EU

EU fines "paraffin mafia" cartel 676 million euros

Article published on the 2008-10-01 Latest update 2008-10-01 14:48 TU

(Photo: Wikimedia Commons)

The European Commission announced Wednesday it is fining paraffin wax producers a total of 676 million euros for price-fixing. Large multinationals, including Shell, ExxonMobil and Total were caught in the sting. Shell co-operated with uncovering the cartel, so will not be subject to fines.

"Such illegal cartel behaivour cannot and will not be tolerated by the Commission, and companies' managers and shareholders should take note," said EU competition Commissioner Neelie Kroes.

South Africa's Sasol was levied the biggest fine, a total of over 318 million euros, for the role it played as the leader of the cartel, according to Kroes.

US ExonMobil was handed down an 83.5-million-euro fine, and issued an immediate statement that it "deeply regrets its involvement, although limited, in the infringement of competition laws through the participation of a few of the company's former employees".

Penalties were also handed down to cartel members Spain's Repsol, the Italian company ENI, France's Total, MOL of Hungary, and Tudapetrol as well as Hansen and Rosenthaland and RWE of Germany.

The companies were penalised for a cartel for paraffin wax in the European Economic Area between 1992 and 2005.

Paraffin waxes are used to make wax paper, paper cups and plates, as well as tyres, packing and chewing gum.