JCB wins partial appeal against EC fine

JCB has scored a partial success in its appeal against the £25m fine imposed by the European Commission (EC) in 2000 for anti-competitive behavior - a charge it has always denied.

In an appeal hearing in Luxembourg, the Court of First Instance quashed three of the five charges and instructed that the fine be lowered by 25%. Part of the judgment stated: "The lack of sufficient proof regarding the three other elements of the infringement found in the contested decision justifies a significant reduction of the amount of the fine imposed."

The company successfully argued that the restrictions involved were the lawful implementation of a dealer agreement that had been notified to and approved by the EC in 1975/6, 1980 and 1995. JCB chief executive John Patterson said: "Although the judgment vindicates our decision to appeal, we are naturally disappointed that the Court did not uphold the appeal in its entirety."

The EC has been ordered to pay 25% of JCB's costs and the company is considering whether to lodge an appeal to the European Court of Justice.