C ARTEL D AMAGE C LAIMS

– CDC –

THE EUROPEAN BRAND FOR PRIVATE ANTITRUST ENFORCEMENT










 


















'The participants pursued a strategy of stabilising the SC market, the ultimate aim of which was to allocate the SC sales volumes among each other, to coordinate the pricing policy towards the customers and thereby to maximize the margins.'

European Commission, decision dated 11 June 2008 [COMP/38.695]








Sodium Chlorate

One affiliate of the CDC group is in charge of the enforcement of antitrust damage claims purchased from victims of the sodium chlorate cartel. Sodium chlorate is a bleaching agent mainly used in the pulp and paper manufacturing industry.

Background and facts

According to the findings of the European Commission in its decision of 11 June 2008 in the proceeding COMP/38.695 – Sodium Chlorate, the following eight companies participated at least from 1994 to 2000 in EEA-wide anticompetitive agreements and concerted practices on the market for sodium chlorate:

According to the Commission this constitutes a single and continuous infringement of Art. 101 TFEU and Art. 53 of the Agreement on the European Economic Area. In numerous meetings the cartel members fixed target prices and monitored their implementation, allocated customers as well as market shares and exchanged commercially sensitive information. The cartelists pursued an overall strategy of artificially stabilising the sodium chlorate market. The ultimate aim of the infringers was “to coordinate the pricing policy towards the customers and thereby to maximize the margins”. Three out of four groups of companies acknowledged their participation in the anti-competitive agreements and provided evidence to the Commission under the leniency programme.

The European Commission has imposed fines, totalling € 79 070 000 on the four groups of companies. Akzo Nobel and its subsidiary EKA Chemicals received full immunity from fines under the Commission’s 2002 Leniency Programme, as they were first to provide information about the cartel. Finnish Chemicals' fine was reduced by 50% because the company cooperated with the investigation. The fine imposed on Arkema France was increased by 90%, as the company is a repeat offender (condemned for three previous cartels before this one). Nonetheless, each member of the sodium chlorate cartel may be held liable in private damages actions.

Civil proceedings

On 31 May 2011 CDC started legal proceedings against Akzo Nobel, Kemira Chemicals, EKA Chemicals and Arkema France for damages resulting from their participation in the European sodium chlorate cartel. The action was filed at the court in Amsterdam where CDC is represented by the law firm Barents Krans. 

Prior to the filing of the action, ten pulp and paper companies with a total of 27 production sites located in 9 European countries have sold their cartel-related damage claims resulting from sodium chlorate purchases to CDC. Together they account for almost half of the overall European demand for sodium chlorate. CDC purchased these claims and now enforces them under its own name and on its own account using its technical and economic know-how.  

Based on detailed transaction data collected from the damaged companies, CDC can confirm that the cartel resulted in significant price overcharges for the customers of the Cartel. As a consequence, sodium chlorate purchasers incurred significant damages for which the defendants are liable. These damages will be increased by interest as of the first day when the damage was incurred.

Further information

On the administrative proceedings:
On the civil proceedings initiated by CDC:


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