Glass firms hit with huge fines for price fixing scam

Four flat glass manufacturers - including Britain's Pilkington - have been handed fines totalling £350m by the European Commission for price fixing.

The Commission found that between 2004 and 2005, Asahi (Japan), Guardian (USA), Pilkington (UK) and Saint-Gobain (France) managed to operate a cartel through a series of meetings and illicit contact, which managed to raise or stabilise the price of flat glass used in the construction sector throughout the European Economic Area (EEA).

As CJ reported earlier this year (CJ 28 March), the charges followed raids on the glass makers in February 2005 after market information provided by several member states' national competition authorities.

The evidence uncovered revealed that the four manufacturers, with a share of more than 80% of the EEA market, had organised several rounds of price increases and fixed minimum prices.

Pilkington was fined £101m for its part in the cartel, while Guardian, Saint Gobain and Asahi received fines of £107m, £96m and £46m respectively. The fines were close to the maximum permitted, which is up to 30% of the company's turnover within the sector.

Competition commissioner Neelie Kroes said: "The commission will not tolerate companies cheating consumers and business customers by fixing prices and depriving them of the benefits of the single market."