The Commission has fined Lantmannen ek for and its subsidiary
This decision follows the adoption of a settlement decision against Abengoa in 2021 and the closure of proceedings against
The infringement
Ethanol is an alcohol made from biomass (such as wheat, maize or sugar beet) that, when added to gasoline, can be used as biofuel for motor vehicles. The port of
Lantmannen is the largest ethanol producer in the Nordic region and referenced most of its ethanol sales contracts to the monthly average of Platts' ethanol benchmarks during the infringement period. Therefore, the level of Platts' ethanol benchmarks could directly influence the revenues that Lantmannen received from its ethanol sales during that period.
The Commission's investigation revealed that Lantmannen, together with two other companies:
Coordinated its trading conduct on a regular basis before, during and after the MOC Window.
Agreed to limit the supply of physical ethanol in the
Exchanged commercially sensitive information in order to implement the coordinated behaviour.
This conduct was based on a common plan aimed at artificially increasing, maintaining and/or preventing from decreasing the level of Platts' ethanol benchmarks. Lantmannen expected that this would lead to higher prices for its ethanol sales under the ethanol supply contracts that were referenced to those benchmarks. Illegal contacts took place between traders typically in the form of chats.
The Commission's investigation showed that Lantmannen participated in a single and continuous infringement of Article 101(1) of the Treaty on the Functioning of the
Fines
The fine was set on the basis of the Commission's 2006 Guidelines on fines (see also MEMO).
In setting the level of the fine, the Commission took into account, in particular, the sales value achieved by Lantmannen in the EEA based on certain sales of physical fuel-grade ethanol referenced to Platts' ethanol benchmarks, the serious nature of the infringement, its geographic scope and its duration.
The fine imposed on Lantmannen totals around
Background
Article 101 of the TFEU and Article 53 of the EEA Agreement prohibit cartels and other restrictive business practices.
Following inspections in
In
Following Abengoa's expression of interest to join the settlement discussions with the Commission in mid-2021, the Commission adopted a settlement SO in
As a result, the Commission adopted a new SO against Lantmannen and
Fines imposed on companies for breaching EU antitrust rules are paid into the general EU budget. This money is not earmarked for particular expenses, but the contributions of all Member States to the EU budget for the following year are reduced accordingly. The fines therefore help finance the EU and reduce the burden for taxpayers. In accordance with Article 141(2) of the EU-
More information on this case will be made available under the case number AT.40054 in the public case register on the Commission's competition website once any confidentiality issues have been resolved. For more information on the Commission's action against cartels, see its cartels website.
The settlement procedure
The settlement procedure for cartels was introduced in
In general, a company willing to settle a cartel investigation is bound by its settlement submission according to point 22 of the Settlement Notice. Therefore, a settlement submission cannot be withdrawn at a later stage if the settlement SO issued by the Commission reflects the material elements of its settlement submission. When a company nevertheless chooses to withdraw unilaterally from settlement, the Commission will consider all options in any final decision against the company, including whether aggravating circumstances would justify an increase of the relevant fine.
Whistleblower tool
The
Action for damages
Any person or company affected by anti-competitive behaviour as described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the
The Antitrust Damages Directive makes it easier for victims of anti-competitive practices to obtain damages. More information on antitrust damages actions, including a practical guide on how to quantify antitrust harm, is available here.
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