July 15, 2009
European Court reduces ADM fine in citric acid cartel case
In a citric acid cartel lawsuit, the European Court has reduced imposed fines of Archer Daniels Midland (ADM) from EUR39.69 million (US$55.7 million) to EUR29.4 million (US$41.26 million), as the company could not be classified as a leader in the cartel on the citric acid market.
In December 2001, the European Commission imposed fines on five companies for their participation in a secret cartel on the citric acid market, namely ADM, Cerestar Bioproducts, Hoffmann-La Roche, Haarmann & Reimer and Jungbunzlauer.
The companies were accused of price fixing.
When the fines were imposed back then, ADM was classified as a leader of the cartel, and leadership can result in a significant increase in the basic amount of the fine. Such classification also automatically excludes the granting of a very substantial reduction of the fine.
To classify ADM as a leader, the Commission relied on items of evidence contained in two documents annexed to the statement of objections. But the Court finds that those items were not referred to in the wording of the statement, which prevented ADM from having an opportunity to exercise its rights of defence.
Therefore, it was established that ADM was classified as a leader unlawfully. The Court also holds that the Commission did not present other relevant evidence that could establish ADM as the leader.
Therefore, the Court concludes that the Commission was not entitled to apply to the fine imposed on ADM an increase of 35 percent on account of the aggravating circumstance resulting from that classification.
