'The infringement [of Article 81(1) of the EC Treaty] consisted of a complex of behaviour having a single economic aim, namely to distort the normal movement of prices in the market for Hydrogen Peroxide'
European Commission, decision dated 3 May 2006 [COMP/38.620]
Hydrogen Peroxide
CDC affiliate CDC Hydrogen Peroxide SA – ‘CDC HP’ (Company Register Brussels No. 888.791.006) – is the company of the CDC group in charge of the enforcement of antitrust damage claims purchased from victims of the Bleaching Agent Cartel. This case concerns the EEA-wide market for hydrogen peroxide.
Background and facts
By decision dated 3 May 2006 [COMP/38.620], the European
Commission
found that the following companies infringed Article 81(1) of the EC
Treaty and Article 53 of the EEA Agreement by participating in a
‘single and
continuous infringement’ regarding hydrogen
peroxide (HP), covering the whole territory
of the European Economic Area (EEA) between 1994 and 2000 at least:
- Akzo Nobel NV, Akzo Nobel Chemicals Holding AB, and EKA Chemicals AB,
- Edison SpA, Ausimont SpA (now: Solvay Solexis SpA),
- FMC Corporation, and FMC Foret SA,
- Kemira Oyj,
- Snia SpA, and Caffaro Srl,
- Solvay SA/NV,
- Total SA, Elf Aquitaine SA, and Arkema SA (formerly: Elf Atochem SA and Atofina SA),
- L’Air Liquide SA, and Chemoxal SA, and
- Evonik Degussa GmbH.
The Commission imposed fines of a total of € 388.128 million against seven undertakings. No fines were imposed on L’Air Liquide SA (with its affiliate Chemoxal SA), as it left the market in 1998 and profited from the statute of limitation, and on Degussa AG, as it received full immunity under the Commission's leniency programme. Notwithstanding, each member of the Hydrogen Peroxide Cartel may be held liable in private damages actions.
According to the findings of the Commission, the cartel members fixed and monitored target prices, allocated market shares and customers among each other, exchanged commercially important and confidential information, and limited production. The cartel mainly damaged purchasers of hydrogen peroxide for use as bleaching agent in the pulp and paper industry, in the textile industry, for disinfection or in the environmental sector (in sewage treatment, for example) or as resource in the subsequent production of peroxide products (such as persalts).
Civil proceedings
On 16 March 2009, CDC HP (represented by the international law firm Osborne Clarke) filed a legal action for antitrust damages against Evonik Degussa GmbH, Akzo Nobel NV, Solvay SA/NV, Kemira Oyj, Arkema SA, and FMC Foret SA before the Regional Court of Dortmund, Germany [Case No. 13 O 23/09 (Kart)].CDC HP asserts the antitrust damage claims previously bought from 32 companies of the pulp and paper industry. The companies purchased HP during the cartel period for a total of 94 production sites located in 13 European countries, equalling more than 55 % of the total demand for HP in Europe. Thus, the legal action brought by CDC HP is one of the largest actions for damages resulting from a violation of antitrust law in Europe.
The analysis by CDC of the relevant purchase data and market data has confirmed that the Bleaching Agent Cartel resulted in an artificial price increase for HP to the disadvantage of any purchaser during the cartel period and due to lingering effects even beyond. In the Commission’s Competition Policy Newsletter (2006/III), officials of the Commission in charge of the cartel investigation stated that ‘from late 1997 to 1999 the prices for HP […] doubled. At several meetings the participants welcomed the good degree of implementation of the cartel agreements regarding prices.’ Thus, it can be assumed that the Bleaching Agent Cartel resulted in a price increase of 100 % between 1997 and 1999. A preliminary damage scenario by CDC indicates that the companies which have sold their claims to CDC HP sustained damages of more than € 430 million. The damages for which the defendants are liable will be increased by interest as of the first day of the infringement. At the date of filing the action, the interest had already amounted to approximately 50 % of the cartel-related damages.
Further information
On the administrative proceedings:- Decision COMP/F/38.620 (non-confidential
version) of the European Commission of 03/05/2006 along with summary of
this decision (COMP/38.620)
- Press release of the Commission of 03/05/2006 (IP/06/560)
On the civil proceedings initiated by CDC HP:
- Press
release of CDC HP of 23/04/2009
Printer friendly version of this page 