Antitrust Law Daily Wrap Up, ANTITRUST NEWS: European Commission Banana Cartel Findings Upheld, Fine Against Del Monte Reduced, (Mar 15, 2013)

By Jeffrey May, J.D.

The European General Court (GC) has upheld the European Commission's 2008 decision against European banana importers for their participation in a cartel. The EC issued a statement on March 14, saying that the GC upheld the substantive allegations and the €45.6 million fine imposed on Dole Food Company, Inc. However, the fine imposed on Fresh Del Monte Produce would have to be reduced from €14.7 million to €8.82 million, according to the GC. The fine reduction was reportedly based on Del Monte's cooperation with investigators and other mitigating circumstances.

In October 2008, the EC fined banana importers Dole and Del Monte a total of €60.3 million for participating in a cartel to fix the price of bananas between January 2000 and December 2002 through exchanges of price information. The EC said that Chiquita also participated in the cartel, but was not fined because it was entitled to immunity under the EC’s leniency program.

The EC decided that Del Monte was jointly and severally liable for the conduct of Internationale Fruchtimport Gesellscaft Weichert & Co. At the time of the infringement, Weichert was trading mainly Del Monte branded bananas and Del Monte controlled Weichert, according to the EC.

In a company statement released on March 14, Dole said that it would appeal the decision. “The General Court’s decision treats discussions about general market conditions the same as a price fixing cartel,” said C. Michael Carter, Dole’s President and Chief Operating Officer. “We strongly believe that the European competition laws were not violated and we will appeal this decision to the EU Court of Justice.”

Companies: Dole Food Company; Fresh Del Monte Produce; Chiquita Brands International; Internationale Fruchtimport Gesellscaft Weichert & Co.

News: Antitrust