Plasterboard cartel fines

PPI, Aug 2008

EUROPE

The European Court of First Instance (CFI) has upheld fines imposed by the European Commission (EC) on three plasterboard producers in 2002, for operating a long-running cartel in the Benelux countries, Germany, France and the UK.

However, it has cut the penalty imposed on the UK firm BPB from Euro 138.6 million ($217.5 million) to Euro 118.8 million ($186.4 million), by giving an additional 10% reduction of the fine above the 30% already granted by the commission for the company's cooperation during the investigation.

As a result, the total fine imposed by the EC on the cartel participants has been cut from Euro 478.32 million to Euro 458.52 million.

On November 27, 2002, the EC fined BPB, Gebrüder Knauf Westdeutsche Gipswerke, Société Lafarge and Gyproc Benelux for participating in a cartel on the market for plasterboard in the UK, Germany, France and the Benelux countries between 1992 and 1998.

In February 2003, the four producers brought actions against the EC before the CFI, claiming various errors in the case. However, the court has rejected the petitioners' arguments seeking annulment of the decision and upheld the fines imposed on all but one.