Confectionery manufacturers must pay millions in fines
These proceedings against three manufacturers of sweets lasted a long time. Now the trial ends with a settlement. Bahlsen, Griesson de Beukelaer and CFP Brands have to pay fines. The accusation of price fixing has been dropped.
The protracted legal dispute over a cartel of confectionery manufacturers is as good as over. The Düsseldorf Higher Regional Court announced a verdict according to which the company Bahlsen, which is best known for its "Leibniz Butterkeks", must pay around 3.56 million euros for exchanging information in violation of antitrust law. The company Griesson de Beukelaer, which has brands such as "Prinzen Rolle" in its range, has to pay 2.25 million euros and CFP Brands, with brands such as "Ricola", 0.45 million euros.
Originally, higher fines were planned, but the companies reached an agreement with the court before the verdict. The allegations were reduced and the judges assessed the companies' actions at the time in a milder light. In its ruling, the court also pointed out that food retailers had strong market power vis-à-vis the manufacturers.
The issue was that the companies had exchanged information about the status of negotiations with food retailers in the context of an industry working group between 2006 and 2008. As the events went back so far, the court had decided not to take evidence again in full.
Bahlsen hesitates to reach an agreement
In 2013, the Federal Cartel Office imposed fines on a total of eleven confectionery manufacturers for various reasons. Some companies appealed at the time, after which the dispute went to court over several instances. Now a verdict has been reached against the last three companies affected. The judgment is not yet legally binding. However, in view of the preliminary agreement between the parties, it is not very likely that an appeal will be lodged.
The agreement had already been reached with Griesson de Beukelaer and CFP Brands at the start of the proceedings in mid-November - but not initially with Bahlsen. The presiding judge, Ulrich Egger, then announced that the Bahlsen proceedings could be separated and continued in a separate main hearing. However, there were later further talks with Bahlsen and finally an agreement was reached. The proceedings have now ended after four main hearing days and therefore significantly earlier than planned.
A spokeswoman for Bahlsen emphasized that the accusations of alleged price fixing had been dropped. "The reason for the fine that has now been imposed is rather the exchange of information within the confectionery industry, which mainly served to protect against special demands from the food retail trade, most of which were unlawful."
"Best solution for all parties involved"
A CFP Brands spokesperson pointed out that, according to a Düsseldorf Higher Regional Court ruling from 2017, the company was even supposed to pay five million euros. After a successful appeal to the Federal Court of Justice, the matter ended up before the Higher Regional Court again and the company now has to pay less than a tenth of the original amount. The company had agreed to the termination of the proceedings "in order to bring to an end an excessively long process that had been conducted excessively on the whole". Griesson de Beukelaer did not wish to comment.
Industry experts welcomed the end of the legal dispute. "This is the best solution for all parties involved," said Düsseldorf-based antitrust lawyer Johann Brück, pointing to the great distance in time between the companies' accusations. "Who could have produced memories that were not already on record? The proceedings would have become a pure farce."
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The fines imposed on Bahlsen, Griesson de Beukelaer, and CFP Brands for violations in the food industry under antitrust law have significant implications for the confectionery sector's adherence to competition regulations. The antitrust court's ruling, which modifies initial penalties due to the firms' cooperation, underscores the influence of antitrust law in shaping market transactions within the food industry.
As the antitrust scrutiny on the confectionery industry continues, future court judgments could further shape the way firms in the food industry approach negotiations with retailers and collaborate within working groups, while ensuring compliance with antitrust regulations to avoid substantial fines.
Source: www.ntv.de
