EN 38629 EN EN COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 05/12/2007 C(2007) 5910 final COMMISSION DECISION of relating to a proceeding under Article 81 of the EC Treaty and Article 53 of the EEA Agreement Case COMP/38629 - Chloroprene Rubber (ONLY THE ENGLISH, ITALIAN AND GERMAN TEXTS ARE AUTHENTIC) TO BE NOTIFIED TO: Bayer AG E.I. DuPont de Nemours and Company DuPont Performance Elastomers S.A. DuPont Performance Elastomers L.L.C. The Dow Chemical Company Denki Kagaku Kogyo K.K. Denka Chemicals GmbH Tosoh Corporation Tosoh Europe B.V. ENI S.p.A. Polimeri Europa S.p.A. (Text with EEA relevance) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets. EN EN TABLE OF CONTENTS 1. INTRODUCTION...................................................................................................... 6 1.1. Addressees................................................................................................................... 6 1.2. Summary of the infringement................................................................................... 7 1.3. Duration of participation in the infringement......................................................... 7 1.4. Relevant product ........................................................................................................ 7 1.5. Territory covered ....................................................................................................... 8 1.6. EEA and world-wide market values......................................................................... 8 2. THE INDUSTRY SUBJECT TO THE PROCEEDINGS IN THIS CASE .......... 8 2.1. The product ................................................................................................................ 8 2.2. The market players .................................................................................................... 9 2.2.1. Undertakings subject to these proceedings.................................................................. 9 2.2.1.1. Bayer AG..................................................................................................................... 9 2.2.1.2. Denki Kagaku Kogyo Kabushiki Kaisha ................................................................... 10 2.2.1.3. The Dow Chemical Company.................................................................................... 11 2.2.1.4. DuPont Group............................................................................................................ 11 2.2.1.5. The Eni Group............................................................................................................ 13 2.2.1.6. Tosoh Corporation..................................................................................................... 14 2.2.2. Other market players.................................................................................................. 15 2.3. Description of the market........................................................................................ 15 2.3.1. Supply......................................................................................................................... 15 2.3.2. Inter-state trade.......................................................................................................... 16 3. PROCEDURE .......................................................................................................... 16 3.1. The Commission's investigation.............................................................................. 16 3.2. Statement of Objections and Oral Hearing ........................................................... 17 3.3. Investigations and proceedings in other jurisdictions .......................................... 18 4. DESCRIPTION OF THE EVENTS....................................................................... 19 4.1. Basic principles and structure of the cartel ........................................................... 19 4.1.1. Objectives................................................................................................................... 19 4.1.2. Organisation .............................................................................................................. 22 EN 4.1.2.1. Regional meetings...................................................................................................... 22 4.1.2.2. Global meetings ......................................................................................................... 22 4.1.2.3. Tri- and bilateral meetings and contacts .................................................................... 23 4.1.2.4. The course of the meetings and contacts.................................................................... 24 4.1.3. Concealing of competitor contacts............................................................................. 25 4.2. The chronology of cartel events and evidence relating to specific meetings....... 26 4.2.1. Period before 1993..................................................................................................... 26 4.2.2. Period from 1993 until 1996...................................................................................... 26 4.2.3. Period from 1996 until 1998...................................................................................... 34 4.2.4. Period after September 1998 ..................................................................................... 46 5. APPLICATION OF ARTICLE 81 OF THE TREATY AND ARTICLE 53 OF THE EEA AGREEMENT....................................................................................... 57 5.1. Relationship between the Treaty and the EEA Agreement ................................. 57 5.2. Jurisdiction ............................................................................................................... 57 5.3. Application of Article 81 of the Treaty and Article 53 of the EEA Agreement . 57 5.3.1. Article 81 of the Treaty and Article 53 of the EEA Agreement.................................. 57 5.3.2. The nature of the infringement................................................................................... 58 5.3.2.1. Principles concerning agreements and concerted practices ....................................... 58 5.3.2.2. Agreements and concerted practices in this case ....................................................... 60 5.3.2.3. Principles concerning single and continuous infringement ....................................... 68 5.3.2.4. Single and continuous infringement in this case........................................................ 70 5.3.3. Restriction of competition .......................................................................................... 71 5.3.4. Effect upon trade between Member States and between EEA Contracting Parties... 73 5.3.5. Provisions of competition rules applicable to Austria, Finland, Iceland, Norway and Sweden........................................................................................................................ 75 5.3.6. Additional Considerations ......................................................................................... 75 5.3.6.1. Procedural claims by [a company within the ENI group] and Polimeri .................... 75 5.3.6.2. The CR types concerned ............................................................................................ 78 5.3.6.3. The alleged coercion of the Japanese producers........................................................ 79 6. ADDRESSEES OF THIS DECISION.................................................................... 80 6.1. General principles .................................................................................................... 80 6.2. Liability in this case ................................................................................................. 82 EN 6.3. Addressees in this case............................................................................................. 98 7. DURATION OF THE INFRINGEMENT............................................................. 99 7.1. Limitation Period ..................................................................................................... 99 7.2. Duration .................................................................................................................. 100 8. REMEDIES ............................................................................................................ 104 8.1. Article 7 of Regulation (EC) No 1/2003................................................................ 104 8.2. Article 23(2) of Regulation (EC) No 1/2003 ......................................................... 105 8.3. The basic amount of the fines................................................................................ 105 8.3.1. Calculation of the value of sales .............................................................................. 105 8.3.2. Determination of the basic amount of the fines ....................................................... 106 8.3.3. Gravity...................................................................................................................... 106 8.3.3.1. Duration.................................................................................................................... 108 8.3.3.2. Additional amount.................................................................................................... 108 8.3.3.3. Conclusion on the basic amount .............................................................................