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Lower EU court annuls US$864 in European Commission cartel fines
A LOWER European court annulled an US$864 million antitrust fine levied against several air cargo carriers by the European Commission, finding the regulator's decision contradictory and "internally inconsistent."
In 2010, the commission found "a single and continuous" infringement of EU competition rules by Air Canada, Air France-KLM, British Airways, Cathay Pacific, Japan Airlines and Qantas. Lufthansa enjoyed immunity for betrayed its confederates.
But the carriers appealed, arguing that the commission's ruling was so vague they couldn't tell the nature and scope of the infringements of which they were accused, reported Los Angeles area Court House News.
Specifically, the decision mentioned four violations on different routes and at different times by different carriers, while the commission relied on grounds that the violation was single, worldwide, continuous, and included all routes.
In 13 similar opinions issued Wednesday, the European General Court overturned the commission's decision and annulled the fines - agreeing with the carriers that the decision was inconsistent and contradictory.
The Luxembourg court noted that both the principle of judicial protection and the fact that national court rely on - and are bound to follow - commission decisions mean the decisions must be clear, precise and unambiguous.
In this case, the EU court found that while the grounds of the commission's decision described a single cartel committing a single and continuous infringement of antitrust rules - made up of all the involved carriers and all their routes. But the operative part of the decision waffles between that scenario and one involving four separate single and continuous violations, hence the contradiction.
The ruling is the second big set back for EU competition authorities this month. On December 4, the commission's four-year inquiry into collusion in the credit insurance market also flopped, and Brussels cleared 13 major banks under investigation, citing "lack of evidence", reported London's Financial Times.
If Wednesday's decision stands, the biggest beneficiaries will be Air France, which was originally fined EUR182.9 million (US$198.4 million), KLM (EUR127.2 million) and BA (EUR104 million). Other carriers affected include Air Canada (EUR21 million), Martinair (EUR29.5 million), Cargolux (EUR79.9 million), Cathay Pacific (EUR57.1 million), JAL (EUR35.7 million), LAN Chile (EUR8.2 million), Qantas (EUR8.9 million), SAS (EUR70.2 million) and Singapore Airlines (EUR74.8 million).
A spokesperson for the commission said it "will carefully examine the judgments and their implications as well as potential next steps."
In 2010, the commission found "a single and continuous" infringement of EU competition rules by Air Canada, Air France-KLM, British Airways, Cathay Pacific, Japan Airlines and Qantas. Lufthansa enjoyed immunity for betrayed its confederates.
But the carriers appealed, arguing that the commission's ruling was so vague they couldn't tell the nature and scope of the infringements of which they were accused, reported Los Angeles area Court House News.
Specifically, the decision mentioned four violations on different routes and at different times by different carriers, while the commission relied on grounds that the violation was single, worldwide, continuous, and included all routes.
In 13 similar opinions issued Wednesday, the European General Court overturned the commission's decision and annulled the fines - agreeing with the carriers that the decision was inconsistent and contradictory.
The Luxembourg court noted that both the principle of judicial protection and the fact that national court rely on - and are bound to follow - commission decisions mean the decisions must be clear, precise and unambiguous.
In this case, the EU court found that while the grounds of the commission's decision described a single cartel committing a single and continuous infringement of antitrust rules - made up of all the involved carriers and all their routes. But the operative part of the decision waffles between that scenario and one involving four separate single and continuous violations, hence the contradiction.
The ruling is the second big set back for EU competition authorities this month. On December 4, the commission's four-year inquiry into collusion in the credit insurance market also flopped, and Brussels cleared 13 major banks under investigation, citing "lack of evidence", reported London's Financial Times.
If Wednesday's decision stands, the biggest beneficiaries will be Air France, which was originally fined EUR182.9 million (US$198.4 million), KLM (EUR127.2 million) and BA (EUR104 million). Other carriers affected include Air Canada (EUR21 million), Martinair (EUR29.5 million), Cargolux (EUR79.9 million), Cathay Pacific (EUR57.1 million), JAL (EUR35.7 million), LAN Chile (EUR8.2 million), Qantas (EUR8.9 million), SAS (EUR70.2 million) and Singapore Airlines (EUR74.8 million).
A spokesperson for the commission said it "will carefully examine the judgments and their implications as well as potential next steps."
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