Antitrust Law Daily Wrap Up, ANTITRUST NEWS: €338M fine imposed on sausage manufacturers linked to price fixing in Germany, (Jul 16, 2014)

A group of 21 sausage manufacturers and 33 individuals in Germany face a cumulative €338 fine for participating in illegal price fixing agreements, the Bundeskartellamt announced yesterday. The sausage manufacturers allegedly met regularly for several decades and called themselves the “Atlantic Group,” named after the hotel in which the manufacturers first met to discuss market development and prices.

The Bundeskartellamt found that the group made various agreements to collectively set price increases for the sale of sausage products. Although the Bundeskartellamt does not provide the public information regarding individual fines, it noted that the fines in this case ranged from a few hundred thousand euros to amounts in the millions.

“The price-fixing agreements were practiced over many years,” stated Bundeskartellamt President Andreas Mundt. “The overall amount of fines seems high at first glance but has to be seen in perspective in view of the large number of companies involved, the duration of the cartel and the billions in turnover achieved in this market. We have maintained a sense of proportion in particular in setting fines in this case in view of the several small and medium-sized companies active in this sector. For the companies’ benefit we have taken into account the special position of the manufacturers between the food retail trade on the one side and the meat trade on the other, which is just as concentrated. We have also taken the economic situation and financial capacity of each individual company into consideration where relevant evidence was submitted.”

Companies: Bell Deutschland Holding GmbH; Böklunder Plumrose GmbH & Co.; Döllinghareico GmbH & Co. KG; Herta GmbH; Franz Wiltmann GmbH & Co. KG; H. Kemper GmbH & Co. KG; H. & E. Reinert Holding GmbH & Co. KG; Hans Kupfer & Sohn GmbH & Co. KG; Heidemark Mästerkreis GmbH & Co. KG; Heinrich Nölke GmbH & Co. KG; Höhenrainer Delikatessen GmbH; Lutz Fleischwaren GmbH; Marten Vertriebs GmbH & Co. KG; Meica Ammerländische Fleischwarenfabrik Fritz Meinen GmbH & Co. KG; Metten Fleischwaren GmbH & Co. KG; Ponnath DIE MEISTERMETZGER GmbH; Rudolf und Robert Houdek GmbH; Rügenwalder Mühle Carl Müller GmbH & Co. KG; Westfälische Fleischwarenfabrik Stockmeyer GmbH; Wiesenhof Geflügelwurst GmbH & Co. KG; Willms Fleisch GmbH

News: Antitrust