France.

The Commission found that Coroos participated only in the first agreement while Bonduelle and Groupe CECAB participated in all three and hence the Dutch firm received a lower fine.

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