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Lutèce, Prochamp and Bonduelle

Fine running into millions for cartel of Dutch and French mushroom processors

The European Commission has established that Lutèce, Prochamp and Bonduelle, three producers of canned mushrooms, formed a cartel for more than a year, coordinating prices and dividing customers in Europe. For that reason, the European Commission has imposed fines amounting to 32.23 million Euro. Lutèce did not get a fine, because that company revealed the existence of the cartel to the European Commission. For Prochamp, the fine was reduced. Because the three companies were prepared to settle the case with the European Commission, they saw their fines go down by another 10%. In the context of the same inquiry, proceedings were started against Riberebro as well. That inquiry is still running.

The cartel was about selling private label canned mushrooms through tendering procedures at retailers and wholesalers, such as cash-and-carry companies, and professional buyers such as catering companies. The common purpose of the cartel members was to stabilize the market shares of the companies involved, and to put a stop to price drops. To attain this goal, the companies exchanged confidential information on tenders, set minimum prices, agreed upon volume objectives, and divided buyers amongst themselves. The cartel took the form of a non-aggression pact, with a compensation arrangement in case of a buyer switch. In addition, pre-arranged minimum prices were applied. The breach started on September 1, 2010, and lasted until December 22, 2011 in Lutèce's case, and until February 28, 2012 in the case of Prochamp and Bonduelle.

Under the European Commission's 2006 leniency notice, Lutèce received full immunity from fines, because the company revealed the existence of the cartel. That way, the Dutch company evaded a 20.7 million Euro fine for its participation in the breach. Prochamp received a fine that was 30% lower, because of its cooperation with the inquiry. Moreover, the European Commission, based on its 2008 settlement notice, lowered the fines for each of the three companies by 10%, because they admitted to their participation in the cartel and their liability in that regard. This means Prochamp will have to pay a 2.02 million Euro fine, and Bonduelle has to pay 30.21 million Euro.



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