Out-Law / Your Daily Need-To-Know
The European Commission has imposed a total fine of almost € 75 million on Sony, Fuji and Maxell for fixing prices for professional videotapes sold to customers in Europe, in violation of the EC Treaty’s ban on cartels and restrictive business practices.
Between 1999 and 2002, Sony, Fuji and Maxell managed to raise or otherwise control prices through a series of regular meetings and other illicit contacts, according to the Commission's findings.
The cartel covered the two most popular professional videotape formats at the time: Betacam SP and Digital Betacam, which in 2001 totalled annual sales of some €115 million in the European Economic Area. TV stations and independent producers of TV programmes and advertising films are the main customers of professional videotapes.
Sony, Fuji and Maxell, with a combined share of more than 85% of the professional video tape market, organised three successful rounds of price increases and endeavoured to stabilise prices whenever an increase was not possible. They also regularly monitored the implementation of the price agreements.
The evidence uncovered describes in detail 11 meetings during which Sony, Fuji and Maxell discussed and agreed prices and/or exchanged sensitive commercial information as well as continuous contacts intended to monitor the implementation of their cartel agreements.
The Commission started an investigation on its own initiative and carried out surprise inspections at the premises of Sony's, Fuji's and Maxell's European subsidiaries in May 2002. The inspections found "abundant evidence of cartel activities".
A Sony employee refused to answer oral questions asked by the Commission's inspectors, while another Sony employee was found to have shredded documents during the inspection. Fuji and, at a later stage, Maxell co-operated with the Commission and submitted additional evidence.
Sony's fine was increased by 30% for obstructing the Commission's investigation. Fuji's and Maxell's fines were reduced by 40% and 20% respectively because they co-operated with the investigation.
Competition Commissioner Neelie Kroes said: "This decision sends two warnings to companies engaging in cartel activities: first, the Commission can prosecute cartels effectively even without prompts from immunity applicants, and second, obstructing a Commission's antitrust investigation leads to severe penalties."
Sony was fined over €47 million, Fuji over €13 million and Maxell €14 million.
